156 Mr. Lawlor asked the Minister for Health and Children if he will urgently review the situation with regard to the changes in entitlement to mobility allowance introduced in budget 2001 in view of the serious concerns of groups such as the Irish Wheelchair Association at the new criteria which are due to be introduced on 1 April 2001 (details supplied). [6453/01]

The disabled drivers and disabled passengers (tax concessions) scheme, which comes under the aegis of the Department of Finance and the Revenue Commissioners, enables qualifying persons to purchase a new car every two years free of vehicle registration tax and VAT to a maximum of £7,500 if the qualifying person is the driver, and £12,500 if he or she is the passenger. In addition, the scheme provides for the refund of excise on up to 600 gallons of fuel for an exemption from annual road tax. It is estimated that the scheme cost £22 million in 2000, excluding the annual road tax costs.

The mobility allowance, which is a monthly payment administered by the health boards, provides financial support to severely disabled people who are unable to walk or use public transport and is intended to enable them to benefit from a change in surroundings – for example, by financing the occasional taxi journey. The rate of the allowance is being doubled to a maximum of £90 per month from 1 April next, and it had been envisaged that from that date persons who benefit from the disabled drivers and disabled passengers (tax concessions) scheme would be unable to also avail of mobility allowance.

In consultation with the Minister for Finance, I have been considering this proposal in light of concerns expressed and representations received about the impact of complete cessation of the mobility allowance on some affected individuals, and it has now been decided that while the increased rate of £90 per month will, as intended, be given only to people who are not also enjoying tax subsidies, those benefiting from both schemes should retain the mobility allowance at the existing rate of £45 per month. I will continue to keep the matter under review.