Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 83:

In page 96, line 32, after “where” to insert “, on or after 1 February 2020,”.

This relates to the vehicle registration tax, VRT, relief on certain hybrid vehicles. The Minister decided in budget that the overall VRT changes to bring them into line with the new WLTP emissions system would be pushed out to 2021, and that is a decision I welcome and think correct. However, section 50 could have quite serious implications for the sale of hybrid vehicles. I know the Government has very ambitious targets for the sale of electric vehicles and it is to be hoped those can be achieved. For many people, however, the hybrid vehicle could be a good stepping stone towards a full electric vehicle.

The Minister is proposing to restrict the VRT relief on certain vehicles so that the relief only applies to cars with CO₂emissions of 80 g per kilometre or less. It is my understanding that up to 70% of hybrids in the market will be excluded from the rebate next year. I want to tease this out with the Minister. Could it lead to a potential consequence where the price of hybrids relative to the price of diesel and petrol cars is going to increase in 2020 and, as a result, that could have an impact on consumer behaviour and the decisions individual consumers are going to make? Conventional hybrids are, for some people, the only option to move away from diesel vehicles, particularly in very rural areas. It was always anticipated that when the new VRT system came into place, there would be no need for a VRT rebate for hybrids and they would simply live by their emissions figures, as such. Now, for one year only, 2020, we have the old system using what are essentially discredited emissions measurements but no rebate for the majority of low-emitting hybrids.

This could create a distortion within the market. Dealers will have ordered vehicles for sale in the early part of 2020 and the amendment seeks the Minister's support for postponing the implementation by one month in order that the cars ordered for 2020 will be allowed to be cleared through the system.