Seanad debates
Thursday, 26 January 2023
Nithe i dtosach suíonna - Commencement Matters
Tax Reliefs
9:30 am
Mary Seery Kearney (Fine Gael)
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I am delighted to welcome the Minister of State at the Department of Finance, Deputy Jennifer Carroll MacNeill. Her appointment is well deserved.
Martin Conway (Fine Gael)
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Cuirim fáilte roimh an Aire Stáit. It is wonderful to welcome the Minister of State on her first visit to the Seanad in her new role. The issue I have submitted as a Commencement matter is an important one. There is a scheme for persons with disabilities who have a primary medical certificate to claim back VRT and VAT or have them waived as a driver or passenger. The scheme is also open to charities. The current limits are €10,000, €16,000 and €22,000. The €10,000 limit applies to drivers and the €16,000 limit applies to passengers. The problem is that we are moving to hybrid and electric vehicles. These are considerably more expensive than petrol and diesel vehicles. That said, petrol and diesel vehicles are getting more expensive as well. The scheme needs to be reviewed in any case, outside of the climate commitments that the Government has made. People incur a significant expense in adopting hybrid or electric vehicles. The unintended consequence of the commitment the Government has made to moving towards hybrid and electric vehicles is that it creates inequality. It makes it more expensive for people with disabilities who are more in need of support and resources than most other groups in society.
The scheme needs to be changed as a matter of urgency. While it is a good scheme, it is not good if it does not include everybody who needs it.I encourage the Minister of State at the earliest opportunity, working in her new role with the Ministers, Deputies Michael McGrath and Donohoe, to bring this scheme up to date so people with disabilities who are climate-conscious are not discriminated against and are in a position to avail of the scheme and the benefits it is designed to give. I am looking forward to hearing the Minister of State's reply and appreciate her coming to the House to take the matter today.
Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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I thank the Senator for raising this important matter. Something I am deeply interested in since coming into the Department is the way in which our tax structures can be of assistance to anybody who needs additional assistance, such as the disabled drivers or passengers community. I agree that the scheme needs to be reviewed, including from the perspective of accessibility to the scheme. I am not sure it is as open as it could be for the range of people with different levels of disability who need different types of support. We could look at it in a more holistic way.
As the Senator is aware, the disabled drivers and disabled passengers scheme provides relief from vehicle registration tax, VRT, and VAT on the purchase of an adapted car as well as an exemption from motor tax and an annual fuel grant. This scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, as the Senator has said, the applicant must hold a primary medical certificate, PMC, issued by the relevant principal medical officer, or a board medical certificate issued by the Disabled Drivers Medical Board of Appeal. To qualify for such a certificate, an applicant must meet one of six specified criteria as specified in the Finance Act 2020. As the Senator is aware, to qualify for the relief, the vehicle must be specifically constructed or adapted for use by the PMC holder as a disabled driver or, where being transported as a disabled passenger, by a family member or organisation.
I spoke to the Minister of State, Deputy Rabbitte, who was just in the House on a different matter, about this last night in advance of speaking with the Senator today. I know she has conducted an ongoing review and the Department of Finance has been involved with that also. It is about examining the threshold at which a person might qualify for relief. It may be that there are groups of people who do not meet the current threshold but who might qualify for something less than the parameters that have currently been set. It is important that Government look at this in a more holistic way rather than leaving the threshold just as high in every circumstance.
The limit of VRT and VAT reliefs at the moment depends on the PMC holder and the adaptations made to the vehicle. Disabled drivers can receive up to €10,000 for adaptations to the vehicle, which can include installing hand controls, for example, or up to €16,000 if making certain more specific adaptations. Disabled passengers can receive up to €16,000 for adaptations and organisations, as the Senator is aware, can receive up to €16,000 for relevant adaptations if transporting five or fewer PMC holders.
This matter is under review between the Department of Health and the Department of Finance. The Senator's intervention is extremely timely in that regard from the perspective of electric vehicles but also in respect of opening the scheme in a more holistic way to people at different levels of need who might require different levels of support.
Martin Conway (Fine Gael)
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I thank the Minister of State for her reply. I welcome the fact that this issue is being reviewed. However, reviews can often take a significant length of time. In this case, the review needs to be short and snappy. As an aside, if I may, when firsts happen they should be acknowledged. I am here 12 years next April and it is the first time a Minister has ever contacted me to know what font I would like the reply in. Not alone does the Minister of State get equality but she gets disability. I thank her for that.
Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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I thank the Senator. It is important to be consistent in every respect. The Senator is completely right about the timing of the review. Having spoken to the Minister of State, Deputy Rabbitte, last night, I know that a number of meetings were held during 2022 and a draft final report was considered on 8 December. This really is very timely. The main conclusion of that report is, as the Senator has said, that the scheme needs to be replaced with a fit-for-purpose, needs-based vehicular adaptation scheme in line with best international practice. Additional costs to purchase and adapt a vehicle, specifically for example for wheelchair accessibility, accord with a range of different international examples.
Our current scheme is not fit for purpose. Since the 1960s the scheme has been subject to a series of very limited and disparate ad hoc changes which have added layer upon layer of administrative complication. I do not believe enough has been done to assist a considerable number of people with mobility or other sensory issues, which were not considered at that time.
This Commencement matter is extremely timely. Let us see what the report says when it is published. Any change or expansion of the eligibility criteria will still require an individual to prove that they meet the criteria. We need to look at a better needs-based approach that addresses mobility and sensory issues in a much more thoughtful and holistic way.
Mary Seery Kearney (Fine Gael)
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I applaud the Minister of State for her sensitivity to Senator Conway's requirements on font. I thank the Senator for calling that out and appreciating it. We are all learning on a daily basis. It is very welcome that the Minister of State is noting the issue of accessibility to the scheme. People like amputees do not have access to it despite their need.