Written answers

Thursday, 23 January 2014

Photo of Pádraig Mac LochlainnPádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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52. To ask the Minister for Finance if his attention has been drawn to the fact that under the terms of the new diesel rebate scheme, private forecourt fuel retailers are going to lose significant volumes of their sales as they are ineligible under the strict conditions of the scheme unless they have a fuel card system in place; the knock on effect on fuel distributor businesses; and the measures he intends to take to immediately address these anomalies. [3367/14]

Photo of Pádraig Mac LochlainnPádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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53. To ask the Minister for Finance if his attention has been drawn to the fact that those fully tax compliant and legitimate road transport operators, who do not purchase their diesel through a fuel card or through bulk deliveries over 2,000 litres, cannot avail of a diesel rebate under the new diesel rebate scheme; and the measures he intends to take to address this anomaly that will cost a large number of small existing businesses and start up businesses thousands of euro each year. [3368/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 52 and 53 together.

I introduced this scheme under the Finance Act 2013 to provide for a repayment of part of the mineral oil tax paid on the purchase of auto-diesel used in the course of business by qualifying road haulage and bus operators. Provision was made for certain restrictions on the means by which the auto-diesel concerned may be purchased to address the risk of abuse of the scheme. In order to qualify for the repayment, the auto-diesel must be purchased by the qualifying road transport operator, either in bulk (a quantity over 2,000 litres), or by means of a fuel card approved by Revenue for that purpose. Purchases in bulk must be made from a licensed mineral oil trader, and delivered to a premises or place that is under the control of a qualifying road transport operator.

These provisions are necessary for the management and control of the repayment scheme by Revenue. Bulk purchases from licensed mineral oil traders can be verified by reference to the monthly electronic returns that licensed mineral oil traders are required to make under Revenue's fuel supply chain controls. Revenue will only approve a fuel card where they are satisfied that the fuel card provider will supply them with the information required by Revenue about purchases of auto-diesel by means of that card. Revenue would not have access to this information for fuel purchased at the pump by means other than a fuel card. There are a number of fuel card providers who can supply suitable fuel card services to road transport operators and forecourt operators. The scheme was the subject of considerable discussion with the haulage sector and I believe the current arrangements strike the right balance between facilitating the legitimate haulage sector and preventing fraudulent claims. Revenue will monitor the scheme closely and will continue to engage with the sectors involved.

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