Joe Costello (Dublin Central, Labour)
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Question 160: To ask the Minister for Finance if he will respond to correspondence from a company (details supplied); and if he will make a statement on the matter. [25252/08]

James Reilly (Dublin North, Fine Gael)
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Question 166: To ask the Minister for Finance if he will report on undertakings given by An Taoiseach when he was Minister for Finance that his Department was exploring alternative mechanisms that could be put in place to replace the soon to be terminated excise duty refund for public transport service operators, which amounts to 34.5 cent per litre; the outcome of those explorations; if a method has been found to alleviate the burden of the removal of the excise duty refund scheme for public transport providers; and if he will make a statement on the matter. [25333/08]

Joan Burton (Dublin West, Labour)
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Question 167: To ask the Minister for Finance if his attention has been drawn to the fact that the excise duty refund for public transport services, which amounts to 34.5 cent per litre, is scheduled for termination on 31 October 2008 and that his predecessor gave public assurances that line Departments would explore in conjunction with his Department an alternative mechanism to put in place to replace the refund; the progress of these discussions; if he will commit to ensuring that such a mechanism is in place before the termination of the aforementioned refund scheme; and if he will make a statement on the matter. [25341/08]

Brian O'Shea (Waterford, Labour)
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Question 168: To ask the Minister for Finance the progress that has been made in regard to exploring alternative mechanisms to replace the excise duty refund for a public transport service (details supplied); and if he will make a statement on the matter. [25423/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 160 and 166 to 168, inclusive, 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 inter alia 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, refused such requests.

The Finance Act 2008, as the Deputies are aware, consequently provided 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. In the circumstances outlined above the question of reconsidering or deferring the withdrawal of the existing relief does not therefore arise.

The Department of Transport and other relevant line Departments have, in conjunction with my Department, explored alternative mechanisms that might be used to direct Exchequer resources toward such services from that date, subject of course to compatibility with competition and EU State Aid requirements. While the matter is still being considered it is necessary however to stress, despite the claims being made otherwise, that introducing an alternative suitable mechanism is not a straightforward matter.