Stephen Donnelly (Wicklow, Independent) | Oireachtas source

I want to start with a technical question. I know the bands have been moved around but, by and large, the tables seem to be pretty much the same. If my note is correct, the estimate for the tax yield is €50 million, but where is that sum coming from? I may be wrong, but a comparison of the tables does not seem to show too many differences. Perhaps the Minister could explain where the €50 million comes from. Is it from the higher end, from the lower end, or from the moving around of certain bands?

I agree with consumption tax and with the provisions whereby more environmentally friendly cars are incentivised. There is a missed opportunity here, however, so perhaps the Minister could consider it for next year's budget. The percentages could be changed more, particularly at the lower end. The provision of really attractive tax-based incentives for highly environmentally efficient new cars is something that has been done quite successfully in the United Kingdom. This is a reasonable progression, but there is potential, with regard to super-environmentally friendly cars, to ratchet down the percentages significantly at the lower end. Maybe that could be offset by increasing them a bit more at the higher end. Will the Minister examine that matter?

I support what Deputy Doherty said. As the Minister knows, the motor industry is absolutely on its knees. This will take an extra €50 million in taxes from new car purchases.

Of course the purchase of a new car is a discretionary spend, by and large, because one could upgrade to a second-hand car. The consumer price of new cars here is vastly more expensive than in the UK, where I used to live. I do not know whether the prices have been ratcheted up by these rates and by VAT, or whether it is just price-gouging by manufacturers who are creaming off higher profits here. If the Minister knows which it is, perhaps he will let me know.