Diesel price cut `delights' hauliers

The Irish Road Haulage Association (IRHA) declared its "delight" yesterday, claiming all its recommendations had been included in the Budget.

The hauliers - who last September staged a protest over what they described as Government inaction on rising fuel prices - particularly welcomed the reduced price of diesel.

Excise duty on a litre of diesel is to drop by 6 pence with a consequent reduction in VAT of 1.3 pence, reducing the price from 26.3 pence per litre to 19 pence.

The changes took effect from midnight last night. With a further reduction in VAT of 1 per cent announced for January 1st, the total reduction in the price of a litre of diesel will be 7.8 pence.

The hauliers also welcomed increases in the subsistence allowance for lorry-drivers with varying tax-exempt rates for overnight accommodation and meals. The Minister is also to provide unspecified "additional funding" to the IRHA to enhance its professional service to its members.

The reduction in the number of years after which capital costs for plant may be written off against tax - from seven years to five - was also welcomed. While the hauliers would be seeking clarification of the term "plant", the IRHA chief executive, Mr David Walsh, said the improvement would apply across the board to all industries as well as hauliers.

In an effort to encourage the use of low-sulphur diesel, the Minister said he would amend the regulations to ensure that the reduction of 6 pence per litre of diesel would apply to low-sulphur engines only. Such a move requires EU approval, which is currently being sought, he revealed.

The Minister also said purchasers of new vehicles equipped with hybrid engine technology, which reduces emissions, would be allowed a 50 per cent refund of Vehicle Registration Tax. The measure would apply for two years.