Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

Question 197: To ask the Tánaiste and Minister for Finance if he will make a statement on a matter (details supplied). [8889/08]

Dan Neville (Limerick West, Fine Gael)
Link to this: Individually | In context

Question 198: To ask the Tánaiste and Minister for Finance if he will make a statement regarding the Energy Tax Directive 2004; and the position regarding fuel rebate for school services. [8920/08]

Noel Ahern (Dublin North West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 197 and 198 together.

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, has refused all such requests.

Consequently, as the Deputy may be aware, the Finance Bill 2008 includes the legislative changes to withdraw the relief in respect of fuel used for public passenger transport vehicles. The relief will be withdrawn with effect from 1 November 2008 and the appropriate full excise rates will apply from that date.

However, the Department of Transport and other relevant line Departments are, in conjunction with my Department, exploring alternative mechanisms that may be used to direct Exchequer resources toward such services from that date, subject of course to compatibility with EU State Aid requirements.