Paul Kehoe (Wexford, Fine Gael)
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204. To ask the Minister for Transport, Tourism and Sport if he will consider re-introducing the licensed haulage emergency support scheme for the months of November to April as a specific assist for the haulage industry; and if he will make a statement on the matter. [59090/22]

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 reductions of 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 haulage operators.).

- As part of Budget 2023, and in further recognition of the rising cost of fuel, the Government announced a reduction of the National Oil Reserves Agency (NORA) Levy to €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, meaning that the price of fuel will not go up as a result of taxes or levies.

In addition to above measures, the Diesel Rebate Scheme (‘DRS’), which is administered by Revenue, has been in place since 2013 and remains available to licensed road transport 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. It has always been the case that some operators do not avail of this support – I would encourage all those eligible to do so.

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, it is not 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 continue to monitor the evolution of fuel prices and as I indicated at the Committee on Transport and Communications on 23 November 2022 we are currently engaged with the Department of Public Expenditure and Reform regarding the potential to fund further supports to the sector in 2023, subject also to the necessary State Aid approval at EU level. I hope to be in a position to announce further details in the coming weeks.