Dan Boyle (Cork South Central, Green Party)

Thought should be given not only to reviewing VRT but to the wider reform of motor taxation. Despite the increase in figures the Minister cited, people should be encouraged to own cars, particularly because of the Government's policies in regard to public transport, but where the use of cars is avoidable, especially in urban areas where public transport should be available, that is where the focus of our taxation policy should be.

The Minister's earlier crack in regard to energy tax convinces me that he does not understand that tax measure. It is a tax per volume rather than an ad valorem tax. If the Minister did what the ERSI recommended and reduced VAT and excise duties, whenever an increase in inflation in fuel prices occurs, the tax would remain the same. One need only compare the idea of vehicle registration tax and annual registration tax to the approach in other jurisdictions where as much as possible the bias is placed on the usage of vehicles and not on engine capacity. It is placed more on the effect to which Deputy Burton referred, namely, the effect and weight of the vehicles as much as on access to public transport in communities. If that is not the approach taken, as the Minister said in his reply, vehicle registration tax only exists to give the impression that we are lowering other headline taxes such as corporation tax and personal income tax.

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