Dáil Éireann Debate, Tuesday - 26 September 2023
151. Deputy Niamh Smyth asked the Minister for Transport what proposals he is working on to assist the Irish haulage industry to reduce their costs as fuel prices continue to soar; and if he will make a statement on the matter. [41548/23]
View answerThe Government recognises the important role that the haulage sector plays in maintaining Ireland’s strategic supply chains and in supporting Irish businesses and acknowledges the cost pressures on haulage operators, including as a result of high fuel prices in recent years.
Two temporary haulage support schemes were run by the Department of Transport in 2022 and 2023, with a total of €31.2 million in grants paid out to licensed haulage operators across both schemes.
The Licensed Haulage Emergency Support Scheme 2022 was designed as an emergency support measure to assist haulage businesses dealing with a sudden and severe spike in diesel prices following the outbreak of the war in Ukraine in February 2022.
The second half of 2022 saw sustained historic highs in diesel price which were a continued risk to the liquidity of haulage businesses. In recognition of this, the Government again acted and agreed the Licensed Haulage Support Scheme 2023, which was open between 23 March and 31 May 2023.
However, diesel prices have fallen back from the peaks seen in late 2022, and in February the Government agreed to a phased restoration of excise duty between June and October this year.
The Diesel Rebate Scheme (DRS) remains available to hauliers. It has been in place since 2013 for 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. Data from the Revenue Commissioners shows a 93% increase in claimants (both haulage and passenger operators) applying for the DRS in 2022 compared to 2021. However, there is still scope for the haulage sector to make better use of the DRS, as not all operators avail of it, and the Department encourages all businesses to make best use of available Government supports.
Ireland’s Road Haulage Strategy 2022 – 2031 has been designed to address areas of particular challenge for the haulage and road freight sector. These include decarbonisation and the HGV driver shortage. Some of the actions contained in the Haulage Strategy involve direct financial supports, such as the Alternatively Fuelled Heavy-Duty Vehicle Grant Scheme, which bridges some of the price difference between conventional heavy-duty vehicles and more environmentally friendly alternatively fuelled vehicles and the Low Emission Vehicle Toll Incentive or ‘LEVTI’ Scheme, which offers toll discounts for alternatively fuelled vehicles.
Additionally, Eco-Driver training, which trains drivers to operate their vehicles in a safer and more eco-friendly manner, has been proven to lead to a significant reduction in fuel consumption and related carbon emissions. This not only benefits the environment, but also generates cost savings and improved efficiencies for road freight operators and leads improved road safety. My Department is currently working towards establishing a national standard for eco-driving courses and will analyse what incentives and measures could be introduced to increase the number of drivers undertaking available courses.
My Department is also helping the industry by supporting initiatives to encourage new entrants into the commercial driving profession, including via the Transport Operations & Commercial Driving Apprenticeship, which is taught out of Atlantic Technological University Sligo, and the Professional HGV Training Programme, which is run by Education & Training Boards (ETBs) across the country.
Furthermore, the quota for employment permits for HGV drivers from outside the European Union/European Economic Area (EEA) was removed in 2021, and the Road Safety Authority (RSA) is currently involved in discussions towards new licence exchange agreements with Argentina, North Macedonia and Georgia, which if successfully concluded would increase the pool of HGV drivers that Irish haulage companies can recruit from.
Finally, I would like to emphasise that the Department of Transport will remain engaged with haulage representative bodies regarding the challenges they face in particular via the Road Freight Forum, which was established to monitor on an ongoing basis the implementation of the Road Haulage Strategy.
