High cost of diesel key issue for coach tours

FUEL PRICES:GOVERNMENT TAXES on diesel are "killing the Irish coach tourism industry", a lobby group for the sector warned this week.

The Coach Tourism Transport Council (CTTC) said its members could not sustain current diesel prices and warned that jobs would be lost if the Government did not act to bring down the price of fuel.

“Half of what we pay at the pumps for diesel goes to the Government in taxes,” Gerry Mullins, chief executive of CTTC said. “High taxes are causing job losses in tourism.”

He said that on a litre of diesel costing around €1.45, a coach company will spend around 47 cent on excise duty; 25 cent on VAT, and 2 cent on the National Oil Reserves Levy.

He claimed Republic of Ireland coach firms were competing against UK companies which can reclaim VAT on diesel. “This means British coach companies can offer their services cheaper than Irish ones, so potential visitors to Ireland are lost to Britain where they can enjoy a cheaper coach tour.”