Written answers

Tuesday, 14 June 2022

Department of Transport, Tourism and Sport

Haulage Industry

Photo of Darren O'RourkeDarren O'Rourke (Meath East, Sinn Fein)
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84. To ask the Minister for Transport, Tourism and Sport the measures that he is taking to support hauliers with the increasing price of fuel; if he intends to reintroduce the fuel cost subsidy or to reform the diesel rebate scheme; and if he will make a statement on the matter. [30740/22]

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 provided 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.

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.

The Scheme was administered by the Department of Transport. On 19 May 2022, Minister Ryan and I announced the extension of the closing date for receipt of completed applications to close of business 6 June 2022. Over €15 million has been paid out under the Scheme to 2,923 licensed operators. Further eligible applications received will be processed over the coming days and final payments will be made shortly.  I can confirm the Scheme is now closed.

In relation to the Diesel Rebate Scheme (DRS), 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 €1.43 (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.

More generally, the Government has acted to offset the rising cost of fuel through a 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.

Since early March with the benefit of the excise reduction, 8 weeks support under the Licensed Haulage Support Scheme and the ongoing Diesel Rebate relief, haulage businesses will have had the opportunity to revise and renegotiate contracts with their clients in order to reflect increased prices, as is an unfortunate reality in all sectors across the economy.

The Government has limited resources but through the Excise measure, 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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