Claire Kerrane (Roscommon-Galway, Sinn Fein)
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144. To ask the Minister for Finance if he will consider introducing a tax credit for motor costs for rural dwellers, in light of high car dependency through no fault of rural dwellers, and the lack of alternatives when it comes to transport; and if he will make a statement on the matter. [54357/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Environmental taxes, including on auto fuels, are an important policy lever for Government in both raising revenues and supporting climate policy. The use of carbon tax revenues plays an important role in insulating the most vulnerable from the increases in the tax and in supporting decarbonisation and energy efficiency programmes across buildings, agriculture and transport. Accordingly, revenues generated from our carbon tax are allocated to support agri-environmental schemes, fuel poverty and to support community and energy upgrade schemes. Further information on the use of carbon tax funds following Budget 2026 can be found in this link: assets.gov.ie/static/documents/2c8f3efb/The_Use_of_the_Carbon_Tax_Budget_2026.pdf

While I appreciate that people living in rural Ireland do not have the same public transport options as those living in our cities, public transport is widely available in rural Ireland and the Government is committed to further improving services.

As set out in the National Development Plan, the Government is committed to strengthening rural economies and communities and enhancing regional accessibility, with a range of investments in new and existing public transport infrastructure. 

In addition, the Connecting Ireland Rural Mobility Plan is a major five-year national public transport initiative with the aim of increasing public transport connectivity, particularly for people living outside the major cities and towns.

Since it began in 2022, more than 175 new and enhanced services have been implemented connecting over 240 towns and villages to the public transport network. These routes have provided 41 Connections to higher education facilities, 61 connections to healthcare facilities, and 71 connections to existing rail services.

Approximately 600,000 people now have access to these new or enhanced bus services.

Almost 8 million passenger journeys were recorded across Connecting Ireland services in 2024. Where Connecting Ireland services have been implemented patronage has increased 38% from 2023 to 2024, indicating a measurable modal shift away from private car use.

In the new Programme for Government, Securing Ireland's Future, this Government has committed to increasing Local Link services in rural areas to better connect villages, towns and cities, and to continue the roll-out of Connecting Ireland and investment in new town services.

Moreover, the Government is making public transport more accessible in rural and regional areas for disabled and older people by retrofitting older transport infrastructure and facilities.

Funding under the Public Transport Retrofit Programme increased 67% in 2025 compared to 2024.

The Programme is funding the installation of accessible bus stops in regional areas, bus and train station accessibility improvements, and increasing the number of wheelchair taxis.

I am satisfied that there are sufficient road transport supports in place for rural dwellers.