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Failure to overhaul Road Tax ‘will have detrimental effect’, says the Irish Road Haulage Association. Photo: 123RF

The Irish Road Haulage Association (IRHA) has issued a warning to Government that failure to overhaul commercial vehicle road tax in advance of the introduction of a road user charge for HGV’s in Northern Ireland and the UK, will have a significant impact on the ability of the transport fleet to service the export market.

A £10 charge per day will be applied as of the 1st of April to Irish HGV’s entering Northern Ireland and the UK in order to deliver Irish produce, the Association has warned Government that the cost cannot be absorbed by the sector. The IRHA has stated that given the current excessive level of road tax on HGVs in the South, any further charge cannot be taken on by operators.

Currently road tax on a six axle vehicle in the Republic is €3,000 plus, in comparison to €1,250 in Northern Ireland with many operators already struggling to compete with their Northern Ireland competitors. Any further financial burden, which cannot be passed onto the customer, will spell the end for countless operators servicing our currently strong export market.

Commenting on the subject matter, President of the IRHA Eoin Gavin stated: “The current approach utilised by Government for commercial vehicle road tax in Ireland is completely outdated and is creating considerable hardship for the sector. Therefore the IRHA has proposed to Government that a revised road tax structure must be implemented prior to the 1st of April”.

At a pre-Christmas meeting with Minister Hogan, the Association explained the urgency of this matter to the Minister and he was fully supportive of their proposals and promised immediate action on behalf of his officials.

"Furthermore, Minister Varadkar, as part of his department priorities for 2014, included the development of a road charging system for HGV’s so the political support is in place, we now urgently need to see a benefit at ground level”, Mr Gavin concluded.

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