To ask the Minister of Finance and Personnel what assessment he has made of the impact of the increase in (i) fuel costs; and (ii) fuel duty on the departmental budget and the realisation of efficiency targets; and what actions he has taken to mitigate against these increased costs.

The recent increase in fuel costs have been substantial. If prices remain at current levels, or higher, for the remainder of the financial year, there will be pressure on this area of departmental expenditure. The extent of that pressure will be dependent on fuel price movements over the next 9 months.

However, for a number of years the Department has actively been pursuing good housekeeping policies in order to increase the energy efficiency of its buildings and reduce expenditure on fuel. In addition, recent staff moves have been to more modern, fit for purpose accommodation with lower running costs.

These efficiencies will help to limit the financial impact of the current fuel price rises.

In addition, the Department operates within a net VAT regime, whereby its budget is provided net of VAT and subsequent expenditure is reported net of VAT. As such fuel duty does not impact on the departmental budget.