Michael Lowry (Tipperary North, Independent)
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Question 211: To ask the Minister for Finance the measures he is taking to secure a continuation of the EU Derogation under EU Directive (2003/96/EC); if he has assessed the impact of the removal on this derogation on the affected industries; and if he will make a statement on the matter. [16996/06]

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 stressed the importance of these derogations to specific sectors. Consequently the Deputy should note that the Government will seek to ensure that the users/sectors involved should not be adversely affected.