Written answers

Tuesday, 2 May 2017

Department of Transport, Tourism and Sport

Road Tolls

Photo of Brendan  RyanBrendan Ryan (Dublin Fingal, Labour)
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1299. To ask the Minister for Transport, Tourism and Sport further to the ruling of the European Court of Justice earlier in 2017 which stated that VAT should not be applied to tolls on road journeys, if reimbursements will be provided to persons for their journeys; if so, the way a person can apply for a reimbursement of same; and if he will make a statement on the matter. [19333/17]

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.  More specifically, the statutory powers to levy tolls on national roads as well as regional and local roads, to make toll bye-laws and to enter into toll agreements with private investors are vested in TII (for national roads) and each local authority (for regional and local roads) under Part V of the Roads Act 1993 (as amended by the Planning and Development Act 2000 and the Roads Act 2007).

 The recent decision on VAT is in relation to state-owned toll roads such as where TII is the toll charger. The position adopted by TII in relation to the M50 and the Dublin Port Tunnel, following the initial finding, it absorbed the cost of VAT within the pre-existing tolls and did not impose an increased charge. In other words, VAT was shown as part of the total toll charge. From 1st 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.

Photo of Kevin O'KeeffeKevin O'Keeffe (Cork East, Fianna Fail)
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1300. To ask the Minister for Transport, Tourism and Sport if his attention has been drawn to in effect a 23% increase in toll charges on the M50 which will cause undue hardship on the haulage industry; if his attention has been further drawn to the ruling of the Court of Justice that European toll charges are not subject to VAT; if he will liaise with Transport Infrastructure Ireland to postpone these charges; if his attention has been drawn to the fact that these new toll charges, along with current insurance premiums, have the potential to close down haulage companies; and if he will meet with the Irish Road Haulage Association to discuss this matter following a request from same. [19363/17]

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.  More specifically, the statutory powers to levy tolls on national roads as well as regional and local roads, to make toll bye-laws and to enter into toll agreements with private investors are vested in TII (for national roads) and each local authority (for regional and local roads) 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, following the initial finding, TII absorbed the cost of VAT within the pre-existing tolls and did not impose an increased charge. In other words, VAT was shown as part of the total toll charge. From 1st 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.

Given the very clear position of myself as Minister, as set out above, and TII statutory provisions, any meeting regarding tolls would have to be with TII.  As Minister I have no role in relation to toll charges or VAT.  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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