Charlie McConalogue (Donegal North East, Fianna Fail)
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5. To ask the Minister for Transport, Tourism and Sport if he will provide an update on his and his officials' efforts to explore options with their UK and Northern Ireland colleagues to mitigate the effect of the road user levy on Irish hauliers; his plans to introduce a similar road levy charge here; the reasons for same; and if he will make a statement on the matter. [46301/14]

Charlie McConalogue (Donegal North East, Fianna Fail)
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This question is to ask the Minister for Transport, Tourism and Sport to provide an update on the work he and his officials have undertaken to explore options with their colleagues in the United Kingdom and in Northern Ireland to mitigate the effect of the user levy on heavy goods vehicles, HGVs, that has been introduced in recent weeks by the British Government. It also is to ask the Minister his plans, if any, to introduce a similar road levy charge here and whether he will update Members on this matter.

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government recognises the importance of the haulage sector to the Irish economy and has introduced a number of initiatives to support Irish hauliers. It has introduced legislation to clamp down on unlicensed hauliers, a new online system for haulage licensing has been introduced and the Government has cut costs for hauliers through the fuel duty rebate scheme, which is worth more than €30 million to the industry. In November, I met the Minister for Finance and representatives of the Irish hauliers to discuss options for reducing the motor tax burden on the haulage sector. At this meeting, the Minister for Finance committed to reducing road tax on HGVs of more than 12 tonnes, with a tapering of the reduction from vehicles below that rate, starting in next year's budget.

The introduction of the United Kingdom's HGV levy was an unwelcome development for Irish hauliers, particularly for those operating in areas around the Border with Northern Ireland. Although my Department lobbied extensively against the application of the United Kingdom's HGV road user levy in Northern Ireland, the Minister for Transport in the United Kingdom refused to grant any significant concession beyond the small sections of Northern Ireland's roads that criss-cross the Border.

As for the introduction of pay-as-you-go road user charging in Ireland, this is being examined by my Department through the cross-departmental group on HGV road charging. The group issued a consultation paper on potential reform of the commercial vehicle motor tax system to stakeholders on 27 November. On completion of the consultation process, the group will submit a report with recommendations to me and to the Ministers for the Environment, Community and Local Government and Finance for consideration.

Charlie McConalogue (Donegal North East, Fianna Fail)
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I thank the Minister for his reply. I believe the failure of the Government to secure a derogation from the British Minister for the A5 was highly disappointing and I believe such a derogation should have been achievable for the Government. Did the Minister emphasise that in recent years, the Irish Government has taken a partnership approach with regard to the financing of the preparations and plans for the aforementioned A5 to the tune of approximately €50 million and that there is a long-term agreement that future development of the road will be co-funded? It is exceptionally disappointing that the Minister did not and was not able to twist arms to emphasise to the British Minister the importance of providing a derogation for Irish road hauliers on that road. The principle already is established and as the Minister has indicated, 7 km of road that criss-crosses between counties Monaghan and south Armagh were exempted. Consequently, this can be done, is something the Minister should have been able to achieve and is highly disappointing.

What is the Minister's view on the feasibility of the introduction of a similar system in the Republic to that introduced by the British Government to alleviate the pressure on our heavy goods vehicle hauliers?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I will let the Deputy back in.

Charlie McConalogue (Donegal North East, Fianna Fail)
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In County Donegal alone, there are 150 separate hauliers with 500 lorries registered. Because of the high costs being imposed on them, many of them now are moving to Northern Ireland and unless immediate action is taken by the Minister, this trend will continue.

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government and my party have done more for the haulage sector than the Deputy's party has ever promised or delivered. The Deputy should consider what the Government has delivered for the sector. The fuel rebate for hauliers was introduced in recognition of their legitimate need. Fuel duty has been frozen for the past three years in each of the budgets the Government has brought in and now, a commitment has been given to bring in a fair and sustainable tax system for the sector. The Deputy is wheeling out the rhetoric on what he believes should have been done when his own party never did anything. During the peak of greatest difficulty for the country, the Government recognised the vital contribution of the haulage sector through the delivery of the aforementioned three measures and put in place an extensive body of work to secure further recognition of this from the Government of the United Kingdom. If one examines the actual performance of the sector at present, at the end of September 2014 16,211 vehicles were operating under the road haulage operator licence, which constitutes an increase of 10.5% on the position a year earlier. A key cause of this increase was the measures brought in by the Government to support an industry it is aware is vital to the economy.

Charlie McConalogue (Donegal North East, Fianna Fail)
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I am afraid the rhetoric is coming from the Minister's side of the Chamber this morning. The measures he outlined regarding the fuel rebate and fuel duty freezing reflect the fact that fuel prices have risen over the past three or four years. Moreover, under the present Government, albeit not necessarily entirely because of its actions but because of international pressures, the costs on the haulage industry have increased. The measure introduced by the Government was one proposed to it by the haulage industry and for which it was obliged to fight and to knock down doors over many months before it could get the Government to see the sense of it. It was a measure that led to increased revenue to the State because it ensured that more fuel was purchased in the State.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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A question please.

Charlie McConalogue (Donegal North East, Fianna Fail)
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What now has happened is that because of the policy measures taken by the British Government, costs have greatly increased. It now costs €700 to €800 to tax a heavy goods vehicle in Britain, whereas the equivalent cost for a vehicle here is €3,000 to €4,000. In the absence of an immediate response from the Minister to introduce a similar system here and following on from his failure to secure a derogation, hauliers will continue to move their registration out from our country to others.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Deputy is over time.

Charlie McConalogue (Donegal North East, Fianna Fail)
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This issue demands immediate action and I emphasise the importance of the Minister taking action to address the immense pressures on the haulage sector at present.

Paschal Donohoe (Dublin Central, Fine Gael)
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All that was missing from the Deputy's contribution was an attempt on his part to try to take credit for the measures the Government has brought in. Despite the huge mess in the midst of which the present Administration took over-----

Charlie McConalogue (Donegal North East, Fianna Fail)
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The Minister should deal with the issue.

Paschal Donohoe (Dublin Central, Fine Gael)
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-----three measures have been brought in to recognise the needs of the haulage sector, including the fuel rebate scheme that has the potential to deliver more than €30 million to this sector. As its representatives have raised different issues, at each point my Department has engaged with them.

We have now made available to them a report to deal with how we put in place a sustainable and effective system for the sector in the future. The Deputy did not give any recognition to the fact that the Minister for Finance and I had met representatives of the sector. We have given them a commitment that in the next budget we will begin work to reduce the burden faced by vehicles of a particular size. This is an explicit recognition by the Government of the challenges they face and the importance of the sector, as recognised by each of the previous measures we have already introduced.