Seán Canney (Galway East, Independent)
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I welcome the opportunity to address the House on road haulage costs and how the Government is supporting this critical sector. I will share my time with the Ministers of State, Deputies Christopher O'Sullivan and Jerry Buttimer.

Geopolitical events over the past number of years and the storm damage to Holyhead at the end of last year have highlighted the importance of the road haulage sector and the contribution it makes to our economy, facilitating domestic and international trade. During this period of instability, the sector has demonstrated resilience and a willingness to work with policymakers to overcome challenges and promote careers, skills development and sustainable employment in the wider logistics and supply chain sector in Ireland.

While nobody would deny events such as Brexit, the Covid-19 pandemic and the invasion of Ukraine have driven up costs in what is already a sector with a tight profit margin, there are reasons to be positive about the trajectory and future growth of the sector. At the end of 2024, my Department reported that over 44,500 commercial goods vehicles exceeding 3.5 tonnes were taxed in Ireland. This was an increase of 4% from almost 42,800 in December 2023 and the second year in a row that the numbers increased. There were almost 4,000 licensed road haulage operators registered in Ireland in 2024, with 24,300 vehicles operating on these licences. Approximately 65 of those haulage operators are licensed to operate internationally, with the other 35% operating domestically. While there was a decline in road freight activity in 2020, all available measures, such as the number of laden journeys undertaken and tonnes carried, have increased year-on-year since 2021 and were above the 2019 levels by the end of last year.

I want to draw the attention of the House to the recently published Freight Transport Association Ireland manager's guide to distribution costs 2025 report. It is positive to note that this year's report shows a continued slowdown in the average rate of increase in business and transport overhead costs and that operating profit margins are increasing year-on-year. However, it is crucial that the Government continues to support the sector and I would like to provide Deputies with an overview of the strategies being implemented by officials in my Department aimed specifically at the sector.

In December 2022, the Government published Ireland's road haulage strategy 2022-31 following two phases of public consultation. The strategy highlights the importance of the haulage and rail freight sectors and identified 39 actions, split into short-term priorities expected to be completed within the next two to three-year timeframe and enablers for medium to long-term progress that will ensure the delivery of policy objectives over the full term of the strategy. Implementation of the short-term actions has progressed well since publication and two annual progress reports have been published to date.

A key action identified in the road haulage strategy was to establish a road freight forum with representatives from Departments, agencies, the haulage and freight industry and the logistics sector. The road freight forum held its first meeting in February 2023. It is chaired by my Department and its membership includes representatives of the National Transport Authority, NTA; the Road Safety Authority, RSA; Transport Infrastructure Ireland, TII; the Freight Transport Association Ireland, FTAI; and the Irish Road Haulage Association, IRHA. The forum formalises engagement between key stakeholders and builds on the work done in response to the international crises I mentioned earlier. It supports collaboration, which is key to identifying practical and effective solutions to support the sector to maintain Ireland's essential trade and strategic supply chains. The forum also monitors the implementation of the road haulage strategy and provides an opportunity for stakeholders to identify emerging challenges at the earliest opportunity.

The road haulage strategy provides a roadmap for how the sector can decarbonise to meet the targets set out in the climate action plan. Given that the Irish haulage sector is currently almost exclusively fuelled by diesel, I am sure Deputies will agree that decarbonisation will be a significant challenge for the sector in the medium term to 2030 and beyond. My Department has provided targeted supports to assist the sector on its journey to zero emissions. The zero-emission heavy-duty vehicle, ZEHDV, purchase grant scheme has a budget of €3.5 million in 2025. It supports the purchase of zero-emission vehicles and associated charging infrastructure. The fleet assessment audit offers businesses an assessment by an independent energy adviser, who will provide guidance on the transition to zero-emission vehicles. Two tax incentive schemes that allow operators to reduce their immediate tax bill against company profits when investing in zero-emission vehicles are in place. My Department is also looking at the charging infrastructure requirements for heavy-duty vehicles, HDVs, through the HDV electrification pathway working group. The group has been tasked to develop a strategy to set out a pathway for the electrification of the heavy-duty fleet in Ireland. I look forward to hearing the outcomes of this important work.

In regard to the ongoing reliance on diesel, I remind Deputies that the diesel rebate scheme, DRS, has been in place since 2013 and remains available to licensed haulage operators in respect of vehicles over 7.5 tonnes. At diesel prices over €1.43, including VAT, a maximum rebate of 7.5 cent per litre is provided. While not all haulage operators qualify for the scheme, it should be noted that the total number of DRS claimants in 2023 represented only 46% of the total number of eligible road haulage operators in the State. All operators are encouraged to make the best use of all available Government grants for which they are eligible.

As we cannot afford to wait for electrification measures to have an impact, the use of renewable fuels in the interim must be encouraged. We need to increase the blend of biodiesel in the national fuel mix to deliver a level of emissions savings from the existing fleet. The renewable transport fuels obligation scheme requires suppliers of mineral oil to ensure a percentage of the motor fuel they place on the market in Ireland is produced from renewable sources. For diesel vehicles, the current fuel blend available at garage forecourts is approximately 7% biodiesel. My Department intends to raise this to 20% by 2030.

I am aware, as I am sure everybody in the House is, that the cost of renewable fuels is higher than the cost of diesel and that the haulage sector has called for the introduction of subsidies for alternative fuels. While the interaction between fuel prices, taxation and a wider shift away from fossil fuels is complex and a matter of tax policy for the Department of Finance, Deputies may find it helpful to know that biofuels are fully relieved from the carbon component of mineral oil tax. This means carbon tax does not apply to biofuels, such as hydrogenated vegetable oil or biomethane, used in road vehicles, whether private or commercial.

Ireland's carbon tax is an integral part of the Government's response to the need to address climate change and meet the legally binding commitments established in the Climate Action and Low Carbon Development (Amendment) Act 2021. As annual increases in the carbon tax are implemented, the differential in tax costs between biofuels and fossil fuels will continue to widen, further incentivising the uptake of biofuels. However, demand for renewable transport fuels is growing across many sectors and supplies are likely to remain constrained given current global production capacity.

My Department recently finalised a study on the use of hydrotreated vegetable oil, HVO, in the heavy-goods vehicle sector, including the likely future availability and price, the decarbonisation potential and potential transitional incentives. The conclusions of the study indicate that unless the renewable transport fuel obligation is also reformed, increasing the use of HVO in the HGV sector will simply shift biofuel use to HGVs and away from other road sectors, thereby leading to only modest reductions in overall emissions. In addition, the study also forecast that a subsidy to equalise the price of HVO with diesel by 2030 would cost the Exchequer €502 million. That is the single-year cost of this type of subsidy and, as I indicated, the overall reduction in emissions would be minimal.

Although the financial costs of implementing sustainability initiatives can be a significant barrier for the haulage sector, I am heartened to note in the FTAI 2025 report that more than three quarters of those surveyed have sustainability policies in place. We must continue to support this transition. I will outline the concrete measures that can be implemented right now at little or no cost. Eco-driving techniques can help drivers to reduce their fuel use and emissions, while enhancing road safety for all road users. A national standard for eco-driving courses has been established and a range of subsidised or fully funded eco-driving training courses are available to HGV drivers. The promotion of digital and operational efficiencies such as load sharing and logistics consolidation hubs are also being explored by my Department.

The logistics and supply chain skills group was established in 2019 to support the promotion of careers, skills development and sustainable employment in the logistics and supply chain sector. The group has been making great progress, with support from officials in my Department, to address systemic challenges. In 2023, the group organised Ireland's first ever logistics and supply chain skills week to promote careers in the sector and engage with supply chain executives on the new skills needed now and into the future. It has become an annual event, with a plan under way for 2026 to coincide with the 19th European Supply Chain Day. Skills week also includes a dedicated event for transition year students organised by my Department that highlights the potential careers in the sector. Next year's transition year event will take place on 23 April at the National Basketball Arena in Dublin.

New training and educational opportunities developed in recent years include the transport operations and commercial driver apprenticeship scheme, the logistics and distribution one-year traineeship and the seven-month professional HGV training programme. The logistics and supply chain skills group has been working collaboratively to address the immediate driver shortage. This has resulted in several positive actions, including the removal of the quota for employment permits for HGV drivers from outside the EU-EEA. Almost 1,400 work permits have been issued to HGV drivers by the Department of Enterprise, Tourism and Employment since 2023.

My Department is working to increase the number of licence exchange agreements with non-EEA countries. We currently have agreements with Australia, Georgia, Gibraltar, Guernsey, the Isle of Man, Japan, Jersey, Northern Ireland, the Republic of Korea, South Africa, Switzerland and the United Kingdom. Agreements with Moldova, North Macedonia and Bosnia and Herzegovina are at various stages of development. Ukrainian drivers who are resident in Ireland on a temporary basis under the temporary protection directive can exchange their licence and work in Ireland once they have completed driver certificate of professional competence, CPC, training.

We need to do more to make the process of recruitment from abroad easier to understand and as efficient as possible. Officials in my Department are working across Departments to identify areas for improvement and to eliminate duplication where possible. This year, the Department of Enterprise, Tourism and Employment has agreed to no longer verify driving licences as part of the work permit application. This is a welcome development that will reduce processing times. Work is ongoing to introduce a single permit application portal but this is a medium-term action as IT developments are required.

My Department is also engaging with the Road Safety Authority on driver CPC training. Professional drivers are required under law to maintain their driver CPC by completing 35 hours of training over a period of five years. The RSA recommends completing one module per year to meet the 35-hour requirement. There are six modules in total, with each module taking seven hours to complete. Bus and truck drivers are obliged to complete modules 1 to 4, plus either module 5 or module 6 if only a single licence is held.

If a driver holds both a bus and a truck licence, they must complete modules 5 and 6. It is critical that drivers maintain their CPC to ensure road safety. This is something we cannot compromise on. However, I have heard from stakeholders that the training material would benefit from review and updating. I am pleased to inform the House that an RSA-chaired review group reviews the CPC modules on an ongoing basis. Relevant stakeholders, including sector representatives, are invited to participate. The review of module 1 was recently completed and updated training material will be ready for roll-out to trainers in the coming weeks. A review of module 4 will begin early next year.

The RSA is also examining the legislation to see where comparable training can count towards CPC requirements. For example, if a driver has a valid ADR certificate for the carriage of dangerous goods and has previously completed one full cycle of CPC training, they do not need to resit module 2. Over 600 drivers have engaged with the RSA to avail of this exemption with approximately 150 exemptions granted and 50 applications being processed. Officials in the Department will continue to engage with the RSA to consider best practice examples in other countries and whether there is scope for additional enhancements to training. While acknowledging that there is room for improvement in the process, it is also important that we do not lose sight of the fact that driver CPC is working well in the main and meets the requirements of EU legislation. Over 46,500 training days were delivered between January and September this year. There are 92 training organisations with 475 active trainers providing training at 220 training centres throughout the country. Private companies and trade representative bodies can apply to be approved as a driver training organisation which would allow them to arrange training to suit their individual needs.

While recent years have been challenging for the haulage and road freight sector, the Department provided financial support to insulate operators from the sudden and severe spike in diesel prices following the outbreak of the war in Ukraine in February 2022 and associated ongoing cost pressures faced by hauliers. Some €15.6 million was paid out by the Department in 2022 and 2023 to 3,085 and 2,828 operators, respectively, representing approximately 81% and 74% of the overall road haulage operators licensed in the State. The support scheme operated under the EU temporary crisis framework on state aid was adopted to address the economic impacts, in particular on energy prices, of the war in Ukraine. In January this year the Department received a request for financial compensation from industry representatives to support Irish hauliers impacted by the Holyhead Port closure at the end of 2024. The Department engaged constructively with the request over the intervening months, working with industry representatives and outlining the additional information required to assess the financial impacts of the closure on hauliers and to consider whether financial support could be provided. While some information was provided to the Department, it did not provide the level of detail necessary to substantiate the evidence base for the request for support. Department officials are willing to engage further with representative bodies should they be in a position to submit the additional documentary evidence needed to assess the request for compensation.

Deputies are no doubt aware that new requirements in relation to the use of smart tachographs were introduced under EU law in recent years. This includes the need to retrofit such devices in older commercial vehicles if the vehicle is engaged in international commercial activity. The requirements have so far only applied to heavy goods vehicles and passenger vehicles but will apply to vehicles over 2.5 tonnes from July 2026. These requirements are necessary to ensure the highest level of safety on our roads and to allow authorities to monitor compliance with transport-related legislation and drivers rest periods. The shortage of commercial drivers is well known to everyone in this House. We must support our drivers by ensuring they are afforded proper protections including adequate breaks and rest times. Smart tachographs allow for rigorous monitoring and enforcement of these entitlements. I have received requests for financial assistance to support the initial cost outlay associated with the retrofit obligations. The retrofit obligation was adopted in 2020 and came into effect in stages from the end of 2024, providing reasonable time for businesses to plan for the associated costs.

The costs of retrofitting tachographs are not unique to Ireland and will be similarly experienced by transport operators across the EU and the UK including Northern Ireland. I assure the House that the retrofit requirement does not apply to passenger vehicles if their only international commercial activity involves journeys to the United Kingdom, including Northern Ireland. Officials in the Department, in agreement with the European Commission, have also agreed that the retrofit obligation will not be enforced for freight vehicles that simply pass through Northern Ireland as part of a journey, provided certain conditions are met. The journey through Northern Ireland must be undertaken because it is the most efficient route from a starting point in Ireland to a destination in Ireland and goods cannot be dropped off or collected when passing through Northern Ireland. If goods are to be dropped off in Northern Ireland, regardless of whether this will happen as part of a journey through Northern Ireland or as a separate journey, the retrofit obligations apply. A similar situation arises for UK vehicles moving from or to Northern Ireland through Ireland; for example, goods arriving on a ferry to Dublin Port using the M1 to deliver the goods to Belfast. This arrangement will be in place until the end of June 2026. Officials will continue to engage with the EU in an effort to formalise this agreement with the UK before the temporary arrangement expires.

Earlier this year, I was asked to consider engaging with UK officials in relation to the HGV road user levy. This levy was introduced in 2014 and applies to all HGVs driven on all UK roads, including in Northern Ireland. Prior to its introduction, the Irish Government engaged with UK authorities seeking to exempt Northern Ireland from the charge because of the potential impact on cross-Border trade. The UK ultimately decided to maintain the levy with only very minor exemptions for Northern Ireland. The levy was suspended in August 2020 to support the haulage sector during the Covid-19 pandemic but was subsequently reinstated from 1 August 2023 with amendments to align the levy with the environmental performance of a vehicle in support of decarbonisation goals. Zero-emission HGVs are exempted from the charge. While I appreciate that the levy imposes additional costs on HGV operators, including Irish hauliers, its application is a matter for the UK authorities.

I will provide an update in relation to toll discounts, which were raised with me by road haulage representatives earlier this year. It is important to point out that the operation and management of individual national roads is a matter for TII in conjunction with the local authorities concerned. This includes day-to-day operations regarding national roads including toll roads and the establishment of a system of tolls. Officials in the Department have engaged with TII to consider whether the applicable discounts can be applied in a user-friendly manner, similar to how the discount is applied on the M50. I understand that the current system is cumbersome for hauliers and that an integrated system is preferable. An attempt was made in 2016 to implement an integrated system but it was unsuccessful. Ultimately, it is not within the remit of the Department or TII to introduce such a system, nor can the operators be obliged to change their practices. It is important to point out that toll revenues received by TII contribute to the funding of essential services on national primary and secondary roads as a whole. This includes general day-to day maintenance and operation of the network such as pavement repair and renewal, incident and emergency responses, winter gritting, safety barrier repair and renewal, energy supply and maintenance of route lighting. These essential services are necessary to ensure the national road network is managed and maintained. TII relies upon tolling revenue along with funding from the Exchequer to fund this work. It is important to point out that if tolling revenue did not exist, it would be necessary to use additional Exchequer funding to ensure that the national road network is maintained.

Everyone in this House appreciates the challenges posed to the haulage sector in recent years. I acknowledge the resilience demonstrated by the sector and thank it for its contribution to the wider economy. While ongoing challenges such as driver shortages and decarbonisation cannot be resolved immediately, I am confident the strategies being implemented by the Department will have the desired effect in the medium to long term. Officials and I are actively engaging with the representative bodies. I urge them to continue to work constructively and collaboratively with officials over the lifetime of the road haulage strategy.

This morning, I met the working group chaired by Minister Ken Skates in Wales in relation to Holyhead. A working group was set up which finalised its business this morning. Out of that, there will be a continuation of the work bilaterally between the UK, Wales and ourselves. We will continue to work to find more efficiencies and resilience on the Irish Sea between Ireland and the UK going forward.

That is a plus that has come out of the disaster that happened in Holyhead last year.

Pa Daly (Kerry, Sinn Fein)
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Last night, the Government had a chance to vote for measures that would cut the cost of living. Instead, it stood firm and decided to continue the rip-off. The irony of the Government putting statements out the day after it rejected the very measures that would have brought down the cost of driving and haulage for SMEs should not be lost on anyone here. I cannot say that I am looking forward to the excuses. For the Government, today's debate is a box-ticking exercise that allows it to lip service to a problem it is unwilling to fix. Last night, it could have agreed to reverse the carbon tax increase to cut the cost of petrol and diesel, to end rip-off insurance premiums and hold insurance companies to account, to stop further toll hikes, to hold energy companies to account and to end financial penalties for those who have to pay their motor tax in instalments. These real and practical measures would have eased the pressure on workers, families and the struggling haulage SME sector. Instead, Fianna Fáil, Fine Gael and the regional Independents and their supporters chose to pile on more costs, a move which has become the hallmark move of this Government. As a result, ordinary people and our SMEs are under unbearable pressure. According to them, jobs are at risk.

In Kerry, local businesses are telling me the same story. Rising fuel costs, insurance and toll hikes are all pushing them to the brink. According to Chartered Accountants Ireland, costs have increased for almost 80% of small businesses in the last year. Budget 2026 did nothing for them. Two thirds of the businesses in the country say that it offered no relief. What is the inevitable outcome? Consumer prices will rise and more businesses will close. The Irish Road Haulage Association has been sounding this alarm bell for many months, but its warnings have fallen on deaf ears. That is why the Government was in such shock lately when Fastway Couriers collapsed. A total of 300 jobs and 1,000 contractors are out of work. Franchise drivers have been left in total limbo. The fallout has been swift and severe. However bad the situation is for the full-time staff, the situation facing franchise drivers is even worse. Many of them are owed weeks of pay they will likely never be refunded. Franchise operators are out thousands upon thousands of euro. These are the SMEs in our community, the sole traders, the people working for themselves and the people who live down the street. There is real concern that this will be repeated across the industry unless something changes and something is done to address all of the rising costs, especially for motorists.

The IRHA has warned that the latest increase from TII and the Government will be the straw that breaks the camel's back, with widespread strike action on the cards. Who is this going to hurt the most at the end of the day? It will be the ordinary people and their expenses - the people who are struggling with the cost of living. It pushes up prices for basic necessities which are already sky high. Is the Government taking the cost-of-living crisis seriously at all? On top of this, we face a severe HGV driver shortage. A total of 4,000 drivers are needed over the next five years. It is almost ironic that the week after we deported a planeload of Georgians, the Government is rushing to do a deal to get more Georgian drivers back into the country. Waiting times of up to two years for a test and sky-high training costs are pushing people away from the profession. The Government must act now to fast-track recruitment and reduce costs. This Government has no plan, just statements and spin. Sinn Féin has a plan - we heard about it last night - to cut the tolls, reverse carbon tax hikes, end rip-off insurance and support SMEs. These steps would ease the pressure on hauliers, protect jobs and help families. It is time for action, not excuses.

Rose Conway-Walsh (Mayo, Sinn Fein)
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The Minister of State referred to the road freight forum. I could not be in front of the Minister of State without mentioning the western rail corridor and the important part it will play in addressing freight transport in the future. I look forward to an imminent announcement to ensure this is going to happen as quickly as possible. The Minister of State also referred in his statement to the Climate Action and Low Carbon Development (Amendment) Act 2021. The carbon tax has been an integral part of the Government's response to the need to address climate change but when there is no alternative, it just becomes a revenue-raising exercise. It is not a tax to change behaviour. That is the big issue that I have with the carbon tax and the extra cost it is putting on hauliers and others.

As Deputy Daly said, only this week we tabled very clear and targeted proposals that would have cut the cost of driving for ordinary motorists and for the haulage industry. We called on the Government to stop the toll hikes, which could have been done, to reverse the carbon tax increases on fuel, to end the financial penalties for paying motor tax in instalments and to stand up to the insurance industry in order that the benefits of the long-promised reforms are passed on to drivers. They were clear and simple asks, but the Government rejected every single one of those proposals. Because of that, the pressure on SMEs and on hauliers continues to mount, putting local jobs and businesses at serious risk. The latest toll increase, in the words of the IRHA, was the straw that broke the camel's back. An increase in carbon taxes on fuel eats into the narrow profit margins for haulage companies and makes routes increasingly unviable. The hauliers who bring food to our supermarkets and deliver packages and orders from struggling SMEs are forced to pay these costs multiple times a day in the case of toll charges because there is no alternative. It is like shooting fish in a barrel.

Like everything else, these spiralling costs inevitably work their way onto the shelves and out of the pockets of ordinary families. Once again, it is the people who can least afford it who are paying for Government inaction. We saw the consequences of this crisis with the collapse of Fastway Couriers last month. Hundreds of workers, contractors and franchisees are left in limbo, some owed weeks of pay and others facing deep debts from the vehicles that they finance themselves or from the huge franchise buy-in fees. All this has come just weeks before Christmas for families. I commend the work of my own colleagues in Laois, Senator Maria McCormack and Councillor Claire Murray, who have been supporting all of those affected locally in County Laois. Obviously it spreads to County Mayo and other counties. Fastway's receivership did not come without warning. The IRHA told the Government months ago that the industry was on its knees and companies would collapse without intervention in budget 2026, but the Government did nothing. Now it is the workers and the small operators who are paying the price. SMEs across the country are currently buckling under the rising wage costs, huge regulatory burdens and spiralling operational costs.

Budget 2026 increased the minimum wage, which was welcome and needed, but it failed to provide any substantial assistance for employers contending with high wage costs. That is why Sinn Féin's alternative budget proposed a temporary employer PRSI rebate to fill that gap. We are constantly receiving pleas from struggling small businesses from across all sectors to reduce the huge administrative burden placed upon them by Government regulations. We are not talking about lifting regulations; we are talking about the administrative burden that is put on these businesses. Valuable resources within small family-run businesses are being allocated for completing unnecessary levels of paperwork and bureaucracy. What the Government fails to understand is that these businesses do not have the large legal and compliance department behind them that multinational companies do. More often than not, it is the mum and dad in the family-run business sitting down outside of the hours or at the weekends trying to get all of that paperwork done. Instead of listening and supporting them by reducing the burden, we heard last week that the Government is adding additional red tape for hauliers. The proposed restrictions on heavy-load transport, potentially requiring permits to be applied for up to a year in advance, will add yet more ridiculous red tape to businesses that are already overwhelmed. Industry experts have flagged this and stated that it will cause major delays to essential infrastructure delivery and even risk electricity supply upgrades.

What are we doing here? Where is the common sense? While the Minister of State and the Government continue to ignore industry pleas, Sinn Féin will stand up for SMEs, hauliers and ordinary workers. I urge those on the benches opposite to urgently adopt measures to cut haulage costs, support our struggling SMEs and safeguard local jobs before even more damage is done.

David Cullinane (Waterford, Sinn Fein)
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I do not think the Minister of State or the Government get it at all. People outside this building wonder whether they live in a bubble and whether they have any understanding of what it is like for ordinary families. The Government initiated these statements on the issues and rising costs affecting the haulage industry when the Government is responsible for those same rising costs. What is ironic and a real slap in the face to everybody faced with rising motoring costs is that we proposed a motion in this House last week and put real solutions on the table, but the Government voted down each and every one of those solutions last night. Toll increases affect everybody from ordinary motorists to SMEs and hauliers. Tolls are going up. What does this Government do? It votes against measures that would reduce those tolls. Deputy Doherty moved a Bill through this House to ensure that insurance premiums and prices would come down and the savings would be sent on to the customer. What does this Government do? It does not want to implement that same Bill and leaves it there. It is the same with the carbon tax hike on petrol and diesel. The Government cannot blame anybody but itself for that. It put that increase on the cost of petrol and diesel, which again affects ordinary families, hauliers and businesses.

The reason people see the Minister of State and the Government as out of touch is that every week, families have to look at all of these rising costs. When their insurance bill comes through the door, they see that it has gone up. When they use a toll, it has gone up. When they go into a supermarket and pay for their groceries, they see that prices have gone up. In almost every part of their lives from petrol and diesel to childcare costs and rents, families are paying more. Every time we bring forward a motion, this Government votes against all of those solutions. I am afraid the Minister of State simply does not get it. I know of the anger of families, particularly when many of the issues we are discussing today could have been addressed in the budget just gone by but the Government failed to do so. Hauliers are angry. As Deputy Daly said, there is a threat of strike action. They see these toll increases as almost the last straw, but they are also faced with all the other costs and cost increases.

I come from Waterford in the south east. We talk about what affects hauliers and motorists. They also need good and safe roads. Last year and this year, there was an opportunity for the Government to fund two really important road projects for Waterford and the south east. The first is the N25 Waterford to Cork road. It is a major road that connects the two major cities of Waterford and Cork. It needs to be upgraded but the funding has not been made available. It has stalled over the past number of years. Again, no funding for the Waterford to Limerick road has been made available for the past two years and no funding has been made available this year. The pathway for the bypass has been agreed but the funding has not been made available. We have really poor roads connecting two major cities - Cork and Limerick - to Waterford. Hauliers and motorists use those roads. I do not know whether the Minister of State has ever travelled the road from Waterford to Limerick. I do not know how any towns and villages one has to go through. It is an absolute nightmare for hauliers, truck drivers and motorists yet in the capital allocation for this year and last year, no funding was made available and these projects were not moved on.

That is what really angers people. We have a do-nothing Government that put statements on the clár for us to talk about issues but will not act on any of the issues. It is not building the roads that need to be built. It is not doing anything about the rising costs for hauliers, ordinary families or ordinary motorists. Worse, the Minister of State has the brass neck to come in and say nothing of any substance to anybody in his speech. He is responsible for some of the costs with regard to the carbon tax increase on petrol and diesel. It is about time for this Government to get its head out of the clouds, start living in the real world, meet real people and have some sense of understanding of ordinary motorists and families. It had an opportunity to support them last night when Sinn Féin proposed solutions but it did not do so. Instead, it turned its back on people again.

Ciarán Ahern (Dublin South West, Labour)
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I welcome the fact that we are discussing haulage costs and the SME sector more broadly today. It is an issue that goes to the heart of our economic well-being and our regional development - more pertinently, our balanced regional development - as well as the survival of thousands of SMEs across our country. The cost of moving goods on Irish roads is one of the greatest threats to the competitiveness and, many cases, survival of many of our small businesses, such as artisan food producers in the west, engineering firms in the midlands and family-run exporters in the south east. The Labour Party has long championed the role of SMEs in sustaining good jobs and vibrant local economies. Today, those businesses are being squeezed from all sides. The cost of transport has become a pressure point that exposes the other vulnerabilities in these businesses.

Haulage costs have risen sharply over recent years. Many of the same issues that are faced when it comes to the general cost of motoring, which we discussed here last week, are being felt in terms of haulage costs. Those issues include fuel price volatility and insurance premiums that remain stubbornly high. Other issues include increased compliance costs. We cannot discount the lingering logistical impact of Brexit. An SME owner who once could plan a year's costs with some certainty in advance now faces almost monthly guessing games in many cases. Hauliers, and by extension SMEs, are asked to absorb these rising costs while dealing with a chronic shortage of drivers. Our businesses rely on road haulage for almost all domestic freight movement, an issue I will come back to. Unlike larger corporations, SMEs cannot negotiate better rates or hedge their fuel costs on international markets. They cannot simply pass increases directly on to consumers either. They take the hit and very often, they are pushed dangerously close to the edge.

From my perspective, this is not just a temporary market disturbance. This is structural. It exposes weaknesses in Ireland's transport infrastructure, the lack of alternatives and the absence of a clear Government strategy for sustainable and affordable freight movement. We cannot ask SMEs to compete internationally while saddling them with some of the highest logistics costs in Europe. Nor can we pretend that the haulage sector and the infrastructure around it - the trucks on our motorways in the early hours of the morning and the local drivers who keep our shelves stocked and our supply chains continuous - are somehow an optional extra in our economy. They are essential but unfortunately, all too often, Government policy treats them as an afterthought.

We need to acknowledge that these rising costs do not fall evenly. This is an issue of concern in terms of balanced regional development. Businesses in rural Ireland, which are already further away from ports and major urban centres, are hit hardest. Every extra kilometre, every extra fuel hike and every insurance increase compounds the challenges they already face. When those businesses struggle, the communities around them suffer too with fewer jobs, fewer training opportunities and fewer reasons for young people to stay. If we are serious about balanced regional development, we must be serious about supporting the cost base of the businesses that anchor those regions. We should consider a national freight strategy. I know we have a road haulage strategy, which extends out to 2031, and a rail freight strategy, which extends out to 2040, but it would be helpful to marry the two. We need a plan that is more than a collection of disconnected initiatives.

Accelerating investment in alternatives will be key if we are to overcome the challenges faced by the haulage sector and, by extension, by SMEs that rely on road haulage. It is all the more reason we need an holistic overarching freight strategy. We need to see a scaling-up of electric and hydro HSV infrastructure so that SMEs are not stuck paying high diesel prices while the rest of Europe moves ahead. I acknowledge that hydrogen and battery electric trucks remain all too rare here and that 50% of our haulage fleet is over ten years old and diesel-powered. That being the case, as our hauliers try to decarbonise and reduce our transport emissions these additional costs should not all be passed on to the businesses that rely on them. The Government should consider rebates and tax supports to incentivise the uptake of low-carbon but often higher-cost fuels like HVO and biodiesel blends.

Government should also consider incentives to replace older, higher-emitting trucks with older, more efficient models. Cost-neutral measures such as how we manage our roads and even toll lanes to reduce idling time can also impact positively on the emissions coming from our road haulage sector. A renewed commitment to and focus on rail freight is really crucial though to providing alternatives and improving our infrastructure. There has to be a modal shift and that will require investment in our rail infrastructure. That also means better integration between ports, rail and road networks so we are not forcing SMEs into using the most expensive road of transport simply because it is the only one available to them.

Insurance premiums are also an issue. I will not labour the point because I made it last week when we were talking about motoring costs, but the Government and, indeed, the public have been hoodwinked by the insurance industry. The new personal injury guidelines were introduced in 2019 and between then and 2023 there was a drop, on average, of 40% in claim costs yet over roughly the same period liability premiums increased by 17%, according to the Central Bank. Meanwhile, insurance providers in Ireland are enjoying profits double the European average. It is scandalous. I echo my colleague Labour Party spokesperson on finance, Deputy Nash, as well as groups such as the Alliance for Insurance Reform, in calling for Government to bring about meaningful changes to the insurance sector. Genuine reform should lower premiums not just for the average motorist but for hauliers and the SME fleet as well.

Another area that requires serious change is the administrative burden on SMEs. If we had more streamlined compliance processes that reduced duplication, paperwork and costs while of course maintaining high standards, it would have a really big impact on the load placed on SMEs and reduce what is often a massive stressor for people who are running them. SMEs support safety, environmental responsibility and good working conditions but they cannot absorb endless administrative burdens created without consultation with them and that do not always give due regard to efficiency.

I emphasise any policy that might be produced for freight must also protect the workers who keep goods moving, including the drivers, mechanics, logistics staff and so on. All too often when we see rising business costs, the finger is first pointed at the cost of labour and this is used as an excuse to squeeze workers’ pay and conditions. We in the Labour Party reject that approach outright. A sustainable logistics sector must include fair wages and decent and safe working hours and conditions. It must include investment in driver training and apprenticeships and, crucially, supports to attract more people, especially young people, into the profession. A thriving SME sector cannot be built on the backs of exploited labour.

I conclude be re-emphasising the rising cost of road haulage is not a niche concern but a national economic issue. Every household feels it when prices rise. Every business feels it in their margins. When SMEs struggle communities who rely on them for jobs feel it. We need to see what might be called a fair deal for SMEs, hauliers and workers in the sector, one that recognises the essential role it plays in our economy and one that ensures small businesses are not crushed under the weight of transport costs they have little to no power to control. We can and must deliver a freight system that is affordable, sustainable and fair.

Cormac Devlin (Dún Laoghaire, Fianna Fail)
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I welcome the opportunity to speak on haulage costs for SMEs. If you run a small business in this country, nothing reaches your customer without a truck somewhere along the line. Every pallet into a supermarket, every consignment into a chemist and every online order delivered to a home in Dún Laoghaire depends on a haulier who is watching diesel, tolls, insurance and wages every day. When their costs rise, everyone’s costs rise.

We acknowledge the Government stepped in when the shock of Russia’s full-scale invasion of Ukraine sent fuel prices soaring. Two temporary haulage support schemes in 2022 and 2023 provided €15.6 million each year and reached roughly three quarters of licensed operators. That helped keep doors open and kept people in work at a vulnerable moment. We also have the diesel rebate scheme. Above €1.43 per litre, hauliers can receive up to 7.5 cent per litre back. However, only 45% of operators claim it. That tells me two things, the of first of which is we need a stronger information push, especially for smaller operators without a back-office team, and the second of which is that if the scheme is not attractive or accessible enough for SMEs, we should be open to tweaking it.

Fuel is only one part of the picture though. Hauliers are being hit by a wide range of cost drivers, including insurance, the price of new trucks, labour shortages, the UK HGV road user levy and the cost of meeting new standards. Some of these are necessary, such as better training, higher safety standards and decarbonisation, but we owe it to SMEs to take cost out of the system wherever we can. One example shows how decisions up the line can land on small operators or small business customers, namely, the emergency generators stuck in Dublin Port for over a year. Last year I tabled parliamentary questions about these generators, which were parked in the port because they are too heavy to cross the M50 toll bridge. I raised it again this week seeking a report. These units were purchased to protect our security of electricity supply, yet tens of millions of euro worth of equipment sat idle, with storage costs, delay costs and uncertainty throughout the supply chain. These generators are not SME assets but big-ticket items owned by major utilities. However, when our permitting and infrastructure systems are so complex and fragmented they can strand such equipment for over a year, we should be honest these costs will end up on the bills of households and small businesses and on the haulage invoices SMEs are paying. That case underlines the need for more joined-up thinking between transport, energy and climate policy. We cannot have one part of the system encouraging new backup plant and grid investment and another part making it practically impossible, or prohibitively expensive, to move a transformer or generator from port to site.

The same applies to decarbonisation. Ireland’s Road Haulage Strategy 2022–2031, work on alternative fuels including HVO, hydrogen and biomethane, the zero-emission heavy duty vehicle, HDV, grant scheme and new HDV charging infrastructure are all essential if we are to meet our 2030 and 2050 climate targets. SMEs will judge us not on the number of strategies we publish but on whether the new options are affordable and usable in the real world.

I propose three practical steps. The first is to use the road freight forum to identify and fix pinch points that drive unnecessary cost, delays in abnormal-load permitting, unclear data on bridge capacities and duplication of paperwork across agencies. A single reliable database can remove friction from every single job. The second step is to design climate measures in a way that helps rather than penalises smaller operators. We should make sure the diesel rebate scheme is fully taken up and ensure alternative fuel grants are sized so that small, family-run hauliers can access them, not just the big fleets. The third step is to keep a close eye on the labour side. Adjustments to the employment permit quotas and expansions of apprenticeships and traineeships are welcome but we must also ensure the profession's long hours and tough work are compatible with a decent family life. Retaining skilled drivers is one of the cheapest ways to keep costs lower.

Haulage is the bloodstream of the SME economy. If we want lower costs for small businesses and households, we need a system that moves goods efficiently, safely and cleanly and one that does not leave generators stranded in ports or SMEs picking up the tab for avoidable bureaucracy. I look forward to working with the Minister of State to ensure our policies are aligned, strategies are implemented and the cost of moving goods in Ireland remains as competitive as possible.

Mark Wall (Kildare South, Labour)
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Before I call on Deputy McGuinness, I welcome 25 students from Gaza who are with us in the Public Gallery. They are currently studying in UCD. They are very welcome and I hope they enjoy their day. They are guests of Senator Harmon.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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There is no other sector that can point so accurately to the Government in terms of taxes and obstacles placed in the way of its development than road haulage couriers and the logistics business generally.

Let us look at what they are facing. Every year, they make their submissions. Generally speaking, they ask for improvements to the sector, for the load of regulation to be lightened and for red tape and costs to be cut. No government has really reached out to fulfil these requests. Naturally enough, the costs haulage and logistics companies face are passed directly on to the other SMEs that use these businesses or directly on to households that order from Amazon or some other company. We passed the pension plan. I have no issue with that but it adds a cost. The increase to the minimum wage adds a cost. I do not know how many taxes there are on diesel but I can say that it is now cheaper to buy diesel in the UK than here. We are strangling the development of that particular SME sector by increasing the cost of fuel, including diesel, every year. Extra holidays will be legislated for. That is another cost to carry. There are also warehouse rents, planning permission, general regulation to keep within the law, road tolls and so on. Surcharges on direct ferries represent another charge. Access to drivers is a huge issue.

In all of the time this has been debated and in all of the time reform has been asked for, it has never been delivered in a real and meaningful way. In their decisions, every government has undermined the possibility of delivering a real cost-effective solution to the logistical issues that companies and individuals face in their daily lives. As long as we continue to do that without consideration of the impact of taxes and regulation, we are going to continue to add costs for everybody who uses a courier or a haulage operator. The costs will just continue to rise.

I look at the briefing documents we received and I read the Irish Road Haulage Association position and the position of the European Union. None of it seems to take into consideration the fact that people put huge effort into the SME sector and into haulage and logistics and get very little profit out of it. There is no encouragement there. Then, when a crisis is reached and drivers are wanted, it is nearly impossible to get them into the State. I have been asking for a greater effort to be made to train HGV drivers and to encourage people to come into the area and work in the sector. That does not happen, however. As I have said, you cannot get the visas. It is the same with mechanics. It is all associated with road haulage and the business of logistics. You cannot get them. When you apply to bring someone in, whether a qualified mechanic or a specialist in the area, you are left waiting forever.

The Government has not streamlined its systems. It has not reached out to this sector, which carries a huge burden of cost put on it by the State. Every time we do anything in here, it increases the level of red tape and bureaucracy. Nobody seems to attempt to grapple with the reality of the cost of putting a truck on the road or of replacing it with one with a greener type of engine. We do not even look at the standard of diesel in Ireland. We are useless at it. I ask that the Minister of State take note of Government initiatives that could be taken to reduce the direct costs on the sector, which are then passed on to the consumer.

Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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Just to let the last speaker know, Sinn Féin is very aware of what is happening with the haulage industry. Last week, Sinn Féin brought forward a motion in the Dáil mandating the Government to tackle the cost of driving. The measures outlined, particularly those relating to tolls, insurance and carbon tax, would have provided relief to our haulage sector as well as to the ordinary motorist yet last night TDs from Fianna Fáil and Fine Gael and their backers in the Lowry Independents shamefully voted down that motion. According to the Irish Road Haulage Association, the recent collapse of the courier company Fastway is just the tip of the iceberg and skyrocketing costs could result in more of the same. Many simply cannot absorb continuously increasing costs within their own margins.

People appreciate that there is much that is outside of the Government's control but they do hold it responsible for how it responds to events and manages what is within its control. The most substantive action the Government plans to take is to increase the cost of petrol and diesel through carbon tax while hiking tolls. The best case scenario for the course of action the Government intends to take is that increased costs will be passed on to consumers.

We have also seen hauliers, particularly those in the Border region, facing challenges relating to dual regimes with regard to the tachygraphs that monitor their compliance with operating regulations. The hauliers I have spoken to in Cavan and Monaghan have cited increased costs relating to the upgrading of equipment and potential issues arising from the need to pull over to manually enter changes of jurisdiction. As I am sure the Minister of State will appreciate, this is impractical in communities where you cross the Border multiple times in a matter of minutes. I would appreciate it if the Minister of State would engage on and examine these issues ahead of the final date of adoption next year.

We all appreciate the challenges facing the haulage sector. We need to see statements in the Dáil from the Minister and from the parties. Action needs to be taken now. We need action to sort everything out, action that is in line with the motion Sinn Féin proposed last week. At the very least, this would go some way towards alleviating the pressure on our hauliers. The least the Government could do is to not actively work to make the situation worse through nonsensical and counterproductive measures such as carbon tax and toll hikes.

Eamon Scanlon (Sligo-Leitrim, Fianna Fail)
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I welcome these statements on this important sector. Recent years have been extremely challenging for the haulage and road freight sector. In my own area of south Sligo, there are three haulage companies operating: O'Dowd's Haulage in Gorteen, which employs 60 people and uses 20 trucks; Stephen Mullen's haulage company in Tubbercurry, which employs 55 and has 25 trucks; and Strandvaus in Collooney, which employs 97 people and operates 40 vehicles. When you listen to those companies, you hear the reality of the escalating costs of operations over the past five years. Since 2020, the cost of equipment has increased by 40%, taxes on fuel have risen by 89.56% and the cost of CVR testing has increased by 19%. Tolls have also risen by 13%. In addition, the minimum wage has increased by 39% with employer's PRSI increasing by 41%. Cumulatively, these compounded costs for companies have reached nearly €50,000. Such a financial burden threatens their very viability, transforming what should be a competitive marketplace into one of unsustainable expenses.

The situation is not isolated. It is a reflection of broader trends affecting many transport companies across Ireland. Many of these businesses are operating on razor-thin margins or, worse, at a loss. The Irish transport sector is the backbone of our national economy, ensuring the movement of goods, services and essential supplies across the length and breadth of the country. Without a functioning and healthy transport sector, we risk crippling our economic resilience and the livelihoods of the countless families who depend on these jobs.

I welcome the programme for Government commitment to support the decarbonisation of road freight and commercial coaches through the introduction of alternative fuels such as hydrotreated vegetable oil, hydrogen and biomethane.

The taxation of HVOs used for commercial freight is a step in the right direction towards sustainable transport solutions. While these initiatives are welcome, we can and must do more to alleviate the tax burden on the transport industry, particularly in relation to fuel. The rising costs associated with these essential elements of our transport infrastructure are unsustainable. In 2022 and 2023, two temporary haulage support schemes were initiated by the Department of Transport, which provided much-needed financial relief to the sector. In those two years alone, €15.6 million was disbursed to a combined total of 5,900 operators. This represented approximately 81% and 74%, respectively, of the road haulage operators licensed in the State. While these figures are encouraging, many operators still face significant challenges. Fortunately, diesel prices have receded from the peaks witnessed in the latter half of 2022. The diesel rebate scheme in place since 2013 is available for licensed haulage operators with vehicles over 7.5 tonnes. With diesel prices over €1.43 per litre, including VAT, the maximum rebate of 7.5% per litre is available. However, the take-up of the scheme has room for improvement. In 2024, only 45% of licensed road haulage operators availed of it. There is something wrong there. I do not know whether the hauliers are not getting the information or why the take-up is so low. According to data from the Revenue Commissioners, there were 1,918 applicants for the scheme in 2024, a decline of 2% on the previous year. This indicates we must work harder to ensure operators are well informed and able to access the supports intended for them.

I reiterate the importance of our haulage and road freight sector. While the Government has taken some steps to mitigate the costs incurred by operators, more has to be done to support the sector in maintaining its competitiveness and to ensure a resilient logistics network that can effectively meet the demands of our ever-evolving market.

Roads have been mentioned this evening. It is crucial these main roads are improved. I am talking about the N17, N15 and N16. It is very important to Sligo and the whole region that these roads are upgraded to be suitable for the traffic that is on them.

Pádraig O'Sullivan (Cork North-Central, Fianna Fail)
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SMEs are the lifeblood of Ireland's economy. They account for 99.8% of all businesses and employ over two thirds of our workforce. They are primarily the family-owned firms, rural hauliers and local manufacturers that keep our communities alive. Today they are under unprecedented strain. One of the most pressing issues they face is the rising cost of haulage. Haulage is not a luxury; it is the backbone of our supply chains. Every product we consume, from food to pharma, depends on road transport. For SMEs, the cost of moving goods has spiralled beyond control. Fuel prices remain volatile, insurance premiums are climbing and maintenance costs are squeezing margins tighter than ever. For many small operators, these costs are not just a challenge but an existential threat. The Irish Road Haulage Association has warned soaring insurance costs are forcing some rural SMEs to shut their doors. Add to this the challenge of delayed payments and cash flow uncertainty, and it is a perfect storm for small businesses trying to keep their wheels turning. These are not abstract figures; these are real businesses, real jobs and real communities at risk.

Government has taken steps, such as the €18 million licensed haulage support scheme and the diesel rebate scheme, and these have helped to some degree, but they are temporary, limited in scope and often underutilised. For example, only 45% of eligible operators claimed the diesel rebate last year. We have to ask why. It is because this process is complex and small operators simply do not have the administrative capacity to navigate it.

This is not just about cost but about competitiveness. When haulage costs rise, Irish SMEs lose ground to larger firms and international competitors. We risk hollowing out our domestic economy and leaving rural Ireland behind but there are things we can do. We need long-term solutions, not just short-term patches. We could target financial supports for SMEs and haulage, not just during crises but as part of an ongoing policy. These businesses need predictability, not uncertainty. Investment in green and fuel-efficient technologies can reduce costs and help us meet our climate targets. Let us make sustainability a cost-saving measure, not a burden. Insurance reform could tackle spiralling premiums that are crippling rural hauliers. This is a structural issue that demands structural change. Better engagement with SMEs would ensure they could access schemes like invoice financing and microloans to manage cash flow. Supports must be practical, not bureaucratic.

If we allow haulage costs to continue to rise unchecked, we risk undermining the businesses that sustain our communities. SMEs are resilient but resilience has its limits. Let us act decisively to keep Ireland's supply chain strong and our small businesses competitive. This is not just an economic issue but a social one. Every time a small haulier closes its doors, a community loses jobs, a family loses income and rural Ireland loses another piece of its fabric. We cannot allow that to happen.

Martin Kenny (Sligo-Leitrim, Sinn Fein)
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It is good to be here to contribute to these statements on SMEs and, particularly, the road haulage sector. As has been said by many, the sector is the lifeblood of small industry and business across the country. Fleets of white vans deliver everything we know to shops around the country, from bread and milk right through. All those vans on the road mean jobs in every part of the country and they need support. All of them are under stress and strain with the spiralling costs of insurance and fuel, which are not being dealt with effectively by Government. Then we see ever-increasing tolls on the toll roads which they have no option but to use. For the transport sector, those toll increases are even higher than for people using their cars.

We have serious problems getting staff to carry out these roles. More and more haulage companies are having trouble finding drivers and other staff. The training programmes outlined by the Minister are all well and good but do not deliver the levels of competent workers the sector needs or anything near it. Many of them have to try to get workers from abroad. I have dealt with many, even small hauliers, in my part of the country who bring people in from outside the European Union. A man last week told me he had brought somebody in from Zimbabwe as a driver. First they had to get the permit to get into the country. Then they had to deal with the licence exchange, and that can take weeks and weeks. Then they had to get a PPS number. The final thing they had to get was a visa to go to the Continent and the Schengen Area. There are huge delays in all these things.

The portal for applying for visas is clogged up, slow and not delivering for people. There is huge frustration among many people in this sector who want to employ people and have workers prepared to do the work but when they try to bring them into the system, they find there are walls built in front of them. It would not cost anything to streamline all that and make it happen quickly, effectively and efficiently for people.

Many workers do not want to stay in the sector because there are other employment opportunities. That creates its own difficulties. There are very long hours sometimes. There are many complications with regulations around moving in and out of different jurisdictions, particularly with the new tachograph instruments brought in recently. Government needs to support the industry to develop new efficiencies, particularly regarding carbon and moving away from diesel. Those are big costs that small businesses cannot afford unless they get support from Government. Government needs to step up to the plate when it comes to supporting small businesses across the country, particularly the haulage sector.

Paula Butterly (Louth, Fine Gael)
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I have been following the statements this afternoon. Many colleagues have given a good idea of the shape and size of haulier firms throughout the country. We have 4,779 hauliers across the island of Ireland and 70% of them have no more than three trucks, yet they contribute €3.7 billion per annum to the economy.

Unusually, these are not multinationals. These are small firms that operate in local communities. Indeed, they spend locally, they employ locally and they do good for the local economy.

Many of my colleagues here have highlighted the different rising costs. The Government has tried to face the challenges and support our SMEs as much as we possibly can, but I have also listened to the debates, particularly from the haulage firms over the last week, about how difficult it is now to transit across the M50. Indeed, for any commuter or any business, you are going to spend hours on the M50 on any day of the week. More recently, I heard that the number of accidents on the M50 has already exceeded the number of accidents in 2024. This is a problem. Anyone who has driven a truck or, indeed, anyone who has had a haulage company is well aware that time is money. They have to sit in traffic. They are wasting time. It is producing a cost, but more importantly, it is reducing the driver's time, which potentially means they are not going to make their boat, and if they do not make their boat, they are not going to make their delivery. That is a further increased cost.

A significant point we all have to realise relates to how we get the food and goods on our shelves. We get them thanks to the haulage industry. About 90% of Irish goods are transited on our roads. Without the haulage industry, we will not get the goods from A to B, never mind to C. We need a producer to produce but we need the haulier to transit and help us get the goods back home, such as food into our fridges.

The rising costs, I agree, are fuel, insurance and compliance. We have staff shortages. We need training. We have tolls. My first ask is that we look at the M50 toll and give haulage companies the concession that they do not have to pay it. There are rising costs. The port tunnel charge is going to go up again. When I became a TD in December 2024, the charge was €10. It is now €12. There is always an announcement of a euro here or there at the beginning of the year but, strangely enough, it seems to increase secretly during the course of the year. We have to allow our hauliers some sort of incentive to keep those wheels turning.

I read recently that Department officials are considering permits when it comes to very heavy loads - anything, I believe, between 400 tonnes and 500 tonnes. The Department has also accepted that these kind of loads are increasing on our roads. I am struggling with this one because if we have hauliers that have increased costs and we have these types of loads, which potentially are adding to the bottom line of these companies, why on earth would we be considering a permit that would have to be applied for 12 months in advance? I know we all like to forward plan and think ahead, but I cannot conceivably see how having to request a permit 12 months in advance is going to be an efficient, nimble, cost-effective route for any haulier. It would disincentivise them and, quite frankly, I do not think it will happen. My second ask, therefore, is that we do not bring in this process of permits.

In summary, let the M50 be free for hauliers and take the idea of permits for them off the table.

Verona Murphy (Wexford, Independent)
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From the Independent Technical Group, I call on Deputy Michael Collins.

Michael Collins (Cork South-West, Independent Ireland Party)
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Hauliers face repeated toll hikes, with the M50 and Dublin Port Tunnel driving up costs. Some operators pay up to €20,000 per month in tolls, forcing many out of business. The Irish Road Haulage Association has warned this threatens Ireland's supply chain, which relies on road haulage for 98% of goods. The current toll system wastes €27 million in fuel and emits 45,000 tonnes of CO2 annually. The haulage industry is calling for toll exemptions and barrier-free tolling to cut costs and protect the economy.

I would like to know where all the money for all these tolls is going. Has it gone back into the roads? Certainly, we do not see them in west Cork, as well the Minister of State knows well. I will name a few of the roads in a minute. He travels on them the same as I do. Hauliers and the motorists are being hit the most all the time. This is another tax on their back.

Transport companies are facing serious issues with a new online portal for driver work permits. One company in west Cork could not even log in because its details had been uploaded incorrectly. They have described the system as completely flawed and not fit for purpose. It even asks drivers from other countries to upload their own information - drivers who often have no idea how to navigate this process. Surely it should be enough for the company to input the details. I strongly urge the Minister of State to streamline the system and make it practical for the industry.

Earlier on Leaders' Questions, I spoke about to people with licence issues. Last week, and again this morning, as I said, I raised the issue of returning Irish emigrants who face unnecessary and unfair barriers when trying to exchange foreign driving licences for Irish ones. I am calling for immediate change, the removal of the ten-year limit and the facilitation of direct exchange with those who previously held an Irish licence and now hold a valid foreign licence long term. I am being told that this can be done with the stroke of a pen. The Tánaiste has stated he will look into it. I am asking the Minister of State to look into it again, not kick the can over to the Road Safety Authority, RSA, or the National Driver Licence Service, NDLS, and have a look at the Dutch model. It is time we got on the side of people and the side of Ireland, rather than the side of red tape and bureaucracy.

When I had my contribution written up, I did not expect the Minister of State to be before me, but he knows as well as I do the condition of the roads in west Cork and the bypasses that have been promised in west Cork, with nothing happening in Innishannon, nothing happening on the southern or northern relief road and nothing happening on the Bantry road. The Minister of State might say it is happening on the Bantry Road. They are drawing up a report as if to say, "Kick the can down the road, throw a few hundred thousand euro into a report and they will all be happy." My brother, Councillor John Collins, attended the meeting and asked them when a bucket will put on the road. They do not know. It will probably be five or ten years, but it is a kick-the-can-down-the-road exercise to say they are doing something. Look at the Allihies mine shaft. There is a hole above in Allihies, a collapsed road, and nobody is doing anything about it. Look at the road in Lyre. Councillor Daniel Sexton brought it up in a motion last year. The road collapsed in the last seven or eight years and was never fixed. It is road after road. There are the Union Hall speed signs. At Owenahincha Cross turnoff, Councillor Sexton is again working so hard on new road alignments to Newmills. I could go on forever.

Richard O'Donoghue (Limerick County, Independent Ireland Party)
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In November 2021, I brought a truck in here to Leinster House for the same reason we are talking on this today, for the road hauliers. At a time of crisis in this country, they travelled the roads to make sure that we had food and energy in this country.

I have a letter from Martin Ryan & Sons Transport, a big haulage company in Cappamore in County Limerick and I will give a small piece of it. It contains a summary of a table outlining the key cost increases imposed by Government policy in recent years. It states that they have calculated the direct impact on their business, drivers and vehicles based on the drivers' vehicles. The company has 173 employees and operates over 100 vehicles. The letter calls for a review of the tax on transport and states the compound costs have had a severe impact on cash flow and the ability to invest in newer, cleaner vehicles and that many transport companies are now working on a razor-thin budget.

To give the Minister of State the statistics on this, from 2021, when I brought the truck in here, to 2025, the overall increase in the cost of equipment has been 40%. Government taxes on fuel are 89.56% up since 2021. Commercial vehicle roadworthiness testing, CVRT, has seen a 19% increase. Tolls have seen a 13% increase. The minimum wage has seen a 39% increase. Employers' PRSI has seen a 41%. These costs are on top of trying to keep afloat. We are wondering why the cost of living has gone up in this country. It is because of the tax implications as well.

This is where it comes to the Minister of State's responsibility, biodiversity. People are now spending €1,000 a week replacing mirrors on trucks in County Limerick because the Government will not allow the sides of the roads and the ditches to be cut for a safe path for vehicles, pedestrians and cyclists.

Christopher O'Sullivan (Cork South-West, Fianna Fail)
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That is not true.

Richard O'Donoghue (Limerick County, Independent Ireland Party)
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They are now driving down the middle of the road. There is plenty of room for biodiversity inside the ditches around the fields. It is the law that anyone in this country should be able to travel in it safely.

Today, we are looking at somebody in the Chair who has driven trucks and was part of the haulage industry. For God's sake, the Minister of State is partly responsible for the costs of truckers and his Government is the cause of inflation in this country through taxes.

Michael Fitzmaurice (Roscommon-Galway, Independent)
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I welcome the opportunity to contribute to the debate. People need to realise that about 165 million tonnes of goods are hauled around this country every year and 13.6 billion miles are done by hauliers. I have a truck licence and I drove trucks a lot of my life. Anyone who knows it will see the council go along and take two swipes of the road, but the third and fourth swipes are needed where there is a mirror of a bus, lorry or anything that is going along. Let no one tell me that a bird has a nest on the side of-----

Christopher O'Sullivan (Cork South-West, Fianna Fail)
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There are six months in the year when they can be cut back. What are you talking about?

Michael Fitzmaurice (Roscommon-Galway, Independent)
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-----the road. The facts are that two more swipes are catching the mirrors of the buses going to school, plus the trucks. That is the reality of it. The quality of roads is a problem.

The reality for truck drivers at the moment is they buy a truck and pay €46,000 in VAT. They pay 23% VAT for every drop of diesel they have and 19 cent of every litre is carbon tax, which is another tax. If they need a trailer, there is a tax. There is VAT on tyres and another tax to get rid of tyres. I have covered carbon tax. Looking at the amount of tax, and they talk about "keep her lit" and "keep on trucking", I will tell you one thing: I do not know how the exhaust is even going with the amount of money that has to be paid on one lorry in tax.

There is another problem we have allowed in this country. People are coming in from eastern bloc countries and are cutting the daylights out of it. They have a different rate for their drivers, tyres, insurance and every part of the truck you have to do. They are cutting the daylights out of our hauliers here. If you try to get someone to even drive a lorry, it costs between €5,000 and €7,000 for them to get their test, do their certificate of professional competence, CPC, and go right through the whole lot. We are driving youngsters away from going near trucking.

On the environment, I acknowledge a rebate is there at the moment, but for HVO, which would cut emissions by 90%, although it is dearer fuel, there is no rebate. People talk about COP30, COP40 or whatever they want to talk about, but in actual fact they are not interested. If the Government wanted to do something, it would give a rebate on the likes of HVO.

We need to look at the way lorry drivers, hauliers and people who own lorries are being treated in this country. Also, auto-enrolment is coming in January, and while it is one of these things that has to be done for workers, it will cause a problem for small two- and three-person businesses. Let us be honest about it. I have talked to a number of people who say this will be a problem in the industry. I will ask one thing. How come, when we go to London or France with a truck, we are screwed in each place by the €10 or €20 that has be paid ahead of that truck? Eastern bloc lorry drivers or lorry owners are coming across here, cutting the daylights out of it and they are not hit like our guys are hit when they go out of the country.

Ruairí Ó Murchú (Louth, Sinn Fein)
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We all know the issues that exist at the minute in relation to the cost-of-living crisis. The Government's budget did not have any solutions for those who are suffering at this time, whether we are talking about the issues of insurance, rent or the cost of housing in general. There are also the insurance companies, and anybody who recently had to buy shopping will realise the cost of everything. That is the way it has been explained to me by many people.

If we are talking about roads, we know the addition of carbon taxes means we will have really significant fuel costs. The idea of carbon tax was to dissuade people. We all know a number of things have changed since, including post Covid and the cruel invasion of Ukraine by Russia. That changed the nature of it. We saw fuel prices go through the roof. Anyone who can possibly avoid driving does that now. I do not see any logic in keeping adding on the pain. As has been brought up by many previously, it also creates an anomaly in Border areas and creates an issue for those who are trying to sell fuel in the part of the world I come from. That is an issue that could be dealt with.

Those are not the only costs that have gone up in the last while. There is the cost of tolls. Sinn Féin has offered its solutions on that but these were thrown back in our face by the Government. The Government is not overly worried about those particular issues, but the fact is an awful lot of people out there are absolutely feeling the pain. If we are talking about cross-Border issues that are impacting on hauliers, my party colleague Cathy Bennett spoke about the issue of tachographs from the technical point of view. She lives in a place, like me, where you could cross the Border over and back a number of times. It does not make sense that someone would have to technically get out to switch an apparatus around and all the rest of it. There is also an requirement for HGV drivers to pay, generally before they have crossed the Border, a €10 levy. The issue with that is that if they are caught and have not done it, travelling from South to North, they can get a €300 on-the-spot fine. This is an issue the Minister needs to bring up with his counterparts in Britain. We have given voice to it but, like an awful lot of cross-Border issues, it has just remained. Again, there are a number of anomalies.

I remember the Tánaiste previously talked about the need for some sort of facility whereby these issues could be dealt with rather than having them just lie and continue on. We have seen the positives in relation to Queen's, DkIT and that partnership, but we need to make sure we make it easier for those who live on this island to be able to operate across it.

Carol Nolan (Offaly, Independent)
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I am delighted to speak on these statements. I spoke on the haulage sector and its challenges recently at its conference in Galway. I am delighted to speak again in the Chamber to relay the difficulties and issues presented to me at that conference in September.

The haulage sector contributes €3.7 billion per annum to our economy. It creates thousands of jobs in rural Ireland where there are virtually no opportunities for people. It must be protected. When we look at things like the toll increases, it appears to be the case that the people who get up early in the morning and work the hardest are punished the greatest. That is what many working people, hauliers and many people who commute to Dublin are saying to me. In terms of the toll increases, many haulage companies are paying between €20,000 and €30,000 per month in toll fees, which is scandalous. Will the Government intervene with TII and send a clear message that people and companies cannot afford another toll increase? Why can that message not be sent from here loud and clear?

I am particularly concerned about the costs and financial burden being put on companies that contribute greatly to our economy. The cost of diesel has increased by over 10 cent per litre in the last two weeks. That will cripple many haulage companies and motorists. I propose that the Government look at putting a cap on diesel prices for the transport sector, which is a crucial cog in the wheel of our economy. We must support and protect jobs. As I said, we should be supporting the people who get up early and work very hard to contribute to our economy. They are the people who need support.

If we look at the tax burden, IRHA president Ger Hyland has stated many times that the haulage industry has been taxed out of existence; 32% of taxes being foisted upon one sector is a disgrace. That needs to be looked at. Instead of crippling it with taxes, charges, tolls and carbon tax, let us try to support and protect jobs into the future.

I ask for the proposal for a cap on fuel prices to be considered for the haulage sector. I know the IRHA has asked for the tax burden to be reviewed and for the areas of fuel, tolls and compliance to be looked at and for the introduction of targeted supports or relief measures to help operators transition to more sustainable fleets without financial penalty. Thank God the fairy tale party, the Green Party, is no longer here because what it was doing to the sector was outrageous. If it wants it to become greener, then the Government should be supporting it. There should also have been a subsidy for HVO.

Gillian Toole (Meath East, Independent)
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I will speak to the subtle costs borne by the brave, community-entrenched entrepreneurs of the SME sector. Local craftspeople, farmers, growers and shop owners have symbiotic relationships with local rural and urban communities. I acknowledge previous Government supports during Covid but the impact of restrictions then, which forced so many consumers to go online, can never be repeated. I raise that as a flag for future consideration. Regardless of global opportunities or turbulence the SMEs are the constants in our communities. They are employers and sponsors. They are keeping a look out for older members who may be living alone. When we join the dots and connect everything up, the hauliers connecting the producer with the consumer are the vital cogs in the wheel. I will not go back over what colleagues have said on statistics but we have to enable all of that.

The SMEs in Meath East are offering some suggestions for improvement and providing future opportunity as follows. For example, school books and stationery vouchers were put forward by Forever Amber bookshop in Ratoath. It would dovetail with the school books scheme. The local enterprise offices could strengthen and increase supports to retailers and service sector SMEs. They continuously look for support and shop local campaigns should be year-round. In particular, local authorities and utility companies should co-ordinate road and footpath work and communicate in advance with the SMEs. The impact of unannounced road works, etc., is deleterious for business. There should be provision of adequate and free parking facilities. Finally, there is the irrecoverable impact of Mercosur on farmers. That is threatening food safety, our Irish food security and ultimately public health. The Minister of State has heard plenty on that but those are a few simple suggestions.

Verona Murphy (Wexford, Independent)
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It would be remiss of me, particularly given my former role - and this is not in any way to remove my impartiality - not to mention the debate on hedge cutting as referenced by both the Minister of State and Deputy Fitzmaurice. The six-month rule is there. There is also the provision for hedge cutting to be requested at the council level where there is a danger. I do not know of any instance where it is not granted. However, this week five young people have been killed - and I am not making any statement regarding the circumstances of those deaths – needless to say, on our roads. The bigger provision with regard to hedge cutting is that every council in the country is only paying for two swards. The height of the mirror on a standard HGV or bus carrying schoolchildren or passengers, which we are trying to encourage, is approximately double that. That is what needs to be considered within the time period of the six months where hedge cutting is allowed. If we are to be serious about tackling the issue of saving lives on our roads, we need to review that.

It is not an issue for Wexford County Council because it seems to be able to buck the trend and we have infrastructure where it goes above that. Primarily it comes down to money, and no amount of money will save lives unless we use it wisely. I thank everybody for their contributions.