The Irish Road Haulage Association (IRHA) has warned that next week’s Budget could have a lasting impact on the future of Ireland’s transport and logistics sector, calling on Government to support an industry that underpins businesses and jobs across rural Ireland.

IRHA President Ger Hyland said Government has a major opportunity to simultaneously protect rural jobs, cut transport emissions and strengthen Ireland’s energy security — but warned that getting the Budget wrong could put further pressure on an already stretched industry.

The IRHA is calling for a package of measures, including targeted incentives to accelerate the move towards lower-carbon biofuels.

The Association has proposed:

• A 12c per litre Biofuel Rebate Scheme for the sustainable component of blended diesel.
• A 24c per litre rebate for operators using 100% HVO as a diesel substitute.
• An extension of reduced excise on fuel into spring 2027.
• A further three-month continuation of the Road Transporters Support Scheme (RTSS).
• Continuation of the diesel rebate at current levels.

Mr Hyland said the biofuel measures would allow existing HGVs to reduce emissions without waiting for the widespread availability of electric heavy goods vehicles.

“Government talks constantly about decarbonisation, energy security and meeting Ireland’s climate obligations. We are putting forward a practical solution that could allow thousands of existing trucks to start reducing their emissions immediately.

“The technology is here. The trucks are here. The fuel is available. What is missing is the financial incentive to make the switch viable for hauliers.”

The IRHA says making lower-carbon fuels more competitive with conventional diesel would help accelerate their uptake while reducing Ireland’s dependence on imported fossil fuels.

Mr Hyland said: “If Government wants hauliers to move away from fossil fuels, then it has to make the alternatives economically viable. You cannot ask a low-margin industry to absorb the entire cost of the transition.

“We are asking Government to incentivise a move away from diesel and towards lower-carbon biofuels.”

The Association also argues that increased use of sustainable biofuels could contribute to Ireland’s efforts to reduce transport emissions and limit future exposure to EU climate fines.

Mr Hyland said the Budget was an opportunity for Government to recognise the importance of Ireland’s road transport industry to the wider economy.

“The vast majority of goods in this country still move by road. Our members keep supermarkets supplied, factories operating, farms connected to markets and businesses across rural Ireland functioning.

“If we want a strong rural economy, we need a strong and viable haulage sector.

“Next week’s Budget is an opportunity for Government to back the industry, protect jobs and put in place a realistic pathway towards cleaner transport. We are asking Government to take that opportunity.”