One of the key issues that has sparked controversy around the 2024 Irish budget in the transportation sector is the government’s decision not to defer upcoming toll increases, a move that has left hauliers frustrated.
Sinn Féin spokesperson on Transport and Communications, Martin Kenny TD, reacted to the budget announcement with concern, stating that this decision constitutes an attack on motorists, who have already faced a toll increase earlier in the year and are likely to encounter another before the year’s end.
Kenny noted that a previous toll increase, scheduled for January, had been deferred after a Sinn Féin motion calling for the government not to implement it due to the financial strain it would impose on motorists. The lack of any deferral for the impending toll increase in December has reignited the debate over the fairness of these contracts, which many perceive as unfavorable to the Irish people.
Sinn Féin had committed €31 million to halt toll increases, but the government’s stance on this issue remains unchanged.
Postponed excise increases
On a slightly more positive note, the government has postponed excise increases on petrol and diesel until next year.
The decision, announced by Minister for Finance Michael McGrath, comes as a response to the recent volatility in international oil prices that has driven up fuel costs.
The reversal of the previous excise duty cuts, which were introduced as a response to rising fuel prices, will now be implemented in two equal installments on April 1st and August 1st of the coming year.
However, despite this postponement, the cost of petrol and diesel will still rise due to the Carbon Tax that applies from today; the price of both fuels is rising from €48.50 per tonne to €56 per tonne, which translates into an extra 2.5c to the cost of diesel and 2.1c to the cost of petrol, explains The Journal.
Haulage industry: a sector under strain
As a result of a “perfect storm” of challenges, the Irish haulage industry finds itself in a precarious position, third-generation haulier Ger Hyland told Longford Live yesterday. Hyland acknowledged the deferral of fuel excise increases, but expressed disappointment at the budget’s lack of support for greening the sector.
The industry is plagued by various issues, including a severe shortage of drivers and mechanics, over-regulation, rising fuel costs, disrupted supply lines, and uncertainty surrounding the transition to greener fuel sources. Hyland emphasized that the budget offered little relief for a sector on the verge of collapse.
Hyland, who also serves as the President of the Irish Road Haulage Association, voiced concerns about the future of his business. He pointed out that the shortage of drivers is a common problem faced by hauliers across Ireland, and he hopes that a plan recognising Georgian driver licenses may provide some relief.
Despite efforts to invest in eco-friendly engines and exhaust-cleaning technology, the industry remains uncertain about the government’s long-term vision for greener transportation. There is a lack of clarity regarding whether the future lies with electric trucks or hydrogen-powered vehicles, leaving hauliers in a state of limbo.