Oireachtas Joint and Select Committees

Thursday, 8 March 2018

Public Accounts Committee

2016 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 8: Central Government Funding of Local Authorities
Local Government Fund Financial Statement 2016
Special Report No. 97 of the Comptroller and Auditor General on the Administration and Collection of Motor Taxes

9:00 am

Photo of Seán FlemingSeán Fleming (Laois, Fianna Fail)
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To conclude the section, I shall ask a few questions as Chairman that were not asked to date, primarily on the transport area.

Deputy Cassells mentioned that people who pay their motor vehicle tax give out if the roads in their areas are not being maintained. This link has always been there in the public mind, especially in rural areas. People who pay their motor tax expect some payback for it in terms of the roads. I want to read a paragraph from Mr. John McCarthy's opening statement in which he indicated:

As the committee is aware, from January 2018, responsibility for motor tax transferred to the Department of Transport, Tourism and Sport, with consequential implications for the local government fund. In particular, motor tax proceeds are now paid directly into the Exchequer rather than into the fund ...

The link people believe is there was firmly broken and discontinued as of 1 January. Since that date, motor tax goes straight into general Exchequer funding. I want to put this on the public record. It is no secret, but it will be a shock to most people because they have always felt that there is a link between their motor tax and the maintenance of roads. Since 1 January last, however, it is part of general taxation and it goes directly to the Exchequer. I know people will say that money can come back in the other direction to make up for it, but the direct link people perceived existed has been broken. That will come as a bit of a surprise but I wanted to say it.

I want to make a few points on the Department of Transport, Tourism and Sport. It pays special grants to local authorities for local roads. I do not want the witnesses to go into too much detail. There is a mechanism for national, primary and secondary routes, but where is funding obtained for a regional road to be improved? If a town wants an inner relief road that is not part of the national plan how does it work through the system? Is it based on submissions from each local authority? What type of ranking system does the Department have nationally? I would like a brief word on this. Do not spend too much time on it because time is running out.