LAST UPDATE | 28 Apr

CABINET HAS SIGNED off on the details of the Fuel Support Subsidy Scheme for farmers, farm contractors and fisheries.

It’s one of several actions undertaken by Cabinet today.

Construction contractors and quarry truck drivers will also be covered by the new scheme, a move first reported by The Journal, which is expected to be finalised in the coming days.

Under the €100m scheme, payments will be made to businesses from March to July of this year in an effort to shield businesses most exposed to the increased cost of fuel since the start of Israel and the US’s war on Iran.

The Construction Industry Federation (CIF) has welcomed the news.

CEO Andrew Brownlee said the industry continues to feel the effects of global oil price shocks due to the Iran war. “These pressures are having a direct and significant impact on construction costs across the sector,” he said.

“The Government has now confirmed that the construction sector will be included in the Fuel Subsidy Support Scheme, which is currently being finalised. We welcome this important response to the significant cost pressures being experienced by construction companies across the country.”

Approximately 120,000 farmers and 1,500 full-time agricultural contractors are eligible to receive payments through the scheme, with funding allocated based on fuel usage last year.

Related to this, Transport Minister Darragh O’Brien also brought details of the support scheme for hauliers to Cabinet for sign-off today.

The Road Transporters Support Scheme (RTSS) will be open to licensed road haulage operators and licensed passenger operators.

Under the scheme, supports will also be provided to the operators of TFI Local Link services under contract with the National Transport Authority (NTA), school transport services through the Department of Education and Youth and for transport services to the Islands by the Department of Rural and Community Development and the Gaeltacht.

The Department estimates that 25,700 licensed haulage vehicles, 12,400 other haulage vehicles and 11,900 licensed passenger vehicles may be eligible for the scheme.

Both schemes were signed off by the government after protests by farmers and hauliers almost brought the country to a standstill earlier this month.

The government’s fuel price supports has been welcomed by hauliers. 

The Irish Road Haulage Association (IRHA) said today it acknowledged the “constructive engagement” with the government over the last two months.

Fuel prices have risen substantially since the United States and Israel launched a war against Iran on 28 February. The rise in fuel costs led to protests and blockades of fuel facilities earlier this month. 

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Today, the IRHA said the supports announced by the government represent “an important step in recognising the pressures faced by hauliers”.

The IRHA was among the representative groups that negotiated tax cuts for fuel.

President of the IRHA, Ger Hyland, said that while the fuel supports won’t save every haulage business, “they will ease the burden of escalating fuel and other costs”.

Still, while the support package is welcome, “our cost base is still extraordinarily high”, Hyland said.

“Higher tolls, port charges, new taxes, charges and government imposed levies along with escalating fuel prices have driven many hauliers out of business.

“We will continue our engagement with Government to ensure that the needs of the industry are addressed in a practical and sustainable manner.”