Bríd Smith (Dublin South Central, People Before Profit Alliance)
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57. To ask the Minister for Transport, Tourism and Sport if he will report on the way the €100 million of VAT on tolls collected by the National Roads Authority and then Transport Infrastructure Ireland will be spent; the plans the agency has for these funds; and the implication this may have for his Department and the funding of transport projects over the coming period. [22129/17]

Shane Ross (Dublin Rathdown, Independent)
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​The statutory power to levy tolls on national roads, to make toll bye-laws and to enter into agreements relating to tolls on national roads is vested in Transport Infrastructure Ireland under Part V of the Roads Act 1993 as amended.

The background to the toll VAT issue is a ruling made by the Revenue Commissioners in May 2010, that the M50 and Dublin Port Tunnel tolls were to be subject to VAT from 1^stJuly 2010. Both the Toll Scheme and the Toll Bye-laws for the M50 and the Dublin Port Tunnel provide that the stated toll amounts are "inclusive of VAT if applicable". The toll was not, therefore, increased to take account of the Revenue ruling. Rather 21% (subsequently increased in 2012 to 23%) of the toll received was deemed to be VAT and remitted to Revenue. The cost of the VAT ruling was, therefore, absorbed by TII. This in turn meant that TII had less funding available for the maintenance and improvement of the national road network.

TII appealed the Revenue VAT ruling which resulted in a referral to the European Court of Justice. In its decision in January this year, the European Court of Justice concluded that VAT should not apply to tolls on the M50 and the Dublin Port Tunnel. Following on from that decision, Revenue is considering its position in relation to the close out of the appeal process but has confirmed that TII is not a taxable person in relation to tolling. Therefore VAT is not applicable to toll charges on the M50 and the Dublin Port Tunnel. As a result TII is no longer remitting 23% of the toll charge to Revenue since April.

TII has informed me that, with the revenues now available to it again as a result of the Court decision, its board has decided to go ahead with the construction of a number of safety projects this year. These projects were identified through a review of minor realignment projects that have planning consent. It targeted identified safety benefits, and took account of their state of preparedness. The schemes identified as suitable for construction this year are:

- N61 Coolteige

- N70 Kilderry Bends

- N56 Coolboy to Kilmacrennan

- N2 Monaghan to Emyvale

I am very pleased at this decision to prioritise lives by TII, given the priority I attach to saving lives on our roads.