John Deasy (Waterford, Fine Gael)
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Question 161: To ask the Tánaiste and Minister for Finance the discussions that have taken place between his Department and the Department of Transport regarding the removal of the refund of excise duty on fuel for passenger transport services; the cost to the Exchequer for this scheme in each of the past five years; the alternatives his Department has discussed; and if he will make a statement on the matter. [29916/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy may recall that I have answered Parliamentary Questions on this issue over the past year, including on 4 July 2007 and in recent weeks. 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, the 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 their derogations beyond that date. However the European Commission, which is the deciding authority, has to date refused all such requests. The Commission maintains 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 on 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 which 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. I am informed by the Revenue Commissioners that the information available on the repayments made under the Passenger Road Services Scheme between 2002 and 2006, is as follows: