Tom Parlon (Laois-Offaly, Progressive Democrats)

I will not be delivering the same speech as the Minister delivered in 1996 because, I understand, there have been quite a number of changes since. This scheme, which originated in 1968, provides valuable tax concessions for disabled drivers and disabled passengers. Over time the benefits were extended and the scheme was put on a statutory basis. The scheme is open to persons, drivers and passengers, with disabilities, who have obtained a primary medical certificate. To qualify for a medical certificate, the person must be severely and permanently disabled and meet one or more of a number of specific medical criteria relating to the use of upper and lower limbs.

Possession of a primary medical certificate entitles a person to benefit from the following reliefs: remission or repayment of vehicle registration tax and a refund of VAT on the purchase of a vehicle; a refund of the VAT on the cost of adaptation of a vehicle, up to a maximum of €9,523 for a disabled driver and €15,872 for a disabled passenger; repayment of excise duty on the motor fuel used in the vehicle for the transport of the disabled person, subject to an annual maximum of 600 gallons, approximately €1,016 per annum at current excise rates; and exemption from the payment of annual road tax to the local authorities.

Annual ongoing relief also includes the possibility of changing a car every two years. The same tax reliefs are available to organisations for qualifying activities, that is, the transport of those disabled who are covered by the scheme. The cost of the scheme has increased significantly in recent years. It came to approximately €35 million in 2002 compared to just under €6.5 million in 1996. The projected cost of the scheme is €37 million in 2003. It is estimated that some 8,350 people with disabilities are actively participating. The average claim for VRT and VAT relief amounts to approximately €5,250. This is what it is worth, on average, on an annualised basis to an individual beneficiary.

There are up to 360,000 persons in Ireland who could be regarded as disabled to some degree or other. These include both persons with medical conditions other than those covered by the scheme and those with medical conditions who are covered. The disabled drivers' and the disabled passengers' scheme carries substantial tax benefits.

The scheme was reviewed by an interdepartmental group chaired by an official from the Department of Justice, Equality and Law Reform. In addition to representatives from that Department, it had representatives from the Department of Finance, the Department of Health and Children, the Department of Social and Family Affairs and the Office of the Revenue Commissioners. The group, which has since reported, examined all aspects of the scheme, including the qualifying medical criteria.