EU proposals could lead to a rental car shortage in Ireland which will hurt rural tourism
Ní Mhurchú raises significant concerns about a shortage of rental cars and the impact this would have on rural tourism. Her concerns come as the EU Commission considers forcing rental car companies to switch to electric vehicles in a shorter timeframe.
As the summer season kicks off in Ireland, Ireland South MEP Cynthia Ní Mhurchú has called on the EU Commission to clarify their proposals that would force rental car companies to switch their entire feet over to electric vehicles in a very short period of time.
Ní Mhurchú, who is a high-ranking member of the EU Tourism taskforce, said there is no charging capacity currently available to car rental operators at Dublin Airport, but 52% of all car rentals in Ireland originate from Dublin airport.
“Forcing car rental companies to go electric before we have the necessary infrastructure in place will damage rural tourism by making rental cars more expensive and less available”
“I am 100% in favour of the switch to electric vehicles but if we put the cart before the horse in this case, we will hurt rural tourism in areas such as Clare, Cork, Kerry, Wexford and beyond. That means lost jobs for coastal communities and that is something I cannot stand over”
Ní Mhurchú welcomed existing targets that all new cars purchased from January 2035 be zero emission cars. Her concerns are around the news that the EU Commission is now considering the introduction of mandatory electric vehicle quotas for corporate fleets ahead of the 2035 deadline as part of legislative initiative to be published by the end of 2025. This would mean that rental car companies would have to switch to electric before the 2035 deadline.
According to Ní Mhurchú, the car rental industry in Ireland could not cope with such a burden and it would ultimately lead to less rental cars at a higher price.
“We need to learn to walk before we can run and yes, car rental companies should go electric but we need to invest in the charging infrastructure across Europe first, in particular at Dublin airport where 52% of all rentals come from. We are making strides in developing the infrastructure, with Minister O’Brien announcing a large investment in charging infrastructure last week, but it takes time.”
“Irish tourism depends heavily on the car rental sector. Rental cars allow tourists to travel to remote parts of Ireland, where there isn’t the necessary charging infrastructure. Tourists would be dependent on public charging points, and we just don’t have enough in rural and remote parts of Ireland, as things stand”
According to Ní Mhurchú, the proposals are well meaning but more time needs to be given to allow rental fleets to transition smoothly.
“This timeframe will lead to a higher turnaround time for rental cars, and higher costs for rental car companies, meaning higher rental costs for tourists with less available rental cars in the short to medium term”
Ní Mhurchú says this will have a knock-on impact on the more rural parts of Ireland where tourists now visit because they can get readily available affordable rental cars.
The Car Rental Council of Ireland, cite higher maintenance costs of electric vehicles and argue that the average cost of renting an electric car is currently 33% higher than the average cost of renting a traditional car in Ireland. That average cost includes the current VRT relief.
Similar proposals to those now being considered by the EU Commission have already been rejected by the incoming German government, as well as in Austria, Belgium, Bulgaria, Czechia, Finland, Italy and Slovakia. Ní Mhurchú has called on the EU Commission to clarify their position and what impact any such proposals and new timelines would have on Irish Tourism.
ENDS
