Written answers

Tuesday, 31 May 2022

Department of Transport, Tourism and Sport

Haulage Industry

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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121. To ask the Minister for Transport, Tourism and Sport if he has made any provisions to include livestock hauliers under the licensed haulage support scheme given that they have previously been exempt from the scheme; and if he will make a statement on the matter. [27489/22]

Photo of Hildegarde NaughtonHildegarde Naughton (Galway West, Fine Gael)
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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.

On 15 March 2022, Minister Ryan and I proposed to Government an emergency support measure – the Licensed Haulage Emergency Support Scheme. The Scheme will provide support of €100 per week for eight weeks for each eligible heavy goods vehicle (HGV) authorised on the licence of a road haulage operator as of 11 March 2022.

The Scheme is being administered by the Department of Transport. Application forms have been provided directly to all licensed hauliers by email using the email address held on file by the Road Transport Operator Licensing Unit in Loughrea.

On 19 May 2022, Minister Ryan and I announced the extension of the closing date for receipt of completed applications for the Scheme to 6 June 2022. I can confirm the Scheme will not be extended beyond this date and that the current eligibility requirements, principally that applicants must hold a valid road haulage operator licence, will not be revisited.

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 other operators also, in addition I am informed that fuel represents up to 40 per cent of cost inputs for road haulage operators. The sector is highly exposed to fuel price fluctuations and is more limited than others in terms of its ability to absorb such cost shocks. Also, licensed operators must hold a licence, employ a qualified Transport Manager and meet stringent financial standard requirements. Exempted operators, including those carrying livestock, are not required to hold a Road Haulage Operator Licence.

More generally, the Government has acted to offset the rising cost of fuel through the reduction in Excise on fuels - a reduction of 20 cent on petrol and 15 cent on diesel fuel. While this measure (announced in early March 2022) was originally proposed to last until 31 August 2022 the Government has extended it out to Budget Day 2022. This measure provides assistance to all citizens and businesses to help mitigate the impact of recent fuel price increases.

In general, however, it should be noted that the causes of the current fuel price pressures 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 light of this, it is important that businesses now engage with their customers on the need for the prices for their products and services to reflect the increasing costs.

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

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