Dáil debates
Tuesday, 27 May 2014
Topical Issue Debate
Vehicle Registration
5:35 pm
Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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The next request is from Deputies Coonan and McHugh to the Minister for Finance regarding the delays in vehicle registration for motor home vendors. I do not see Deputy McHugh here.
Noel Coonan (Tipperary North, Fine Gael)
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I must apologise for Deputy McHugh, who cannot attend as he has been delayed in traffic. He has asked me to speak on his behalf on this matter. I thank the Ceann Comhairle for selecting this item. This is the high season for camper vans. If we look at the statistics that the Minister has supplied, we can see that their numbers are steadily declining, from a peak of 1,014 in 2009 to 126 last year. Part of the reason for this is the delay in registering motor homes. I will cite the most recent example that comes to mind. Last week, somebody sought to purchase a camper van from Pat Horan Motors, which was anxious to sell it. The vehicle had to go through the vehicle registration process and was eventually booked in on Friday evening after much pressure. Yesterday, the office was on a two-day week and one person failed to turn up, so there was nobody there in the morning. While somebody came in the evening, this added to the delay. Donaghey Motorhomes told me, through Deputy McHugh, that on 11 March it tried to book a date for a VRT test but received one 14 days later on 25 March. Both sales were lost, which is a loss to the Revenue Commissioners from a VAT perspective. On a sale of €82,000, the VAT lost is in the region of €15,337.
What is happening basically is the middle man is holding up the show. The Minister is interested in creating jobs and we are interested in protecting jobs but the customer service being offered to these dealers is appalling. What does the Minister plan to do to remedy this? Is he prepared to accept the unnecessary delays both in booking a registration and in having to forward documentation to Rosslare? When it eventually reaches Revenue officials, they are efficient in dealing with it. There is a problem and I would like the Minister to deal with it. I am anxious to hear his response to the problem.
5:45 pm
Michael Noonan (Limerick City, Fine Gael)
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Since 2011 Revenue has provided a service where motor dealers can avail of a pre-registration examination at NCTS centres. The examination provides for a vehicle to be pre-inspected, entered onto the Revenue database and then registered on-line through the Revenue Online Service as sales are made. This pre-examination service is specifically designed to facilitate motor dealers and to provide them with a speedy registration option especially given the surge in vehicle registrations since the beginning of the year, which is reflected in both new and used car sales.
Revenue has to value many of these vehicles on a case by case basis and provide a vehicle specific valuation code to be used when registering the vehicle because of a lack of volume in motorhome registrations - 228 registrations in 2013 and 84 so far in 2014 - and significant variation in vehicle specifications. The codes had a lifespan of 50 days and it was brought to Revenue's attention earlier this year that the time limit was too short and that, as a result, dealers were experiencing delays in registering motorhomes. Following a review, Revenue has extended the period of validity of the codes to 150 days.
Where a motor dealer does not use the pre-examination facility they will have to book an examination slot at an NCTS centre. The surge in vehicle registrations this year means that there are also spikes in demand at NCTS Centres and this will not always suit a motor dealer. The pre-examination system provided by the Revenue is designed so that dealers do not have this inconvenience. The availability of the pre-registration service and the recent changes to the period of validity of the valuation codes should ensure that registrations can be completed without delay. I am informed by the Revenue that any dealer with questions about valuation codes for motorhomes and their online registration should contact the Office of the Revenue Commissioners, Central Vehicle Office, Rosslare Harbour, Rosslare, County Wexford.
The Deputies' concerns are related to specific cases in their respective constituencies. I am informed that the extension to the period of validity to 150 days should deal with the matter in one of the Deputy's constituency - direct contact was made by Revenue with this dealer. The issues arising in the other Deputy's constituency may be related to the dealer not availing of the pre-examination service in the first instance. However, the Revenue can be contacted directly by the dealers on these issues.
Noel Coonan (Tipperary North, Fine Gael)
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I thank the Minister for his reply. It was difficult to hear him but I am sure I will get the written version of it.
The problem is somebody who wants to buy a motorhome will not hang around for two or three weeks to go through the registration process. They are going outside the country and that means business is being lost. The extended delay experienced by Donaghey Motorhomes and other dealers across the country with vehicle registration is having a negative effect on their businesses and it is likely to create problems for the people they employ. Donaghey Motorhomes has spent €20,000 upskilling its employees and the company has been informed that it not completed all necessary requirements and that is putting jobs at risk. Will the Minister make direct contact with the motorhome companies to resolve this issue and to deal with the difficulties? Previously, the motor dealer could go directly to the Revenue. It was an inconvenience but not a problem.
Why does Revenue not have a library of prices similar to that for cars? Why is a company that has a TAN number, a VAT registration number and employing 16 people, which deals directly with the Revenue, not allowed to register motorhomes, as was previously the case? This is about basic customer service. We got a lesson in that from the electorate over the weekend. One must deal directly with people and give them proper customer service. This is not happening in this instance. Will the Minister simplify the process and resolve the issue in order that a better service can be offered to those involved in the motorhome trade? Trade peaks on occasion during the year but it is limited and dealers should be dealt with promptly. Will the Minister meet representatives of the companies affected to sort out this issue to their satisfaction?
Michael Noonan (Limerick City, Fine Gael)
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The Revenue has taken action to address potential delays in vehicle registration requirements. Since 2011 Revenue has provided a service where motor dealers can avail of a pre-registration examination at NCTS centres. There was a difficulty where the period of validity for codes ran out after 50 days but the Revenue has extended this to 150 days and that will address the difficulty. Officials have examined the two cases brought to their attention by Deputies Coonan and McHugh. In one case, they contacted the dealer directly and that seems to have been resolved while they have invited the other dealer to contact them directly to see if that case can be resolved. I may be missing something and, therefore, I will bring the Deputy's submission to the attention of Revenue to see if further action is required.