Seanad debates

Thursday, 20 February 2014

Adjournment Matters

Haulage Industry Regulation

2:10 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Gabhaim buíochas don Seanadóir as ucht na ceiste seo a chur faoi bhráid an tSeanaid. Tá me ag tabhairt freagra thar cheann an Aire Iompair, Turasóireachta agus Spóirt, an Teachta Varadkar. Mar a dúirt an Seanadóir, tá cruinniú aige inniu leis an Aire i Sasana.

Since 1999 various EU directives have set common rules on distance related tolls and time-based user charges for heavy goods vehicles for the use of certain roads infrastructure. It is open to any state to introduce road user charges if it wishes.

The new road user levy, which is being introduced by the UK Parliament as opposed to the Northern Ireland authorities, applies to all HGVs weighing 12 tonnes or more for use of UK roads, including those in Northern Ireland. The levy will come into effect on 1 April 2014.

The concept of the scheme is that all HGVs over 12 tonnes, including those that are UK-registered, pay the charge. UK-registered HGVs will also get a reduction in their annual motor tax which is more or less equivalent to an annual charge, which they are charged for and pay annually with their motor tax.

The Minister for Transport, Tourism and Sport, Deputy Varadkar, is very aware of the concerns of the Irish haulage industry regarding the introduction of a HGV road user levy by the UK authorities. On a number of occasions he has strongly expressed his concerns to both the UK and Northern Ireland authorities regarding the impact the levy will have on Irish hauliers. Furthermore, he has strenuously sought exemptions for roads in Northern Ireland to reduce the impact of the levy on Irish hauliers on the basis of the Irish Government's contribution towards the cost of roads infrastructure in Northern Ireland. The issue has also been discussed at transport sectoral meetings of the North-South Ministerial Council.

The Minister is in the United Kingdom where he has met Stephen Hammond MP, Parliamentary Under-Secretary of State for Transport, and he again pressed the issue at the meeting. Clause 3 of the UK HGV Road User Levy Act 2013 allows the Secretary of State to vary the extent of the scheme by order. The UK has proposed to include approximately seven miles of cross-Border road between the Republic and Northern Ireland. This would allow all operators to use these stretches of road without paying the levy, as it would be a breach of EU legislation to grant an exemption to just one country. In this context the Minister, Deputy Varadkar, has sought an exemption for the A5, which is often used by operators starting a journey in the Republic to deliver goods to another location in the Republic and transiting the A5 during the operation. He also emphasised that Ireland has contributed £20 million to the A5 and has committed a further £50 million. He expressed the fact that he felt it was unreasonable that we contributed to the cost of a significant piece of infrastructure yet our hauliers are now expected to pay for it. Both Ministers agreed that further consideration would be given to exemptions by officials of their Departments.

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