Written answers

Wednesday, 1 July 2015

Department of Transport, Tourism and Sport

Motor Tax Rates

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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287. To ask the Minister for Transport, Tourism and Sport the reason hauliers are paying a substantial amount more in commercial vehicle road tax in the Republic of Ireland than in Northern Ireland (details supplied); his views that this is putting licensed haulage operators under financial strain and is putting 50,000 jobs that are dependent on the sector at risk; and if he will make a statement on the matter. [26507/15]

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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288. To ask the Minister for Transport, Tourism and Sport his views on the fact that local Irish haulage operators must now contribute £10 per day per vehicle to access Northern Ireland on routes that had no charge prior to 1 April 2014, which is putting haulage operators under financial strain; and if he will make a statement on the matter. [26508/15]

Photo of Terence FlanaganTerence Flanagan (Dublin North East, Independent)
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289. To ask the Minister for Transport, Tourism and Sport his plans to restructure commercial vehicle road tax in the Republic of Ireland in order that it is in line with costs in Northern Ireland; and if he will make a statement on the matter. [26509/15]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 287 to 289, inclusive, together.

I recognise the difficulties this industry has faced in recent years.  

My Department is currently chairing an Inter-Departmental Group on HGV user charges, which was established in January 2014 to consider the introduction in Ireland of a 'pay-as-you-go' road tax system for HGVs.  The group has been examining the technical, regulatory and economic dimensions of introducing a HGV road user charge in Ireland.  The work of the group was expanded to include a full review of commercial motor tax, which has led to the group taking longer than anticipated to finalise its proposals.  The group held a targeted stakeholder consultation in November 2014 which concluded in February 2015 and has held meetings with stakeholders, including representatives of the hauliers and their customers.  The report of the group is currently being finalised for submission to me and to the Ministers for Finance and the Environment, Community and Local Government.  I expect to receive the report shortly.

The UK HGV road user levy introduced on 1 April 2014 applies to all HGVs, both UK and foreign, using UK roads.  Under EU legislation it is not permissible to discriminate against non-Irish operators by charging them differently from Irish operators for use of the roads infrastructure.  This Government lobbied against the application of the charge to Northern Ireland, but the decision was a matter for the UK Minister for Transport.

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