Catherine Martin (Dublin Rathdown, Green Party)
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174. To ask the Minister for Public Expenditure and Reform if his attention has been drawn to the fact that the current system of travel allowances paid to public servants for travel in the conduct of their duties pays a higher rate for those driving in vehicles with larger engine sizes; if he will consider introducing a revised system of allowances that would incentivise travel by bike, public transport and lower pollution vehicles; and if he will make a statement on the matter. [32737/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Travel on official duty is an integral part of the functions carried out by many civil and public servants. As a standard principle, public servants should always strive to use public transport for official travel in the first instance, where suitable.

The mileage rates are designed to compensate an officer for the costs incurred in using their own car on official business. The rates are set based on a methodology agreed with the Staff Associations. The methodology takes account of both overhead costs (such as car cost, depreciation and insurance) and also running costs (fuel costs and maintenance). The rates are intended to reimburse an officer for the costs incurred and are not considered a source of emolument or profit. As such, these rates are not considered to be an incentive for officers to use their own cars for official travel.

The Deputy may wish to note that the formula underpinning the motor mileage rates was reviewed this year with a view to reflecting increased efficiencies and improvements in motor technology. The revised rates are based on an agreed methodology that reflects changes in technology, road conditions, commuter behaviour and car ownership patterns. In comparison to the previous system, the revised rates provide a more beneficial compensation regime for officers with cars with lower engine sizes (i.e. the 0-1200cc engine category).

The Deputy may also wish to note that my Department recognises the importance of encouraging officers to choose more environmentally-friendly vehicles and methods of travel. Future revisions of the mileage formula for motor travel rates will move progressively in this direction.

The Revenue Commissioners administer a tax relief scheme for employers to provide a bicycle to employees where the employee does not incur a tax cost for benefit in kind. The Cycle to Work Scheme operates by way of a salary sacrifice. Where an officer uses their bicycle for official travel, they may claim mileage at a rate of 8 cent per kilometre.