Pre-Budget Submission To Government. From. The Coach Tourism & Transport Council of Ireland

Transcription

1 Pre-Budget Submission 2019 To Government From The Coach Tourism & Transport Council of Ireland August 2018

2 Introduction The Coach Tourism & Transport Council (CTTC) make this submission to Government in advance of October s budget. The CTTC is the representative organisation for Ireland s coach touring companies and private coach and bus operators. All of our members are family-owned companies with a combined fleet of over 1,500 coaches, employing over 3,000 people directly. The CTTC acts as a conduit between the sector and the decision makers that will affect it. The organization represents members regularly under issues of concern such as transport legislation, public transport, school transport and the coach tourism sector. The Private Coach Industry has, in Ireland, circa 1,800 licensed operators and is one of the few industries to sustain employment and support businesses in rural Ireland that otherwise have limited employment opportunities. It is estimated that the sector will generate in the region of 470 million to the economy this year. The impact of Brexit is already being felt in the year todate by the industry, with a significant decline in coach tourism visitors from the UK. The possible implications of the imposition of border tariffs, coupled with controls on the free movement of people, would have a very negative effect on the sector. Action needs to be taken now to ensure the industry remains competitive post-brexit and to facilitate growth. It is recognised that good public transport, where private operators play a significant role in its delivery, is a key enabler of social inclusion and economic progress and development. The long-term policy vision and planning for public transport needs to consider a range of financial demographic, environmental and international (including the aforementioned Brexit) challenges. Traffic congestion is an increasing issue now in our cities, journey times are longer, peak travel periods are starting earlier and ending later, while time spent commuting each day is growing. It is the view of CTTC that significant additional resources are required in the delivery of transport infrastructure, namely designated affordable park and ride points and the introduction of dedicated bus corridors along the arterial routes into our major cities, particularly the M1, M4 and M7 into Dublin. CTTC believe that the allocation of these additional resources would encourage commuters to make more sustainable choices in transport decisions and shift from travelling by private car to public transport. This investment would have the effect of reducing traffic congestion in our capital cities, improving the quality of people s lives, improving our environment and assisting in our climate change challenge. In order to protect and further develop this important sector of our economy, CTTC propose the following measures for inclusion in Budget 2019:- 1. Present inequalities in the Irish Tax system place coach tourism operators in the Republic of Ireland at a major competitive disadvantage to their counterparts in Northern Ireland. Those operators have the benefit of a zero VAT rate, which enables them to reclaim all of their inputs including the VAT on fuel. This has resulted in an increasing number of coaches from Northern Ireland being used in tourism in the Republic as they have a lower cost base, resulting in a loss of tax revenue and employment opportunities to the state. 2

3 CTTC recommends that operators in Southern Ireland should have a zero VAT rate or an equivalent arrangement to allow them compete on an equal footing with their Northern counterparts. 2. The CTTC calls on Government to recognise the reality of the serious decline in coach values and the age profile of the fleet. CTTC recommends an introduction of a special capital allowance of 50% of the cost of new and second hand vehicles up to two years old for fiscal years 2018 and 2019 in order to stimulate re-fleeting by coach providers and ensure quality standards. 3. To ensure compliance with ongoing legislation, RSA inspection and improve Health and Safety and Quality standards. CTTC recommends that the Government allows construction and improvement costs of garage facilities to be fully written off in the year of occurrence. This initiative will stimulate the highest standard of vehicle maintenance throughout the industry and create regional employment in the building and repair sectors. 4. At present social welfare claimants are assessed on the days per week they work. The CTTC recommends social welfare claimants be assessed on the actual hours they work rather than the days per week that they work. The measure would benefit operators hiring staff for just a few hours per day (e.g. school runs) without the need for the employee to lose all of their state benefits. This will also bring more people into the tax net as employers would be paying PRSI on these employees. 5. Road toll costs are a significant expense to the industry. CTTC recommends to assist traffic flows and avoid traffic congestion on arterial routes that commercial passenger operators be able to avail of free or reduced tolls. 6. The passenger transport industry in Ireland will face significant challengers in the medium term, with the population moving from a relatively young demographic profile to one of a higher proportion of older people with mobility difficulties. There is a requirement to prioritise and improve transport accessibility to adopt to this challenge. At present there appears to be no coherent approach or rationale to the provision of disability accessible vehicles or infrastructure to non-state funded operators. It is our view that the issue of vehicle accessibility cannot be looked at in isolation from the provision of appropriate accessibility infrastructure to facilitate access to the vehicle itself. To achieve a fully integrated public transport system, all bus operators should have access to publically funded transport infrastructure e.g. bus stations, railway stations etc. 3

4 The CTTC recommends the introduction of grant aid to improve accessibility, fast track vehicle refits, purchase accessible vehicles and provide access to all transport operators to publically funded transport infrastructure. 7. There is a requirement for investment to maintain standards and provide more environmentally friendly vehicles. To stimulate the above, CTTC recommends a Carbon Tax Rebate on all forms of public transport. 8. The Passenger Transport Industry is constantly challenged by substantial operating costs e.g. the cost of diesel is 5.5% higher in Ireland than the European average. Any additional excise duty would significantly impact on these costs, restrict future growth and potentially reduce the freedom of choice for patrons using public transport, at a time where the stated public policy is to grow the use of public transport. CTTC recommends that there should be no increase in Carbon tax or Excise duty on fuel in order to maintain the recent growth in the Industry. 9. Coach Tourism is a very substantial source of revenue to the Irish Exchequer with revenue contributing in excess of 470 million to the Irish economy and supporting sustainable employment in rural areas, however, the industry faces significant barriers to continued growth particularly in respect of the age profile of drivers and the excessive costs of licence qualification in the region of 2,500. CTTC recommends that Tax relief is given to employers in the industry to facilitate driver training. CTTC also recommends that driver training programmes be established to encourage new entrants into the industry. 10. There has been a significant increase in Insurance Costs in the sector. CTTC recommends that the government fast-track the implementation of the recommendations of review of the Cost of Insurance Working Group to encourage new entrants to the Irish Markets and, through competition, reduce insurance costs. Conclusion Private operators contribute significantly in the provision of high quality transport services to their customers without any state subvention. It is the view of the CTTC that the measures highlighted above would enhance the requirement for a strong private transport sector, ensuring that the state achieves the goal of an effective, efficient transport system that is value for money and reduces the current level of state subsidisation which is no longer sustainable in the current economic climate. 4

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