Mattie McGrath (Tipperary South, Fianna Fail)
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Question 140: To ask the Tánaiste and Minister for Finance the reason private bus operators were not made fully aware that the fuel rebate on scheduled services within the State was being withdrawn; and if he will introduce a new grant or scheme to replace it. [30062/07]

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, 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, 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.