Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 177: To ask the Minister for Finance the steps he is taking to provide a similar support to the fuel duty rebate scheme for passenger bus transport services which is being withdrawn; if his attention has been drawn to the impact this will have on the development of public transport, particularly in rural areas; and if he will make a statement on the matter. [27078/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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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, including school transport services. While the derogations expired on 31 December 2006, Ireland, along with other member states, sought retention of them beyond that date. The European Commission, which is the deciding authority, refused such requests. As the Deputy is aware, the Finance Act 2008 set out the legislative changes to withdraw the relief in respect of fuel used for public passenger transport vehicles. The relief will be withdrawn from 1 November 2008 and the appropriate full excise rates will apply from that date. In such circumstances, the question of reconsidering or deferring the withdrawal of the existing relief does not 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 to compatibility with competition and EU state aid requirements. While the matter is still being considered it is necessary to stress, despite the claims being made otherwise, that introducing an alternative suitable mechanism is not a straightforward matter.

Fergus O'Dowd (Louth, Fine Gael)
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Question 178: To ask the Minister for Finance the annual savings arising from the discontinuation, on 1 November 2008, of the fuel duty rebate scheme in respect of public transport vehicles; and if he will make a statement on the matter. [27135/08]

Fergus O'Dowd (Louth, Fine Gael)
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Question 179: To ask the Minister for Finance the cost of the fuel duty rebate scheme in respect of public transport vehicles for each month since January 2007 to date in 2008; and if he will make a statement on the matter. [27136/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 178 and 179 together.

The amount paid under the fuel duty rebate scheme for public transport vehicles in each month in 2007 and to date in 2008 is set out in the table that follows this reply. The cost of the relief under the fuel rebate scheme for public transport vehicles, in terms of excise foregone, is approximately €30 million per annum. As the Deputy is aware, 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, the derogations allowed inter alia for reduced rates to apply to fuel used for public transport services which includes school transport services. While the derogations expired on 31 December 2006, Ireland, along with other member states, sought retention of them beyond that date. The European Commission, who is the deciding authority, refused such requests. The Finance Act 2008 set out the legislative changes to withdraw the relief in respect of fuel used for public passenger transport vehicles. The relief will be withdrawn from 1 November 2008 and the appropriate full excise rates will apply from that date. In such circumstances, the question of reconsidering or deferring the withdrawal of the existing relief does not 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 to compatibility with competition and EU state aid requirements. While the matter is still being considered, it is necessary to stress, despite the claims being made otherwise, that introducing an alternative suitable mechanism is not a straightforward matter.

Excise on fuel repaid in respect of public transport vehicles in each month since January 2007: