Eamon Ryan (Dublin South, Green Party)
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Question 161: To ask the Minister for Finance his views on alteration of the tax system to encourage travellers to use eco-friendly modes of travel, that is, the incentivisation of such travel through reduced costs and tax breaks. [8579/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As the Deputy may be aware, there are a number of tax incentives in place to encourage the use of public transport as follows. A scheme was introduced in the Finance Act 1999 which provides exemptions from benefit-in-kind taxation for employer-provided bus and rail passes. This has since been extended to cover travel on the Luas and, in this year's Finance Bill, I am proposing to extend it to cover passes on commuter ferry services operating within the State. Under the park and ride scheme, various capital allowances are available in respect of qualifying expenditure incurred on park and ride facilities in the larger urban areas. The scheme commenced on 1 July 1999 and is due to terminate on 31 July 2006. Diesel trains and certain passenger road services benefit from lower rates of excise.

Other recent eco-friendly initiatives in the transport area include: an excise differential for sulphur free fuel proposed in Finance Bill 2005; the extension until end-2006 of the scheme which provides a 50% refund on vehicle registration tax on the purchase of 'hybrid' vehicles, which have lower emissions than standard vehicles; a scheme of excise relief for biofuels in pilot projects, including testing of biofuels for use as motor fuel.

As regards reduced costs, the Deputy may be aware that the subvention for public transport in 2005 is expected to be €284 million, while proposed capital investment in public transport in 2005 amounts to €426 million.