Seanad debates

Thursday, 21 March 2013

Finance Bill 2013 [Certified Money Bill]: Committee and Remaining Stages

 

3:10 pm

Photo of Trevor Ó ClochartaighTrevor Ó Clochartaigh (Sinn Fein) | Oireachtas source

While I broadly support the amendment, I have a number of questions. Has this measure been costed by the Department? What would it cost the Exchequer to introduce the proposed scheme? We heard examples of larger, multinational companies transporting and using their own transport sections for haulage purposes. A number of smaller Irish companies, notably in the food sector, which use their own transport to deliver goods are struggling. This scheme will make it more difficult for them to compete. One could contend that large companies will conclude it is preferable to hire in licensed hauliers to deliver their goods because they will receive a rebate that is not available to businesses that use their own transport. This may result in a shift towards larger companies using outside firms to do their haulage in order that they can avail of the tax break. Such a scenario will have a knock-on effect on transport jobs within large companies. If the saving is not significant, it may transpire that one is robbing Peter to pay Paul.

I appreciate the Government does not have sufficient resources to extend the scheme. However, achieving a short-term saving may result in a greater loss down the line as jobs are lost among those employed directly by companies to transport goods. If company X lets go of its drivers, gets rid of its trucks and hires in a licensed haulier to do its deliveries, the Government will end up paying the rebate to the licensed haulier. It would make good business decision for a company to use an outside company. The quid pro quo for this scheme may not be delivered. I am interested in learning the precise figures associated with it.

Comments

No comments

Log in or join to post a public comment.