John Gormley (Dublin South East, Green Party)

If Deputy Stagg starts reading it now, he will probably get to the end of it before I complete it.

The local government fund plays a key role in funding non-national roads. Regional and local roads, which represent approximately 94% of the country's road network, serve an important economic role. They also have valuable social and community functions. While we have experienced increased urbanisation and a move away from agriculture in recent times, the network of non-national roads is still necessary to provide mobility within and between local economies and to provide vital links to the strategic national road network and the ports and airports which are our links with the wider European economy.

The impact of the non-national road network on regional development takes on an added importance as we move forward with implementation of the national spatial strategy. Investment in strategic non-national roads is critical to developing our gateways, hubs and other growth centres. Investment within and between these centres and their hinterlands plays a key role in improving connectivity, circulation and facilitating the development of strategically placed landbanks. The programme to develop and maintain the non-national road network is not confined to urban centres. It is vital for rural communities that improvements in transport infrastructure continue to be implemented. The programme also has an important road safety dimension in the context of increased safety measures.

In terms of funding, the national development plan provides that approximately €4.3 billion will be invested by the local government fund and the Exchequer in the non-national road network over the period of the plan. While responsibility for non-national roads is transferring to the Department of Transport, the fund will continue to provide significant resources towards the development and maintenance of the network. This year alone, €520 million is being provided from the local government fund.

In 2007, approximately €948 million in general purpose grants has been provided to local authorities from the local government fund. These grants are my Department's contribution to local authorities towards the gap between the cost of providing an acceptable level of day-to-day services and the income they obtain from other sources. The amount provided this year represents a significant increase over that provided in 2006 and is a clear signal of the Government's commitment to the local government sector and a recognition of the importance it attaches to local democracy.

The new rates set out in the financial resolution will apply to motor tax discs and trade licences taken out for periods beginning on or after 1 February 2008. Rather than read out the new rates for the long list of vehicles involved, I will highlight for the House the impact of the proposed changes for private cars and goods vehicles which make up 91.5% of the national fleet.

For the lowest engine size car of under 1,000 cc, the annual increase is €14, or 27 cent a week. For cars in the 1,001 cc to 1,400 cc range, the annual increase is between €22 and €28. For cars in the 1,401 cc to 1,700 cc range, the annual increase is between €30 and €39, representing a weekly increase of between 58 cent and 75 cent. For cars in the 1,701 cc to 2,500 cc range, the annual increase is between €46 and €78. The remaining cars over 2,500 cc will attract annual increases of between €106 and €148. In summary, the extra costs for 95% of the car fleet, namely, those under two litres, will be between 27 cent and 98 cent a week.

For goods vehicles, the effect of the 9.5% increase will vary depending on the size, in weight terms, of the vehicle. However, I emphasise that approximately 87% of goods vehicles are at the lowest level of charge, meaning that they will pay an annual increase of €24, or 46 cent per week. A 9.5% increase is also proposed for trade licences, or trade plates as they are known. These are the registration plates used by motor traders on vehicles temporarily in their possession, in lieu of taxing such vehicles. The increase for a pair of trade plates will be €25.

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