Michael Ring (Mayo, Fine Gael)
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315. To ask the Minister for Public Expenditure and Reform the rationale of new mileage rates (details supplied) in comparison to the BIK rate changes from January 2023; and if he will make a statement on the matter. [54937/22]

Michael McGrath (Cork South Central, Fianna Fail)
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Travel on official duty is an integral part of the functions carried out by many civil and public servants. As a standard principle, public servants should always strive to use public transport for official travel in the first instance, where suitable.

The mileage rates are designed to compensate an officer for the costs incurred in using their own car on official business. The rates are set based on a methodology agreed with the Staff Associations. The methodology takes account of both overhead costs (such as car cost, depreciation and insurance) and also running costs (fuel costs and maintenance). The rates are intended to reimburse an officer for the costs incurred and are not considered a source of emolument or profit. As such, these rates are not considered to be an incentive for officers to use their own cars for official travel.

The Deputy may wish to note that the formula underpinning the motor mileage rates was reviewed in 2017 with a view to reflecting increased efficiencies and improvements in motor technology. The rates are laid out in three categories, up to 1200 CC, 1201 to 1500 CC and 1501 CC and over. This reflects the differing costs associated with cars that fall into each category for the overhead and running costs referred to above. The revised rates are based on an agreed methodology that reflects changes in technology, road conditions, commuter behaviour and car ownership patterns. In comparison to the previous system, the revised rates provide a proportionally more beneficial compensation regime for officers with cars with lower engine sizes (i.e. the 0-1200cc engine category).

The Deputy may also wish to note that my Department recognises the importance of encouraging officers to choose more environmentally-friendly vehicles and methods of travel and recently included electric vehicles in the current motor travel rates.

My Department has no role in matters relating to Benefit In Kind (BIK) which comes under the purview of the Revenue Commissioners.

Circular 16/2022, which sets out the revised motor travel rates effective 01 September 2022, is attached for your information.