Luke Flanagan (Roscommon-South Leitrim, Independent)
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192. To ask the Minister for Transport, Tourism and Sport if his attention has been drawn to the new HGV road levy which has come into effect on the 1 April, 2014 in the UK and Northern Ireland; if his attention has been drawn to the impact that this levy will have on haulage companies and other HGV users; if he is aware that due to the very high road tax on HGV vehicles in Ireland and the new HGV road levy, that many companies are now moving to Northern Ireland and that this will result in a significant loss of revenue to the State; and if he will make a statement on the matter. [16902/14]

Leo Varadkar (Dublin West, Fine Gael)
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I am very aware that the UK HGV road user levy is a cause of considerable concern for Irish HGV operators.  I have had extensive discussions with my UK and Northern Ireland counterparts on the matter and have made representations to the UK authorities to completely exempt certain significant sections of Northern Ireland roads infrastructure from the levy, as it is not possible under EU law to have an exemption for just one country.  My Department officials and I are committed to pursuing this issue to the fullest possible extent and are working closely with Northern Ireland Environment Minister Durkan’s office on our representations to UK Minister Hammond to exempt the A5 corridor for HGV traffic travelling to and from destinations in Ireland.   

The Taoiseach raised this issue at his recent bilateral meeting with Prime Minister David Cameron, and I understand Deputy Joe McHugh met Northern Ireland Secretary Theresa Villiers lately to discuss this issue as well.  In addition, my colleague Jim Higgins MEP, Ireland's representative on the European Parliament Transport Committee, has written to Commissioner for Transport, Siim Kallas, and the Internal Market Commissioner, Michel Barnier, on the matter and is to meet the European Parliament Transport Committee Chair soon to discuss it.  I will be keeping in contact with Deputy McHugh and MEP Higgins regarding any developments resulting from their respective meetings.

Regarding HGV road tax, one of my priorities for this year to help ease the burden of the UK levy is to examine the feasibility of introducing a similar pay-as-you-go road tax scheme for HGVs in Ireland.  For this purpose, I have established a cross-Departmental working group, following consultation with my colleague Phil Hogan, Minister for the Environment, Community and Local Government.  The group is currently considering the wide-ranging aspects of this issue and is due to report to Government by the middle of this year with its recommendations.  In the meantime, any reform of the existing motor tax regime is a matter for Minister Hogan.

On the issue of Irish HGV operators relocating their businesses to other jurisdictions, though some may choose this course of action, it remains to be seen if a large number of haulage operators will do so.  Any haulage operators that relocate will then be subject to the cabotage regulations that apply to out-of-state operators and their transport operations within Ireland will consequently be greatly restricted by those regulations.