Dáil Éireann Debate, Thursday - 4 December 2025
191. Deputy Niamh Smyth asked the Minister for Transport if he will review concerns raised by a transport and logistics business (details supplied); if he will address the issues highlighted in the correspondence; and if he will make a statement on the matter. [68560/25]
Amharc ar fhreagra192. Deputy Niamh Smyth asked the Minister for Transport if he will review concerns raised by a transport and logistics business (details supplied); if he will address the issues highlighted in the correspondence; and if he will make a statement on the matter. [68561/25]
Amharc ar fhreagraI propose to take Questions Nos. 191 and 192 together.
I note the costs set out by the company over the period 2021-2025 and that the policy responsibility spans a number of Government Departments.
As Minister for Transport, I am committed to supporting the haulage and road freight sector. In recent years my Department has provided targeted short-term financial supports to operators impacted by the sharp increase in the cost of diesel and other operating costs due to the war in Ukraine.
The collaborative approach taken during Brexit, and COVID was invaluable, and we have now established a permanent Road Freight Forum to continue this dialogue. My Department and I will continue to engage with industry representatives through the Road Freight Forum and Logistics and Supply Chain Skills Group, to develop medium and long-term policies to support the haulage and road freight sector to overcome the dynamic issues they are facing.
I wish to draw your attention to the schemes which provide for electrification of Heavy Duty Vehicle (HDV) fleets and have set out additional information below, in an appendix, for your information.
As Minister for Transport, I also have responsibility for overall policy and funding in relation to the national roads programme. Under the Roads Acts 1993-2015, the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned.
Therefore, matters relating to the day-to-day operations regarding national roads, including toll roads, are within the remit of TII. More specifically, the statutory power to levy tolls, to make toll byelaws and to enter into agreements with private investors, are vested in TII under Part V of the Roads Act 1993 (as amended). Moreover, the contracts for the privately-operated toll schemes are commercial agreements between TII and the Public Private Partnership (PPP) concessionaires concerned. Noting the above position, I have referred the question regarding tolls to TII for a direct reply. Please advise my private office if you do not receive a reply within ten working days.
Matters concerning fuel fall under my remit as Minister for Climate, Energy and the Environment. In this regard, The Government is committed to a just transition to climate neutrality that leaves no one behind. Just transition builds on the principles of evidence-based approaches; ensuring that people are equipped with the right skills to benefit from the net zero economy; cost-sharing and equity; and social dialogue with impacted people and communities.
The allocation of Carbon Tax revenues contribute to the principle of cost-sharing. To ensure that the impact of carbon tax increases are progressive through redistribution, Budget 2025 allocated €951 million in carbon tax supports to a range of programmes that support Ireland’s transition to a low carbon economy and protect those most vulnerable. Allocations were prioritised to targeted social welfare interventions; residential and community energy efficiency upgrades; and programmes to incentivise sustainable agriculture and transport initiatives.
With regard to taxation of fuels, all transport fuels are subject to excise duty in the form of Mineral Oil Tax (MOT), and to Value-Added Tax (VAT).
Auto-diesel is the predominant fuel in the transport sector and in November 2021 the applicable MOT rate was €535.46 per 1,000 litres. The current rate of €615.76 per 1,000 litres reflects an increase of €80.30 per 1,000 litres to the carbon component. This increase has been implemented in four equal amounts each October since 2021 under the 10-year carbon tax trajectory.
The Diesel Rebate Scheme (DRS) provides a partial rebate of MOT to qualifying road haulage and bus transport operators, when the average retail price of auto-diesel exceeds €1.00 per litre excluding VAT. The DRS repayment rate has been at the maximum level for almost four years. This is in additional to VAT registered businesses’ ability to deduct the VAT charged on the purchase of business inputs, such as auto diesel or HVO. In 2024 the DRS scheme provided over €31 million in support to haulage companies.
Matters concerning the minimum wage and statutory sick pay are the responsibility of the Department of Enterprise, Trade and Employment. Employment Pay Related Social Insurance and Pension Auto-Enrolment are the responsibility of the Department of Social Protection.
Appendix - Additional Information on Electrification of HGV Fleets
The Zero-Emission Heavy Duty Vehicle Purchase Grant Scheme (ZEHDV) opened in February 2024. The Scheme awards grants to assist companies and enterprises who wish to buy zero-emission heavy duty vehicles (ZEHDV) which are supported by the Scheme instead of buying the diesel equivalent. In November 2024, the scheme was expanded to include purchase grants for recharging infrastructure. The Zero-Emission Heavy Duty Vehicle (ZEHDV) Purchase Grant Scheme is funded by the Department of Transport and administered by Transport Infrastructure Ireland. In July 2025, a fleet assessment scheme was introduced to evaluate current electrical capacity, identify potential upgrades to transformers and substations, and plan for smart energy management systems to avoid excessive demand charges and grid constraints.
The EV Fleet Assessment Grant is a government-funded support scheme that helps businesses explore the transition to electric vehicles (EVs). The scheme offers financial support for an independent fleet assessment carried out by a qualified energy advisor.
The assessment provides:
• A detailed review of your existing fleet, including mileage and fuel consumption
• Identification of routes and vehicles suitable for electrification
• A tailored EV charging plan to support your transition
• Guidance on the type and scale of charging infrastructure required
This support is available to large enterprises, SMEs, and semi-state bodies seeking to decarbonise their fleet but unsure where to begin. Eligible businesses can receive up to €4,000 for fleets of 5–50 vehicles or up to €8,000 for fleets of 51+ vehicles. Site assessments will be supported to evaluate current electrical capacity, identify potential upgrades to transformers and substations, and plan for smart energy management systems to avoid excessive demand charges and grid constraints.
The Zero Emission Vehicles Ireland (ZEVI) division of the Department of Transport engage with the IRHA both individually and as part of ZEVI’s wider Public-Private Vehicles Stakeholder Group and Zero Emission Heavy Duty Vehicles Subgroup. In addition, the IRHA are also part of the HDV Electrification Pathway Working Group which was established in February by ZEVI to support the electrification of the heavy-duty fleet in Ireland. The Working Group is represented by organisations from across the road transport and logistics sector, charge point operators, vehicle manufacturers, motor industry representatives, academia and public policy officials.
The purpose of the Group is to:
• Ensure strong industry input into the development of a HDV Electrification Pathway
• Share knowledge and learnings with a view to progressing HDV electrification
• Investigate barriers to the uptake of zero emission heavy duty vehicles
• Establish the strengths and opportunities for the roll out of HDV infrastructure
• Identify domestic and international case studies that provide opportunities for further knowledge sharing.
The Working Group has been tasked with producing a HDV Electrification Pathway Report. The objective of the Report is to support the electrification of the heavy-duty fleet in Ireland and offer practical solutions and a roadmap towards 2040 and is expected to be published in early 2026.
