Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The mileage rates are designed to reimburse an officer for the costs incurred in using his or her own car on official business. The rates are set based on a methodology agreed with the staff associations. The methodology takes account of both overhead costs, such as car cost and insurance, and also running costs such as fuel costs and maintenance.

Under the Haddington Road agreement, a commitment was given to review the travel and subsistence arrangements in the public service. As part of this review, discussions on the motor mileage rates took place between Department officials and the staff associations from autumn 2015.

As the Senator will be aware, the formula underpinning the motor mileage rates was reviewed this year with a view to reflecting increased efficiencies and improvements in motor technology. The revised rates are based on an agreed methodology that reflects changes in technology, road conditions, commuter behaviour and car ownership patterns.

Some of the key changes of this review involved the following: an increase in the number of distance bands, from two to four, allowing a more nuanced reimbursement regime focused on officers who do significant work-related driving; a lower recoupment rate for the first 1,500 km; an increased recoupment rate from 1,501 km to 5,500 km focussed on officers who do such longer work-related driving; more beneficial reimbursement rates for cars with lower engine sizes and emissions; and the formula for calculating mileage now assumes an officer replaces his or her car every four years rather than every three years.

This changed the way the mileage bands are structured. Under the previous system, officers moved to a lower mileage rate after they had travelled 4,000 miles. Part of the focus of the review was to ensure that those officers who undertake significant work-related driving are adequately compensated for using their own car for official business. In order to allow this, it was deemed necessary to designate an initial mileage period where recoupment costs were lower.

In December 2016, Department officials and the staff associations met the adjudicator under the Civil Service conciliation and arbitration scheme to determine the upper threshold for the first distance band. The adjudicator determined that 1,500 km was appropriate.This was accepted by the parties. Although the revised rates were introduced in April, it was agreed that mileage accumulated by officers from January to March could count in using the new banding system. As such, officers who accumulated mileage during the period would be closer to reaching band 2. The Senator may wish to note that the revised arrangements provide for more beneficial reimbursement rates for cars with lower engine sizes and emissions. For an officer driving a car with an engine size of less than 1,200 cc, there is only a nominal reduction of up to €16 per annum in comparison with previous rates.

The Senator may wish to note that it is intended to review the motor travel rates after a period of three years in 2020.