Richard Bruton (Dublin North Central, Fine Gael)
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Question 66: To ask the Tánaiste and Minister for Finance if his Department has assessed the impact of the ending of fuel rebates on certain transport activities; and if he will make a statement on the matter. [29094/07]

Tommy Broughan (Dublin North East, Labour)
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Question 68: To ask the Tánaiste and Minister for Finance if he has removed the refund of excise duty on fuel used in passenger transport services apparently due to the EU energy tax directive; the reason the private passenger transport sector alleges it was not informed of the change before setting fares and contract charges for 2008; and the action he will take on the matter. [29146/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 66 and 68 together.

The Deputies may recall that I have answered Parliamentary Questions on this issue over the past year, including on 4 July 2007. The 2003 EU Energy Tax Directive incorporated special derogations which allowed specific excise duty reliefs to be applied in a number of Member States. In the Irish context, these derogations allowed for reduced rates to apply to fuel used for public transport services which includes school transport services.

While these derogations expired on 31 December 2006, Ireland, along with other Member States, sought retention of its derogations beyond that date. However the European Commission, who are the deciding authority, have to date refused all such requests. The Commission maintain that, in keeping with the EU Energy Tax Directive, Member States must apply at least the EU minimum rates of excise on fuels in such circumstances and that any further favourable excise treatment is not allowable. In this regard the Commission's decision was published to its website in March 2007. At the Commission's behest my officials have indicated that Ireland will avail of the forthcoming Finance Bill to make the necessary legislative changes to conform with the Directive.

In the circumstances, the relevant line Departments who have primary responsibility in this regard are, in conjunction with my Department, exploring alternative non-tax support mechanisms that could be put in place where appropriate to maintain the assistance currently being provided, subject of course to compatibility with EU State Aid requirements. In the interim the reduced rates applicable to fuel used will be maintained.