Seanad debates

Thursday, 20 February 2014

Adjournment Matters

Haulage Industry Regulation

2:00 pm

Photo of Michael MullinsMichael Mullins (Fine Gael)
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I welcome the Minister of State, Deputy O'Dowd.

Photo of Brian Ó DomhnaillBrian Ó Domhnaill (Fianna Fail)
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Cuirim fáilte roimh an Aire Stáit. Baineann an cheist atá á ardú agam inniu leis an táille de £10 in aghaidh an lae, nó £1,000 sa bhliain, atá le gearradh ar thrucailí a bheidh ag taisteal ar bhóithre Tuaisceart na hÉireann. This charge, which is being proposed on foot of British legislation, will apply to trucks that are registered outside England, Scotland, Wales and Northern Ireland when they travel on all British roads, including roads in the North of Ireland. It will mean that a £10 daily fee, or a £1,000 annual fee, will apply to Irish trucks when they travel on roads in the North. This will have a devastating effect on many Irish haulage companies that use HGVs over a certain tonnage. It will have a substantial impact on trucks in the Border counties, including the Minister of State's county of Louth. It will have a particularly significant effect on County Donegal, given the nature of the geography of the north west. Trucks that travel between Donegal and Dublin will be severely penalised as a result of this additional charge.

It does not make sense. It will affect businesses and jobs and it will increase the cost of goods moving in and out of areas.

I wish to raise the matter with the Minister today. An urgent meeting is required between the Minister for Transport, Tourism and Sport and his British counterpart. I understand that a meeting may have taken place today. Perhaps the Minister of State can enlighten the House on whether the issue was on the agenda of that meeting. Has it been discussed? What attempts are being made by the Irish Government to deal with the issue? Has an amnesty been sought for trucks from the Twenty-six Counties when they travel into the North?

The new charge does not make sense. We must protect the haulage business and accompanying jobs. Not only that, the cost of consumer goods will also be affected. The Government is aware of the situation as the issue has been raised previously. I hope it is making progress and will have the matter dealt with as quickly as possible.

2:10 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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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.

Photo of Brian Ó DomhnaillBrian Ó Domhnaill (Fianna Fail)
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I thank the Minister of State for his helpful response. I can see that progress is being made. I wish to highlight the fact that the charge is due to be introduced on 1 April so it is a pressing matter. I know that the Minister of State is aware of the matter because he comes from a Border county and I thank him for his response. We all have a role to play in trying to progress the matter as much as we can. I hope that the discussions that have been initiated will prove fruitful. Go raibh maith agat.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I thank the Senator for his comments and I shall relay them to the Minister.