Poor get poorer while rich urbanites get e-car grants
Almost ALL of the €63m of taxpayer’s money handed out under electric vehicle scheme subsidised drivers who could already afford €30k-plus cars
‘It’s a mess – EVs are a rich man’s game’
‘Additional measures to further incentivise EVs’
MORE than 99% of the €63m-plus handed out in grants to electric vehicle buyers last year subsidised wealthy motorists who could afford to pay more than €30,000 for their climate-friendly vehicles, the Irish Mail on Sunday can reveal.
The revelation has fuelled anger among backbench TDs who described the EV grants as a State-sponsored subsidy for the rich and mostly urban elite.
New figures reveal a total of 13,414 motorists availed of the Government’s electric vehicle subsidy scheme – established to drive sales of climate-friendly cars – last year, at a cost of €63,266,800 to the taxpayer.
And transport experts warn the final bill could be as high as €10bn to meet the Coalition’s target of just under one million e-vehicles by the end of the decade.
Of those who used the scheme last year, a fraction of 1% (53 people) received grants worth a combined €220,600 to buy vehicles which cost under €30,000. The remaining 13,361 all received generous subsidies for buying electric cars above this value. This includes 2,795 motorists who received a total €13,450,600 for buying vehicles with a price tag over €60,000.
A further 2,596 people secured subsidies worth €12,192,700 to buy vehicles in the €50,000 to €60,000 range.
The taxpayer also picked up the tab for €22,512,200 in grants claimed by motorists who purchased climate friendly vehicles priced between €40,000 and €50,000. While a further 3,201 claimants received €14,890,700 to help them purchase e-vehicles worth between €30,000 and €40,000.
The figures were confirmed by Transport Minister Eamon Ryan in response to parliamentary queries from Social Democrats TD Jennifer Whitmore.
Last year, the 13,414 new e-vehicle owners received an average of €4,700 in subsidies under the scheme, which is not available to purchasers of second-hand EV cars or those with a value of less than €20,000.
Transport experts warn that, given the Government’s target to have 955,000 electric vehicles on our roads by 2030, the final bill for the subsidy scheme could be as high as €10bn.
Ms Whitmore sharply criticised the massive transfer of wealth from taxpayers to high income earners who can afford to buy expensive new climate-friendly vehicles.
The Wicklow TD told the MoS: ‘Money which could be spent on better public transport is being allocated to those wealthy enough to afford €50,000 new cars.
‘These figures affirm my original position that the subsidy amounts to a major transfer of wealth to those who don’t need it.
‘Serious questions need to be asked of a scheme where people cannot afford schoolbooks or food for their children, and we are giving €5,000 payments to purchasers of €50,000 luxury EV cars.’
One senior Government source said of the scheme: ‘It’s a mess – EVs are a rich man’s game. Again, climate change is being associated with the interests of Dublin 4 elites rather than working people.’
Sinn Féin transport spokesman Darren O’Rourke said the party, if voted into government, will replace the electric vehicle grant with a new scrappage scheme that would target ‘working families’ who cannot afford to make the switch to new climate friendly cars.
Despite the criticisms, Minister Ryan strongly defended the scheme, saying: ‘Electric vehicles are the most prominent transport mitigation measure in the 2021 Climate Action Plan. The target [955,000] is challenging but indicates the scale of the transformation that is needed across all sectors if Ireland is to achieve its climate targets in the coming years.’
The Green leader also stressed the direct grants are just one of seven separate measures in which the taxpayer subsidises electric vehicle owners.
Mr Ryan added: ‘A comprehensive suite of measures is available to EV drivers, including purchase grants for private car owners and taxi drivers, VRT relief, reduced tolls, home charger grants, favourable motor, and BIK [benefit-inkind] tax rates, as well as a comprehensive charging network.
‘These measures have collectively contributed to increased take-up of EVs in Ireland in recent years, albeit from a low base, to over 62,000 at the end of June.’
The minister also revealed the Government could introduce new measures to further incentivise e-car buyers.
Mr Ryan said: ‘Work is ongoing to identify additional measures to further incentivise EVs and/or disincentivise fossil-fuelled vehicles. Overall, cost-effective, targeted policy supports will continue to be developed and strengthened over the coming years.
‘Overall, the department is acutely aware that the cost of electric vehicles remains an issue for many consumers. To this end, electric vehicle policy is kept under continuous review in an effort to make lowemission vehicles affordable.’
On July 1 a price cap was introduced so that the scheme is closed
to e-vehicles priced over €60,000.
However, Deputy Whitmore said the Government ‘urgently needs to re-examine its priorities’ in light of the cost of living crisis impacting families.
‘Public transport facilities in rural Ireland resemble ghost services and we are spending billions of euros of taxpayers’ money subsidising expensive cars that can only be afforded by an elite,’ she said.
‘It would be far wiser and far more socially equitable for money to be built on a sustainable rural transport system. There are not too many people in rural Ireland who can afford €60,000 electric vehicles.’
Ms Whitmore also said far more needs to be done to improve elective vehicle infrastructure across the country. ‘There needs to be a great deal more practicality. We need, for example, to massively refurbish our EV charging infrastructure. An increase to 955,000 EVs needs more chargers than two beside the local train station,’ she said.
‘The Government are in real danger of the EV equivalent of putting the cart before the horse, or in this case EV’s before we have the infrastructure to support them.’
In response to queries from the MoS, a Department of Transport spokesperson said: ‘While a relatively small number of EVs, 53, priced at €30,000 or less were grantaided, this reflects the limited choice of EVs available on the market within that price range.
‘A price cap was introduced on July 1, 2021, after which EVs priced at over €60,000 were no longer supported by the grant.
‘The Department of Transport has, however, always indicated that grants would be tapered in the coming years, based on an anticipated increase in EV numbers and decrease in EV cost.’
‘Need to refurbish EV charging infrastructure’