11.05.07

Tánaiste Refuses Tax Breaks for Beleaguered Commuters

Posted in Fine Gael, Transport tagged , , , , , , , , , , , , , , , , , , , at 2:23 pm by Tony

(This is a release I’ve sent to the local press in Kildare in my capacity as a Fine Gael activist)

Train

Tánaiste and Minister for Finance Brian Cowan has refused to consider a Fine Gael proposal that tax saver status should be extended to any proposed parking charges at railway stations. The move was put to the Mr Cowan by Fine Gael’s Brian Hayes TD at the request of local Fine Gael activist and rail campaigner Tony O’Donnell.

Responding to the Minister’s decision, Dr O’Donnell had the following to say:

“Transport Minister Noel Dempsey recently gave the green light for parking charges at commuter stations including those here in Kildare. These parking charges could represent an additional cost of over €500 to regular travellers, which means a significant increase to the cost of commuting by rail. While all of the local rail users’ groups have been resisting any such charges, the Government seem to be completely unwilling to support our cause.

“In light of this, I have been working with Fine Gael transport spokesperson Senator Paschal Donohoe to identify ways in which the burden can be reduced. One obvious mechanism at the Government’s disposal is an extension of the Tax Saver scheme to cover pay parking.

“The Tax Saver scheme allows commuters to purchase their annual tickets from their gross salary. This means a significant saving on tax and PRSI. If extended to parking charges it could offset nearly half of the cost.

“Unfortunately Brian Cowan has refused to consider such a move, citing two grounds. The first concerns the potential loss of tax revenue, which at an annual cost of around €250 per occupied space would hardly make a dent in the cabinet’s pay rises.

“His second grounds for refusal is that he doesn’t believe it would help to reduce congestion. This simply doesn’t make sense. Pay parking will make rail travel less attractive, and so he is encouraging people back on to the roads.

“We will continue to lobby the Minister on this between now and next month’s budget, however it is disappointing that he seems unwilling to recognise the needs of commuters.”

Notes:

Question to Brian Cowan on Tax Saver Status

DÁIL QUESTION

NO 149

To ask the Tánaiste and Minister for Finance if, in view of the Government’s encouragement and support to passengers who choose public transport, with the imposition of a car parking charge at railway stations which could lead to a potential 25% increase in commuting costs, he has considered introducing an annual parking ticket that could be brought into the tax saver system affording commuters the same tax breaks that they get for their tickets themselves; and if he will make a statement on the matter.

- Brian Hayes.

* For WRITTEN answer on Tuesday, 23rd October, 2007.
Ref No: 25162/07

REPLY

Tánaiste and Minister for Finance ( Mr Cowen ) :

The policy objective underlying the existing arrangements covering bus and rail passes is to encourage taxpayers to use public transport when travelling to and from work and, thus, contribute to the easing of traffic congestion and to the improvement of the environment. The extension of the scheme to include car parking costs would involve additional loss of tax revenue and it is not clear that it would contribute significantly to a reduction in traffic congestion.

Question to Noel Dempsey on Pay Parking

Róisín Shortall T.D.

No: 494

*To ask the Minister for Transport and the Marine if the memorandum of understanding between his Department and Iarnród Éireann contains requirements of Iarnród Éireann in relation to the minimisation of parking charges at stations; his Department’s policy in relation to the imposition of such charges on commuters and the consequent discouragement of the use of public transport; and if he will make a statement on the matter.

- Róisín Shortall.

* For WRITTEN answer on Wednesday, 26th September, 2007.

Ref No: 20393/07

Answered by Minister for Transport

(Noel Dempsey T.D)

REPLY

The Memorandum of Understanding between my Department and Iarnród Éireann contains no provision in relation to parking charges for the use of car parks at railway stations. The provision and management of car parks at railway stations is a matter for Iarnród Éireann, taking account of the guiding principles for the implementation of rail-based park and ride adopted by the Dublin Transportation Office in their strategy for park and ride in the Greater Dublin Area. These were approved by my Department in 2005. These principles are:

  • Park and ride should improve rail accessibility without disimproving road congestion,
  • Rail users only should use park and ride spaces, and may have to pay to use them,
  • Complementary parking controls in the areas around stations may be required,
  • Those who benefit from park and ride should contribute to the cost of it by way of a separate charge; the cost should not be absorbed into rail fares generally,
  • Rail services must be able to serve the demand generated by Park and Ride provision.

Park and ride facilities can and do have a positive impact on public transport use and have an important role to play in encouraging people to transfer from private cars to public transport. In considering whether to impose charges for the use of park and ride facilities, providers are expected to take into account a variety of factors and these would include consideration of the likely impact of charges on use of the facility and, by extension, on public transport use.

3 Comments »

  1. James Lawless said,

    November 5, 2007 at 4:33 pm

    Appreciate your efforts Tony but it wasn’t just a Fine Gael proposal - other rail groups and Fianna Fáil activists (ahem) sought the same reliefs albeit via separate submissions. His response to my request was that it would certainly be considered - although I guess we’ll get the final answer in December.

  2. Tony said,

    November 5, 2007 at 4:42 pm

    I appreciate that James, but in my defence this is something that I was talking to Paschal about a couple of weeks ago, before I heard that the other groups were doing it too.

    Hope your submission gets a more positive response. I presume the Minister doesn’t officially respond to pre-budget submissions in advance of Budget Day?

  3. James Lawless said,

    November 5, 2007 at 5:08 pm

    Yeah I know snap, goes to show the benefit of a joined-up approach as we’re both involved in co-ordinating now. I got a positive response but that doesn’t mean it will happen. It was short on specifics.

    The Minister will keep all these decisions to himself until the grand unveiling, not even FF hacks are made privy (unfortunately!).

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