Robbie Gallagher (Fianna Fail)
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I welcome the Minister of State. This is the first opportunity I have had to congratulate him on his promotion and wish him well in his new role.

I refer to the new travel-mileage expenses rate which took effect for all public servants on 1 April this year. The new rate was negotiated by the Civil Service unions with the Department of Finance. It had the added dimension of the Haddington Road agreement in which the unions and employers came up with a new rate and method of calculating mileage expenses incurred by public servants. Across the public service those most acutely affected are members of State boards and county councillors.I was disappointed to learn from those bodies that no consultation took place on this issue with the representative bodies, either the Local Authority Members Association, LAMA, or the Association of Irish Local Government, AILG.

The new rate for travel expenses differs from the old one in that there are four different categories as opposed to two heretofore. One significant effect of the new rates is that for the first 1,500 km a year that a claimant might travel, the rate drops from 0.6088 per kilometre down to 0.4479 per kilometre which results on a return journey in a drop of approximately 26%.

In practical terms, as I stated earlier, those most affected by this will be local authority members who would struggle to get up to 1,500 km through any group they might form part of, whether that be an education and training board, ETB, or a health fora. Members of the north-east health forum who would travel to a meeting in Kells would leave Monaghan town, for example, at 12 o'clock for a meeting at 2 p.m. and would not be back home again until 6 p.m. - that is six hours. Many of them will find it difficult to afford to be able to go to that type of meeting, which is disappointing bearing in mind that it is important, for example, on a health forum, that we have community voices heard. This makes it more difficult.

I suppose a disappointing aspect of it as well is that when one considers this along with other cuts that local authority members have experienced in recent times, it makes the role of the county councillor that more difficult. Indeed, in my own constituency, Cavan-Monaghan, in the past couple of weeks we had two councillors resign purely because they are holding down full-time jobs and were finding it impossible to manage the two.

It would be difficult to get a single arrangement with Revenue and whoever for county councillors on this issue, but I would ask if that could be looked at. More importantly, we need to look at the issue of terms and conditions for local authority members in the round, and this will form part of it. We need to make it more attractive for local authority members to carry on and not resign because we depend on them to be the voice of the community in the future.

Michael D'Arcy (Wexford, Fine Gael)
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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.

Robbie Gallagher (Fianna Fail)
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I thank the Minister of State for his response. I note that the rates will be up for review again in three years' time. If it is possible during that time, consultation with the two representative bodies for local authority members, the Local Authority Members Association and the Association of Irish Local Government, would be welcome. As I said, while I am sure it was not designed as such, those who struggle to reach 1,500 miles will be the worst affected. I, therefore, ask that, in the round, when the Minister of State is talking to his Government colleagues, the position of local authority members be kept in mind at all times.

Michael D'Arcy (Wexford, Fine Gael)
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I will certainly do that for the Senator.

Denis O'Donovan (Fianna Fail)
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I thank the Minister of State and the Senator.