Paul Gavan (Sinn Fein) | Oireachtas source

I thank the Minister of State, Deputy Rabbitte, for coming to the House. I want to highlight the appalling existing arrangements that apply to the charging of VAT on vehicles modified for the use of people with significant disabilities. These modifications are absolutely necessary and can only be made in countries outside Ireland.

I am delighted that we are joined in the Chamber by Ms Leigh Gath, an inveterate campaigner for equality for people with disabilities. Leigh is a thalidomide survivor born without arms or legs. She learned to drive at age 17 and has been driving since then. As a result of the significant disability arising from thalidomide, Leigh has always had to have her vehicles modified. That must be done in the UK because there is nobody in Ireland with the expertise to install the modifications. One can imagine Leigh's shock when she brought her new modified vehicle into Ireland at the end of October, having been approved for the disabled drivers and disabled passengers scheme, to be told she owed Revenue a further €23,100 before she could register her van. She has stated: "I was particularly shocked because the vehicle is my legs, my independence, as I live in rural Ireland, and I will be a prisoner in my own home without being able to drive."

The Minister of State and I both know this is part of a larger problem. In the UK, modified vehicles for people with disabilities are not subject to VAT. In Ireland, no other equipment needed for the independence of someone with a disability, such as a powered wheelchair, hoist or special bed, is subject to VAT. Why are vehicles for people who have been approved through the disabled drivers and disabled passengers scheme landed with VAT? As things stand, the greater the level of disability, the greater the amount of punishment dealt out by Revenue. How on earth can that be justified? Charging VAT on the modifications as well as the base price of the vehicle is especially harsh.

For the past couple of weeks, I have listened to Senators demanding an extension of the 9% VAT rate for the hospitality sector. They may have a point, but how can it be justified that hotel owners pay VAT at 9% while the Government expects Leigh and people like her to pay 23% on vehicles that allow them to be part of our society? Does this not go against all principles of equality and natural justice? Is not the current practice nothing more than a despicable rip-off targeting some of the most vulnerable people in our society?

The Minister for Finance has committed to a comprehensive review of the disabled drivers and disabled passengers scheme. The Minister for Children, Equality, Disability, Integration and Youth has agreed that this review should be incorporated into the work of the transport working group established under the national disability inclusion strategy. That group is chaired by the Minister of State, Deputy Rabbitte, which is why I particularly welcome her attendance today. The group held its final meeting on 8 December and expects to produce its report shortly. Will the Minister confirm when it will be published and whether it will deal comprehensively with the gross inequality of charging people with disabilities VAT on modifications to their vehicles? Is the Government content to continue to pay lip service to equality while allowing the appalling practice to continue of loading VAT charges onto the cost of the modification of vehicles for people with disabilities?

The Minister of State will have a script to read in response to my questions. However, she has always been straightforward and helpful to date in dealing with Commencement matters. I ask her not to kick to touch on this issue. People like Leigh have already been waiting far too long for answers. She is seeking a meeting with the Minister for Finance to discuss this issue and she would also really appreciate a meeting with the Minister of State. Perhaps the Minister of State will talk to Leigh, who has taken the time and trouble to come here from Limerick, after this debate.I look forward to the Minister of State's response.