Written answers

Tuesday, 4 April 2017

Department of Transport, Tourism and Sport

Road Tolls

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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642. To ask the Minister for Transport, Tourism and Sport if he will instruct Transport Infrastructure Ireland to postpone the 23% increase on toll costs on the M50 from 1 April 2017 following the ruling of the Court of Justice of the European Union that toll charges are not subject to VAT, in view of the fact the increasing costs to the road haulage industry will damage business and jobs; and if he will make a statement on the matter. [16323/17]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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As Minister for Transport, Tourism and Sport, I have responsibility for overall policy in relation to roads.  The planning, design and implementation of individual road projects on national roads are a matter for Transport Infrastructure Ireland (formerly known as the NRA) under the Roads Acts 1993-2015 in conjunction with the relevant local authority.  For regional and local roads it is a matter for each respective local authority. More specifically, the statutory powers to levy tolls on the M50 and Port Tunnel, to make toll bye-laws and to enter into toll agreements with private investors are vested in TII under Part V of the Roads Act 1993 (as amended by the Planning and Development Act 2000 and the Roads Act 2007). 

The position with regard to VAT on tolls is that TII absorbed the imposition of VAT within the pre-existing toll charge.  By that I mean VAT was shown as part of the total toll charge.  From 1 April 2017, the toll charge will no longer show a VAT element.  There is no variation in the overall cost and there has been no variation in the overall toll cost since 2010.  

Noting the above position, I have referred the matter to TII for a more detailed reply.  Please advise my private office if you do not receive a reply within 10 working days.

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