Gerard Murphy (Cork North West, Fine Gael)
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Question 247: To ask the Minister for Finance the cost effect which the expiry of derogations from EU Directives (details supplied) will have on energy users; and the sectors which will be effected. [16336/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Under the EU Energy Tax Directive — 2003/96/EC — Ireland, together with virtually all other Member States, has a number of derogations, which are set to expire at the end of this year. These derogations, effectively exemptions from the requirement to apply EU minimum and maximum excise tax rates, are varied in nature. For example, they include the tax reliefs which apply under the Disabled Drivers Scheme, reduced excise applying to fuel used in public transport, and reduced rates applying to private boating.

The European Commission has commenced communications with Member States, including Ireland, in connection with the post-2006 position with respect to these derogations. In this regard, we have stated our desire to retain these derogations for public policy reasons and consequently the Deputy should note that the Government will seek to ensure that the users/sectors involved should not be adversely affected. I am not in a position to put forward an appropriate costing at this stage in respect of the costs involved if the derogations were to expire.