Seanad debates

Wednesday, 10 December 2014

Finance Bill 2014: Committee Stage (Resumed)

 

2:10 pm

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Senator Kathryn Reilly for tabling this recommendation and for the opportunity it has provided to have an interesting discussion about this matter. Senator Paul Bradford is correct that it is an issue in which I have a personal interest. I will take up the challenge to discuss it with the Minister for Finance, Deputy Michael Noonan, and engage on it with some disability groups.

The disabled drivers and disabled passengers scheme plays an important role in enhancing the mobility of citizens with disabilities. However, Members will appreciate that the scheme also represents significant tax expenditure. Between the vehicle registration tax and VAT forgone, as well as the repayment of excise duty on fuel used by members of the scheme, it represented a cost of €43.5 million to the Exchequer in 2013. That figure does not include the revenue forgone to the local government fund from motor tax.

A member of the scheme is required to purchase a vehicle from an authorised person. This was initially provided for in the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994, SI No. 353/1994, to protect the State and the intended beneficiaries of the scheme. However, the Department is working with disability groups to improve the operation of the scheme without imposing an additional cost on the Exchequer.

One of the operational issues under review is the requirement to purchase a vehicle from an authorised person. This review is at an advanced stage and amended regulations will be presented to the Minister for Finance shortly. If he agrees that the authorised person provision no longer serves a useful purpose, he will remove it. As this issue is under review, Senator Kathryn Reilly will appreciate why I cannot accept her recommendation.

On expanding the eligibility criteria for the scheme to encompass those citizens with upper limb amputations, the current qualifying criteria are necessarily both strict and precise, relating only to very specific physical disabilities which present a serious challenge to a citizen’s mobility. The criteria encompass citizens with the following disabilities: persons who are completely or almost completely without the use of both legs; persons who are completely without the use of one of their legs and almost completely without the use of the other leg to the extent that the applicant is severely restricted as regards movement in his or her lower limbs; persons without both hands or both arms; persons without one or both legs; persons completely or almost completely without the use of both hands or arms and completely or almost completely without the use of one leg; persons with the medical condition of dwarfism and serious difficulties of movement of the lower limbs.

The Minister frequently receives appeals from applicants who do not meet the qualifying criteria but consider they could benefit from the scheme. In this time of constrained resources, the Minister is of the view that, given the scale and scope of the scheme, he does not intend to expand it further. Accordingly, he cannot accept this recommendation.

I understand Senator Thomas Sheahan has written to the Minister about aspects of the scheme and he will receive a response shortly. There is a benefit for those who purchase a second-hand car up to a certain limit. I am interested in engaging with the Senator further on these details.

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