Fuel soars as rebate
is axed
BUS drivers who operate school bus runs in Inishowen
are among those severely hit by the soaring price of
diesel.
But things are set to get even worse when a
long-standing fuel rebate is axed from November 1,
2008.
The axing of the "substantial" fuel rebate to
private bus operators who undertake school runs and
other scheduled services to the public, could spell
the end for some transport operators.
The rebate has been in existence in Ireland for many
years but is being removed because it is viewed by
the EU as anti-competitive State aid.
A Revenue spokesman yesterday confirmed that Ireland
had to get rid of the rebate to bus operators by
November 1 in compliance with EU law.
The Lough Swilly Bus Company which carries around
5,000 Donegal children to and from school every day
would be among those most severely hit.
Contacted yesterday, however, passenger manager
Connell Diver said he could not foresee what the
company's response might be if the fuel rebate was
not replaced by some other measure.
He admitted that the removal of such a rebate,
coupled with the soaring cost of fuel would make it
seriously difficult for some, particularly smaller
transport providers, to make a living.
Mr. Diver also revealed that the cost of fares on
the Lough Swilly routes were going up on August 1,
2008.
"This is our normal annual increase and is not being
introduced because of the soaring price of fuel," he
said. He did concede however, that while the
increase would normally be in the region of 5% to
6%, this year's inflationary increase would be
closer to 8% or 9%.
This would take the Buncrana to Derry return fare
from €7.50 to around €8.00 or in Sterling from £5 to
£5.50.
A group representing private bus operators recently
wrote to the Department of Education warning that
many drivers may have to withdraw their vehicles
from school bus routes due to the rising cost of
diesel.
Since Easter, the Private Association of Motor Bus
Owners (PAMBO) has been contacted by more than 150
drivers concerned about diesel costs.
According to PAMBO, private bus operators provide
82% of the buses in the school transport system and
some service providers had been operating at a loss.
Meanwhile, Mr. Diver said operators would get some
reprieve from the soaring costs of fuel during the
summer holidays. It is understood the Government is
examining alternatives for bus operators when the
Customs & Excise rebate is withdrawn. |
