The government has approved of an €18m scheme to assist haulage businesses with cost pressures to be administered by the Department of Transport.

Minister for Transport Eamon Ryan and Minister of State with responsibility for International and Road Transport and Logistics Jack Chambers presented the design scheme to cabinet on Tuesday.

Higher levels of support will be aimed at smaller operators struggling with inflation in fuel and operating costs, with a graduated payments system.

Haulage companies will receive payments of €1,200 per vehicle for the first five vehicles on their licence, falling to €700 for vehicles six to 20, and €200 for each vehicle thereafter.

"During a time of such uncertainty for global supply chains, this is a welcome scheme for such an important sector of our economy," said Minister Ryan.

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"While various support schemes have been announced for businesses impacted by gas or electricity price rises, these schemes offer limited applicability to the licenced haulage sector.

"I am therefore pleased to confirm that the government has approved funding of €18m for the Licensed Haulage Support Scheme 2023. The sector plays a key role in Ireland’s supply chain and in supporting Ireland’s economic activity. This funding will give hauliers the confidence to continue their operations without heightened financial burdens.”

The scheme will cover eligible heavy goods vehicles authorised on the licence of a current road haulage operator as of 15 December last year, subject to the operator satisfying the terms and conditions of the scheme at the time of application.

The Department of Transport will soon publish the detailed terms and conditions of the scheme, the related application system, and the required EU state aid notification.

It will also contact licensed haulage businesses directly in due course with detailed instructions of how to apply for the scheme.

Minister of State Chambers added: “The licensed haulage sector is a specific case in that it helps to underpin Ireland’s domestic and international supply chains.

"Virtually all goods moved into and around the country are moved by road, which makes it a sector of national strategic importance. This has been evidenced throughout the recent crises of Brexit, Covid-19 and the war in Ukraine. 

"The Licensed Haulage Support Scheme 2023 is designed in such a way to target higher levels of support at smaller operators that are facing increased operating and fuel costs.

"It will therefore be operated on a graduated payment basis, meaning a larger relative level of support for smaller operators. Payments per vehicle will be calculated based on €1,200 for the first five vehicles on a licence; €700 for vehicles six to 20; and €200 for each vehicle thereafter."

Close to three quarters of licensed haulage operators (74%) have five or fewer vehicles.

The proposed scheme would replace the Licensed Haulage Emergency Support Scheme, which paid a flat rate of €100 per week for eight weeks for eligible vehicles, with more than €15.6m paid out to 3,084 operators.

(Pic: Getty Images)