Bernard Allen (Cork North Central, Fine Gael)

My party will oppose this Bill. I will start by quoting from Fianna Fáil's election manifesto of 2002: "The surest way to cause unemployment and undermine the public finances would be to implement unsustainable spending plans or to try to return to the days of high taxation." Those of us who fought the 2002 general election against the Government knew that it could not be trusted to keep this promise. We also knew it would saddle the country with higher taxes and unsustainable public spending. Even I am amazed that the Government would subject the country to the dangerous economic forces of both out-of-control public spending and increases in stealth taxes. In this morning's newspapers, there was another example of out-of-control public spending with public sector employment rising again.

Today, we are debating another increase in taxation through stealth measures, another step in the return to high taxation Ireland. Since the election, the Government has increased taxes 27 times. The taxes imposed range from credit cards to passports, from hospital visits to houses. Now further taxes on cars will be imposed. It is incredible that after two years of abusing the electorate's trust, the Government rolls out more increases.

Over the last 12 months, there has been a long list of punitive increases. Local authorities have been forced to introduce development levies of between €6,000 to €30,000, which will raise €700 million from house buyers. There are levies on industrial development which will make some counties uncompetitive against some of their richer neighbours. The drug payments scheme threshold was raised by €8 to €78 per month, the third increase in the year, with the result that people with chronic illnesses will be priced out of the health market. Accident and emergency charges are up from €40 to €45. As I said before, it is now cheaper to arrive with one's own trolley at an accident and emergency department. The cost of a private bed in a public hospital has increased 15%. The cost of an overnight hospital stay increased €5 to €45 per night, with a cap of ten nights per year.

Students did not escape these stealth taxes, with the third level registration fee increased by €80 to €750. The fees for junior and leaving certificate examinations have gone up €10 to €82 and €86, respectively. The fee for a standard ten-year passport will increase on 1 March by almost one third from €57 to €75. The cost of a three-year passport for infants aged up to three years will rise from €12 to €15 and a five-year passport for those aged between three years and 18 years will also rise from €12 to €25. The emergency fee for passport applications, processed outside of office hours, will go up €37 to €100 for adults. I will, however, concede that the price of a ten-year passport for senior citizens has been cut from €57 to €25.

Motor tax will rise by 5% in this Bill which is a perfect example of the Government's arrogance. The Bill increases taxes on private vehicles by an Administration that promised not to do so and to improve public transport. It has misled the electorate and failed in its duty. Were the state of our public transport not so lamentable, we might not be so concerned. As well as taxing motorists into the ground, the Government has failed to provide alternative methods of public transport. The Government's record in this area is already woeful. The construction of Luas is late. The Dublin metro project is years away. The rail network is one of the worst in western Europe. I had personal experience of it on Tuesday morning last, with a five and a half hour journey from Cork. The rural bus network is dreadful. This week the transport unions went on strike. Commuters are now driven to distraction, on to the roads in their cars, choking the streets and stuck in traffic.

As I said on 25 November 2003, the Fine Gael Party is opposed to the provisions of this Bill and the dreadful breach of the people's trust that we have seen by this Government in this Chamber.

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