Pádraic McCormack (Galway West, Fine Gael)
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Question 64: To ask the Tánaiste and Minister for Finance the steps he will take to compensate private bus operators regarding the removal of the refund of excise duty on fuel which amounts to 0.34533 cent per litre; the reason the private bus operators were not made aware when this tax rebate expired in December 2006 despite the fact that the Government was aware of the situation and that private bus operators had signed school contracts and other contracts set at a level for 2008 without this knowledge that the rebate was to be removed; the further reason bus operators were discriminated against compared to Bus Éireann which apparently were made aware that the rebate was removed; and if he will make a statement on the matter. [30352/07]

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.