Darren O'Rourke (Meath East, Sinn Fein)
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107. To ask the Minister for Transport, Tourism and Sport if he intends to extend the €100 weekly payment per vehicle for the haulage industry; if he plans to amend and update the diesel rebate scheme; if so, the way he plans to amend the scheme; and if he will make a statement on the matter. [21012/22]

Eamon Ryan (Dublin Bay South, Green Party)
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The European and global oil markets are currently volatile, due to the conflict in Ukraine exacerbating pre-existing market shortages, primarily of diesel. This has caused a spike in the price of crude and in the price of refined products on the retail market.

In response to the pressures caused by increased fuel costs,

Recognising that escalating fuel costs were a problem in particular for the licensed haulage sector, on 15 March 2022, the Government approved an emergency scheme to provide support of €100 per week for eight weeks for each eligible heavy goods vehicle authorised on the licence of a road haulage operator as of 11 March 2022.

In deciding on a targeted scheme, the Government considered that the licensed haulage sector is a specific case for several reasons, primarily that the sector is of national strategic importance as a critical enabler of a functioning supply chain, bringing essential supplies into and around the State, supporting key infrastructure and enabling the maintenance of economic and social activity. While this is true for some own account operators also, in addition fuel represents a greater overall proportion of overhead costs for licensed hauliers than would be the case for other businesses who self-provide transport as part of their wider business.

In relation to the Diesel Rebate Scheme, this is a matter for my colleague Minister Donohoe. It should be noted however that support under the Scheme was increased 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 cent per litre and in recognition of the vital role that the haulage sector plays in the economy, this increase in the DRS has been maintained since.

In addition to the Licensed Haulage Emergency Support Scheme and the Diesel Rebate Scheme, on 09 March the Government announced a 20 cent reduction in the excise rate for petrol and a 15 cent reduction on auto diesel, to the benefit of all businesses and citizens facing increased fuel costs. On 11 April, it was agreed that these reductions will remain in place until Budget Day.

In general, however, it should be recalled that the causes of these increases are not within the control of Government and are being directly influenced by external factors, including the Ukraine crisis.

Unfortunately, we must accept that it will not be possible to fully insulate citizens and businesses from the impact of these fuel price increases. In addition, we cannot compromise the progress we have made on implementing climate policies which are critical to ensuring we reduce emissions and address climate change impacts.

In light of these last two factors, it is important that haulage and other businesses now engage with their customers on the need for the prices for their products and services to reflect the increased costs.

The Government has limited resources but through the Excise measure, as well as the Licensed Haulage Emergency Support Scheme and the continuing Diesel Rebate Scheme it has responded to help to ease the impact of these price increases.