Peter Burke (Longford-Westmeath, Fine Gael)
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4. To ask the Minister for Enterprise, Trade and Employment the supports that are currently available for bus and coach operators given the increase in fuel costs; and if he will make a statement on the matter. [15397/22]

Damien English (Meath West, Fine Gael)
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My colleague, Minister Eamon Ryan TD., Minister for Transport has responsibility for policy and overall funding in relation to public transport. The National Transport Authority (NTA) has statutory responsibility for securing the provision of public passenger transport services nationally, and for the allocation of associated funding to the relevant transport operators.

Licensed bus and coach operators are an integral part of the overall public transport system particularly in areas which are not covered by existing public service bus and rail services. In recognition of this, throughout the COVID-19 pandemic the Government have provided temporary financial supports for certain licensed commercial services with a view to protecting capacity across the public transport sector throughout the crisis.

The temporary support was initially introduced for a period of 6-months in June 2020, however owing to the continued impact of Covid-19 on passenger numbers and the associated drop in fare revenue, these supports have been extended a number of times. I understand that a further extension of these supports for a period of 3 months, up to the 30 June 2022 has recently been approved by my colleague Minister Eamon Ryan TD.

Additionally, to ensure the continued continuation of public transport services in rural parts of Ireland, the NTA have provided an additional level of subvention to support Local Link operators in the delivery of these services. These are provided to Local Link operators who are on fixed rate contracts and therefore are receiving no further increases to their base contracted rates. Currently, the funding has been provided to cover the costs for Quarter 1 2022. This is a once off payment initially, and the situation will be monitored on an ongoing basis.

Peter Burke (Longford-Westmeath, Fine Gael)
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5. To ask the Minister for Enterprise, Trade and Employment the supports that are currently available to the haulage sector given the increase in fuel costs; and if he will make a statement on the matter. [15398/22]

Damien English (Meath West, Fine Gael)
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The current spike in energy prices arises from the global recovery from the COVID-19 pandemic in conjunction with current international tensions and supply constraint issues. The causes of these price pressures are not within our control. This is being witnessed across the European Union as well as many other regions. The recent crisis in Ukraine has had a further dramatic impact on fuel prices.

Following discussions with the sector, on 11 March 2022 my colleague, Minister for Transport, Eamon Ryan T.D., and Minister of State with responsibility for International and Road Transport and Logistics, Hildegarde Naughton T.D., announced an emergency support measure for licensed hauliers to address cost pressures arising from current high fuel prices. This targeted, temporary grant scheme will provide a fixed payment of €100 per week for each heavy goods vehicle (over 3.5 tonnes) as listed on a road haulage operator’s licence. The scheme will operate for a period of 8 weeks and will be reviewed thereafter. The estimated cost to the State for the temporary measure is €18 million. Details on how to avail of the scheme will be communicated to hauliers.

In addition to the scheme, you will also be aware that the Government on 9 March 2022 reduced Excise duty by 20 cent per litre of petrol, 15 cent per litre of diesel and 2 cent in the excise duty charged on marked gas oil in order to reduce the cost of fuels.

Further, the Diesel Rebate Scheme offers a partial excise refund to qualifying operators when the price of diesel is high. In Budget 2020, in light of the challenges arising from Brexit uncertainty facing the industry, the marginal rate of compensation at prices over €1.32 (VAT inclusive) was doubled up to the maximum repayment rate of 7.5 cents per litre. In recognition of the vital role that the haulage sector plays in the economy, this increase has been maintained since.

In addition, businesses that are registered for VAT may deduct the VAT charged to them on the purchase of business inputs, such as road diesel and other motoring costs.

There are also supports available for operators to switch to alternatively fuelled vehicles. These include a purchase grant and reduced tolls for vehicles powered by a number of alternative fuels including hydrogen, electric, and gas. In addition, Budget 2022 announced an expansion of the Accelerated Capital Allowance (‘ACA’) scheme for Gas Vehicles and Refuelling Equipment. This ACA scheme provides an accelerated wear and tear allowance for capital expenditure incurred on qualifying vehicles and refuelling equipment.

The past two years have presented many challenges for the sector – the measures outlined above reflect Government’s understanding of that pressure and recognition of the important role that the haulage industry plays in keeping the country going. The issue will continue to be monitored as it evolves.