Michael Moynihan (Cork North West, Fianna Fail)
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92. To ask the Minister for Finance if the rate of payment of the fuel grant under the disabled drivers and disabled passengers scheme will be reviewed to take consideration of the recent increase in fuel prices; and if he will make a statement on the matter. [10165/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Disabled Drivers and Disabled Passengers Fuel Grant is regulated by S.I. 635/2015 and provides for payment of a fuel grant based on a the value of excise chargeable per litre rate of fuel. The grant is based on the excise component of the fuel, not the market price. The current value is €0.636 for petrol, €0.535 for diesel and €0.118 for liquefied petroleum gas (LPG) in respect of the mineral oil taxes applying to these products. An annual maximum of 2,730 litres applies in respect of a driver or passenger, and 4,100 litres in respect of an organisation. This grant has been increased by the value of the recent increase in carbon tax with effect from 1 January 2022.

Michael Moynihan (Cork North West, Fianna Fail)
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93. To ask the Minister for Finance the steps that are being taken to alleviate the financial burden of increasing petrol and diesel prices for persons that are unable to avail of public transport; and if he will make a statement on the matter. [10166/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware, the final retail price of fuel is determined by a number of factors including the costs of production, distribution, global market factors, international exchange rates, taxation, wholesale market contracts as well as individual retail pricing policies.

Ireland’s taxation of fuel is based on European Union law as set out in the Energy Tax Directive which sets the legal framework for taxation of fuels and electricity in the EU. Ireland applies excise duty, in the form of Mineral Oil Tax (MOT), to fuels used for motor or heating purposes.

MOT is comprised of a non-carbon and a carbon component; the carbon component is also referred to as carbon tax. The Deputy will be aware that the 2020 Programme for Government committed to increasing the amount that is charged per tonne of CO₂emissions from fuels to €100 by 2030. I followed through on this commitment by introducing legislation in Finance Act 2020 to provide for a 10-year trajectory for carbon tax increases to reach €100 per tonne of CO₂ by 2030. This measure is a key pillar underpinning the Government’s Climate Action Plan to halve emissions by 2030 and reach net zero no later than 2050.

The current inflationary trend in fuels is driven by international market factors, primarily by rising demand due to the economic recovery with secondary factors of rising EU ETS allowance prices, weather patterns and gas supply levels in Europe also contributing to rising costs.

Of course, the Government is acutely aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices and for this reason we designed a package of measures to alleviate the impact of increased energy prices on households.

The package of measures includes:

- an increase in the energy credit to €200 including VAT, estimated to impact just over 2 million households

- a lump sum payment of €125 on the fuel allowance will be paid to 390,000 recipients

- there will be a temporary reduction in public transport fares of 20% from the end of April to the end of the year. This will impact approximately 800,000 daily users of Bus Éireann, Iarnród Éireann, Dublin Bus, Go Ahead, Luas, DART and Local Link services.

- a reduction of the Drug Payment Scheme from €144 to €80. This will benefit just over 70,000 families

- the working family payment budget increase will be brought forward from 1 June to 1 April

- reduced caps for multiple children on school transport fees to €500 per family post primary and €150 for primary school children

The package of measures announced by the Government provides support to households in rural and urban areas alike. The €200 energy credit is available to all domestic electricity account holders.The targeted welfare support measures provide financial support to households regardless of geographical location. The 20 percent fare reduction is available on all public transport routes including Bus Éireann and Local Link.

However, I recognise that rural areas have less transport options compared to urban areas.This is an issue which the government is currently addressing. As set out in the National Development Plan, the Government is committed to strengthening rural economies and communities and enhancing regional accessibility, with a range of investments proposed in new and existing public transport infrastructure.The Plan also commits to significant investment in the land transport network and the upcoming National Investment Framework for Transport in Ireland will set out the priorities for investment in the land transport network.

The Rural Development Policy 2021-2025, Our Rural Future, also contains over 150 commitments to the improvement of the quality of life in rural Ireland, to be delivered by central Government Departments, State agencies and local authorities. These include commitments to providing improved rural transport services, piloting new transport initiatives to enhance the quality of life for people in rural areas, and ensuring that public transport services in rural and regional areas are accessible to those with disabilities or reduced mobility.

The Policy aims to develop expanded Local Link Services and to further integrate Local Link Services with other existing public transport services through the rollout of the National Transport Authority’s Connecting Ireland Plan. There is also a commitment to develop a grant-aided Community Transport Service Scheme through Local Link, as well as to running a pilot to examine the potential for hail-riding services to improve rural connectivity and to develop a subsidised Local Area Hackney Scheme in designated areas that are too small to support a full-time taxi or hackney service.

The Policy also commits to investing in high quality walking and cycling infrastructure specifically targeted at towns and villages across the country, investing in the local and regional road network to maintain roads to a proper standard and to increase regional connectivity and to increasing investment in the repair of non-public roads through the Local Improvement Scheme.