Michael Lowry (Tipperary, Independent)
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195. To ask the Minister for Transport, Tourism and Sport if he will urgently seek approval to reintroduce the fuel cost subsidy or to reform the diesel rebate scheme; the additional measures that will be implemented to support persons and operations of the freight industry (details supplied); the measures that are being taken to alleviate the current fuel price crisis for the freight industry; and if he will make a statement on the matter. [54727/22]

Hildegarde Naughton (Galway West, Fine Gael)
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The Ukraine crisis and matters arising from it continue to adversely affect European and Global oil markets, causing a sustained increase in the price of crude and in the price of refined products on the retail market.

The Government recognises the important role the haulage sector plays in supporting the economy and is fully aware of cost pressures on haulage businesses arising from high fuel prices, in particular since the outbreak of the conflict in Ukraine.

Since March 2022, the Government has put in place several measures to help ease these cost pressures:

- On 10 March 2022, to alleviate the impact of rising fuel prices, the Government introduced VAT inclusive excise duty reductionsof 15 cent per litre of diesel and 20 cent per litre on petrol. A further reduction of 1 cent per litre (VAT inclusive) applied from 1 April 2022 to offset the impact of anticipated increased prices as a result of the increase in the Biofuel Obligation Scheme administered by Minister for Transport and Environment, Climate and Communications. These reductions were due to expire on 12 October 2022 but in recognition of continuing elevated costs these measures were extended out in Budget 2023 to 28 February 2023.

- On 15 March 2022, the Government introduced the Licensed Haulage Emergency Support Scheme. The Scheme was administered by the Department of Transport and provided a temporary financial 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. There was good uptake of the scheme, with over €15.6 million paid out to c. 3,080 operators (approx. 80% of licensed operators.).

- The Revenue Diesel Rebate Scheme (‘DRS’)has been in place since 2013 and remains available to licensed haulage operators in respect of vehicles over 7.5 tonnes. At diesel prices over €1.43 (including VAT), the maximum rebate of 7.5 cent per litre is provided.

- The rising cost of fuel has been further recognised by the Government through the reduction of the National Oil Reserves Agency (NORA) Levyto €0.001. The reduction of the NORA levy, which had been collected at a rate of 2 cent per litre, will help offset the carbon tax increase of just over 2 cent which took effect on 12 October.

- In relation to the Deputy's query on reforming the DRS, this is a matter for the Department of Finance and Revenue Commissioners as the competent authorities for the policy and administration of the DRS respectively. I am aware that the sector has generally raised some concerns and suggestions in relation to the DRS. These have been communicated to the Department of Finance and the Revenue Commissioners. Finally on the DRS, it has always been the case that some operators that are eligible for the DRS do not take it up. I would strongly encourage all such operators to make the most of the supports that are available.

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, it isn’t possible to fully insulate citizens and businesses from the impact of these fuel price increases.

With the benefit of the Excise reduction, the 8 weeks support under the Licensed Haulage Support Scheme and the ongoing Diesel Rebate relief and NORA levy reduction, haulage businesses 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. It is important that all businesses, large and small, across the economy share the pain of these cost increases - where it is possible to review contractual arrangements to provide for such sharing in these difficult times, I would encourage all businesses to adopt a fair and reasonable approach.

My Department, Minister Ryan and I will continue to monitor the evolution of fuel prices in the period ahead and we will remain engaged on an ongoing basis with the sectoral representative bodies.