David Stanton (Cork East, Fine Gael) | Oireachtas source

I thank the Senator for raising this matter in the House today. The Minister for Finance sends his apologies. He is answering oral questions in the Dáil so he cannot be here.

The Minister for Finance has asked me to let the House know the following. The disabled drivers and disabled passengers (tax concessions) scheme provides relief from VAT and vehicle registration tax, VRT, up to certain limits, an exemption from motor tax, and a grant in respect of fuel on the purchase of an adapted car for the transport of a person with specific, severe and permanent physical disabilities.

To qualify for the scheme an applicant must be in possession of a primary medical certificate. To qualify for a primary medical certificate an applicant must be permanently and severely disabled within the terms of the Disabled Drivers and Disabled Passengers (Tax Concessions) Regulations 1994 and satisfy one of the following conditions as mentioned by the Senator: be wholly or almost wholly without the use of both legs; be wholly without the use of one leg and almost wholly without the use of the other leg such that the applicant is severely restricted as to movement of the lower limbs; be without both hands or without both arms; be without one or both legs; be wholly or almost wholly without the use of both hands or arms and wholly or almost wholly without the use of one leg; or have the medical condition of dwarfism and have serious difficulties of movement of the lower limbs.

The senior medical officer for the relevant local HSE administrative area makes a professional clinical determination as to whether an individual applicant satisfies the medical criteria. A successful applicant is provided with a primary medical certificate which is required to claim the benefits provided for in the regulations. An unsuccessful applicant can appeal the decision of the senior medical officer to the Disabled Drivers Medical Board of Appeal, DDMBA, which makes a new clinical determination in respect of the individual. The regulations mandate that the DDMBA is independent in the exercise of its functions to ensure the integrity of its clinical determinations. After six months, a citizen can reapply if there is a deterioration in his or her condition.

The scheme represents significant tax expenditure. Between VRT and VAT forgone and the fuel grant the scheme, cost has risen from €50 million in 2013 to €65 million in both 2016 and 2017, increasing further to €70 million in 2018. This figure does not include the revenue forgone in respect of the relief from motor tax provided to members of the scheme.

The disability criteria for the tax concessions available under the scheme have changed over time. When the scheme was first introduced in 1968, the legislation only allowed for one medical ground. In 1989, four new medical grounds were added, and in 1994, one new medical ground was added.

The Minister for Finance also reminds the House that the scheme was examined in 2015 to target the available resources at those most in need of the scheme. This resulted in the creation of a new category of vehicle called the "extensively adapted vehicle", allowing claims of up to €22,000 where cost of modifications exceed the cost of the vehicle itself. Further in 2018, access to the scheme for charitable organisations was significantly broadened by removing the requirement for 50% of the people availing of the scheme to hold primary medical certificates. The Minister has no plans to change the current criteria for the scheme or to make any further changes to the scheme.