Phil Hogan (Carlow-Kilkenny, Fine Gael)

The increase in emissions in the transport sector is so much that it is making any overall reduction target, Government or otherwise, difficult to meet. This situation did not happen overnight and it is not a surprise to policymakers, environmentalists or even commuters. Years of under-funding and lack of investment in our public transport have cost us dearly, not only in CO2 emissions but also in traffic congestion and commuter times. I could spend the rest of my contribution detailing all that is wrong and inadequate with public transport, from delayed metro lines and disconnected Luas lines to bus monopolies. Commuters, however, are left with no choice but to get into their cars and travel into gridlock because the Government has not given them any choice. The Minister now intends to fix the transport emissions problem by increasing car tax.

This Bill is no more or less than a revenue-raising exercise. To be fair to the Minister he has acknowledged that and admits it readily. He got the opportunity to do a few other things, which I will deal with later. He could have included other matters in the legislation but primarily the Bill aims to encourage people to purchase low-emission cars after 1 July 2008 and make some impact on the current unsustainable level of carbon dioxide from car exhausts around the country. This part of the Bill is welcome and is one we can support. However, the Green Minister for the Environment, Heritage and Local Government has taken this concept and made it slightly meaningless in the Bill. The first part of this Bill — in giving a legislative basis for the motor tax increases recently brought in on all cars, based on the size of their engines — is a perfect example of the Minister saying one thing and doing another. The Minister would have us believe this Bill is the be all and end all of reducing car emissions, which of course it is not. The Bill does not reward or encourage consumers who have already made a conscious environmental decision to buy a new or second-hand car with low carbon dioxide emissions. The blanket tax increases of 9.5% for cars with engines up to 2.5 litres do not fit with the Minister's objective of encouraging people to be more environmentally aware. If the Minister was happy to increase the tax on a small car by 9.5% one could be forgiven for thinking the Minister would greatly increase the tax on larger cars but he did not do so. He only increased tax on cars above 2.5 litres by 11%. Some people may wish to purchase cars over 2.5 litres if they have the money to do so, and in such cases I would have sympathy with increasing tax on those vehicles. However, the 11% tax increase on larger vehicles will not make much difference to consumer choice.

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