Phil Hogan (Carlow-Kilkenny, Fine Gael)

All the rhetoric and soft talk seeks only to camouflage the fact that this legislation is a money-raising exercise. This is not a green tax. It will not help us meet our emission reduction targets or help the environment. The only benefit is that it will help to balance the books for the Minister and for the Minister for Finance.

The European Commission sent a warning shot across the Government's bow yesterday in regard to our impending economic difficulties and expected budget deficits. Instead of properly managing the economy and raising our economic competitiveness, the Government seems more likely to take the easy option of imposing yet another stealth tax. It seeks to spend its way out of trouble when it comes to our declining finances. The price of failure, however, will be placed squarely on the shoulders of those largely responsible for the Celtic tiger, namely, workers.

The Minister spoke about the objectives of the motor tax. I am aware he does not like motor cars but these provisions suggest he does not like motorists either. Since the budget, consumers have made fundamental decisions on the choice of car to purchase based on their understanding of the provisions the Minister would introduce. However, he has given motorists who made good environmental decisions no reward for doing so. One of several letters I have received on this issue summarises the matter well. The author, Mr. Murphy, states:

As an early adopter of the green message, I ordered a diesel vehicle before the Minister's pronouncements with the full intention and knowledge that I was doing my piece for the environment. My new car's CO2 rating is certified at 128g which would mean, under the new regime, a VRT reduction from 30% to 16% and an annual motor tax reduction from approximately €560 per annum to €90 per annum.

However, the lifetime restriction means this person will not receive the benefit of acting on his environmental concerns unless he buys a new car after 1 July 2008. Motorists were given little information on the new regime.

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