Dinny McGinley (Donegal South West, Fine Gael)
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Question 180: To ask the Minister for Finance if his attention has been drawn to the difficulties created for public transport operators, particularly in rural areas, with the ending of the excise fuel rebate in recent weeks; his plans to replace this rebate; the assistance he intends giving these companies to enable them to continue providing bus services, particularly for rural and peripheral areas; and if he will make a statement on the matter. [42364/08]

Willie Penrose (Longford-Westmeath, Labour)
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Question 197: To ask the Minister for Finance the steps that have been taken by his Department to put in place an internal mechanism for transport operators to replace the excise duty refund for public transport services, which terminated on 31 October 2008 and in view of assurances given if same has now been attended to and a scheme worked out with the relevant Departments to put in place an appropriate alternative refund mechanism, which would comply with EU legislation and which is operated with other EU member states; and if he will make a statement on the matter. [42720/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 180 and 197 together.

As the Deputies are aware, the fuel duty rebate was withdrawn with effect from 1 November 2008 following the ending of a special derogation under the EU Energy Tax Directive 2003. A similar situation affects all Member States who had derogations under the Directive. The Department of Transport and other relevant Departments, in conjunction with my Department, examined and considered alternative options at length. In the end, it was not found feasible to introduce an alternative non-tax scheme on a cost-neutral basis and within EU rules.

However, in general recognition of the pressures being experienced by public transport providers and road hauliers it was decided not to increase excise on diesel fuel, for the fifth consecutive Budget. In addition, despite our present difficult Budgetary conditions, I have been able to continue to provide very considerable resources to the Minister for Transport for public bus services throughout the country.