Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 152: To ask the Tánaiste and Minister for Finance the annual figure refunded in each of the past five years for excise duty paid on fuel used in passenger transport services to the public transport services with the names of same and the private transport providers; his intentions in Budget 2008 or by other means, to compensate the passenger transport sectors for the anticipated loss of this refund entitlement following the ending of the derogation from the EU Energy Tax Directive; and if he will make a statement on the matter. [30324/07]

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 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. Details of the tax relief granted to particular taxpayers are confidential between the Revenue Commissioners and those taxpayers. However, I am informed by the Revenue Commissioners that the following table provides the overall repayments made under the Passenger Road Services Scheme for the years 2002 to date: