Catherine Murphy (Kildare North, Independent) | Oireachtas source

I am not opposing the Government's amendment but I am opposing the section. The whole idea in 2008 was to change the culture whereby people who bought more fuel-efficient cars were rewarded through the tax code.

The other aspect of this to which I wish to draw attention is the issue of the motor tax fund. Last week when we were debating this issue, the Minister for the Environment, Community and Local Government said that most of the motor tax fund is ring-fenced for local authorities. However, he also said that €150 million would be taken out of that fund this year to pay down some of our national debt.

This is not about motor tax at all. This issue is a major source of complaint from the public. People are paying into a fund. The motor tax rates are being increased but the public does not see a return for its money. For example, there is a competition to located the biggest pothole in the country. There is a practice of labelling taxation, such as the carbon tax, for example, yet this tax goes into the general fund. Similarly, this tax is being called a motor tax but it will go towards paying off the national debt. Another example is the property tax which is not really a property tax because in many cases it is a tax on a debt as the householder is still paying for the house.

I note a dangerous development. We are ruining the prospect of people changing the type of vehicles they buy. When they see that their roads are deteriorating, yet they are paying more tax it is no surprise that there is resistance and it is an understandable resistance. The Government needs to take that on board in its taxation policy because if there is not compliance, the whole system fails.