Better Road User Charging Evaluation

Better Road User Charging Evaluation

The objective of this project is to develop clear policy pathways for future CAPs that would set Ireland on a trajectory to meet the combined emissions ceiling of carbon budget 1 and carbon budget 2 of 91 MtCO2eq.

The Better Road User Charging Evaluation (BRUCE) project was completed by TII. The project explored future options for user charging, and for operation and maintenance funding of the National Road Network in Ireland.

Commission on Taxation and Welfare Report

Currently, thirteen sections of the national motorway network (one third of the motorway network) are operated via public private partnerships (PPPs). Eight of the PPP scheme operate toll plazas and 5 receive availability payments from TII. In addition, TII collect tolls directly on the M50 and Dublin Tunnel Toll Points. Income collected from tolls covers the operational costs on these roads as well as partially offsetting the cost of operations and maintenance funding for the larger publicly operated national road network. The majority of the 8 PPP toll plaza franchises expire between 2033-2037, with the Limerick tunnel expiring in 2041 and the M3 in 2052. The 5 availability payment PPPs expire between 2040 to 2045.

The Commission on Taxation and Welfare (COTW) was established in April 2021 to consider how the taxation and welfare system can support economic activity and income redistribution, whilst promoting increased employment and prosperity in a resilient, inclusive and sustainable way and ensuring that there are sufficient resources available to meet the costs of public services and supports in the medium and longer term.

The Report made four recommendations with potential impacts for transport demand. The Commission recommended:

ᴏ A redesign of Motor Tax and Vehicle Registration Tax on commercial and noncommercial motor vehicles in the medium to long term, in a manner that is consistent with environmental objectives and ensures that tax revenues from motor vehicles are maintained.

As the national car fleet transitions to EVs, with implications for revenue from motor tax, VRT, BIK, fuel excise, carbon tax, among others, and a growing deficit in Exchequer finances TII explored options for next generation road user charging/ tolling to enable Government to deliver on improved climate and economic performance, as the network returns to public ownership.

ᴏ The introduction, in the medium term, of distance, location and time-based road usage charges and that planning for such charges should include early identification of the appropriate technology to be used in calculating and applying them (see BRUCE project below).

It is worth noting that the charging of vehicles for the use of road infrastructure in the European Union is governed by Eurovignette Directive (EU) 2022/362, which has been transposed into Irish law. While the provisions of the Directive do not require Member States to levy road charges, the common rules laid down in the Directive must be followed in instances where charges are introduced.

ᴏ The introduction of congestion charges in key urban areas, based on a number of key metrics linked to environmental and individual impact and that these charges should be reviewed following the introduction of road usage charges.

ᴏ The introduction of an additional duty on non-residential car parking, both public and private, and not limited to employer-provided car parking, in the same key urban areas identified as suitable for congestion charges.

The COTW report and the extensive evidence used in support of its recommendations provide a strong system-wide rationale for many of the recommendations emerging from the Fiscal Measures expert sub-group in particular.