Brian Ó Domhnaill (Fianna Fail)

I raised the issue of the fuel rebate scheme previously in the Seanad on 15 November 2007. The reason I raised it then is the same reason I raise it this evening. It is the approximately 2,200 private bus operators in Ireland who have an aggregate bus fleet of more than 5,000. That is almost double the number of vehicles operated by Dublin Bus and Bus Éireann combined. The Minister of State, Deputy Noel Ahern, discussed this issue in the course of a recent transport committee meeting which I attended.

On 1 November 2008, the financial assistance which bus operators received from the Government in the form of a fuel excise duty rebate was ended. This has caused pain to many operators throughout the country. Obviously, I am concerned about this following the representations I have received from bus operators in Donegal, which is why I raise the matter this evening. Until now the fuel rebate scheme enabled bus operators to recoup some of the costs incurred in the provision of qualifying transport activities, such as school transport, scheduled services and qualifying coach tours and activities. These services are the backbone of the coach industry and are essential to the daily functioning of communities throughout the country.

The Coach Tourism and Transport Council has been actively engaged with the Department of Transport on this issue and has made a number of suggestions. Fáilte Ireland also commissioned Goodbody Economic Consultants to find an alternative mechanism to support the industry. Goodbody Economic Consultants subsequently came forward with an innovative and well thought out alternative proposal which would be easily administered and in line with overall Government policy to reduce car dependency and encourage greater use of public transport.

There is European legislation governing this area and the current position is the result of a European directive. However, I appeal to the Minister of State to re-examine this issue. A number of operators in Donegal were heavily dependent on this scheme to function. Over the years they have taken on employees but they might now be faced with the prospect of letting some of them go. The scheme allowed bus operators to expand their services, it supported the employment they were providing and allowed them to stay in touch with the heavily subsidised CIE services. The majority of transport services in County Donegal are provided by the private sector. For that reason the Minister of State should review this issue if possible.

Obviously, the Minister of State will have more information than me on this matter. It was necessary to raise the matter this evening in view of the concern that bus operators who are engaged in the school transport and coach and tourism services have relayed to me. I raise it on their behalf in the hope that some mechanism can be found to initiate a new scheme or funding mechanism to allow the operators continue the services they have provided to date.