Finian McGrath (Dublin North Central, Independent)

I welcome the opportunity to speak on the Motor Vehicle (Duties and Licences) Bill 2008. It is important to remind people responsible for motor vehicles of road safety because of the massive scale of road accidents here every day. Apart from responsible driving there is a role for others involved in transport. There are incidents of bad practice on the part of cyclists who often jump red lights and cause havoc for motorists. We need sensible and radical measures to deal with this because there are too many injuries and deaths on our roads. While I accept the accident rate is higher because there are more vehicles on the roads people must drive responsibly. People cause accidents through speeding and dangerous driving.

There is an onus on car manufacturers to get involved in the debate about CO2 emissions. Progressive people in the industry are considering ways to build new types of environmentally friendly vehicles. They need also to consider noise pollution, and speeding. I have raised this issue many times when discussing vehicles.

On 30 January last I asked the Minister for Justice, Equality and Law Reform to bring in a new law on vehicular manslaughter. The Minister drew my attention to the Law Reform Commission's report on Homicide: Murder and Involuntary Manslaughter and added:

In respect of the criminal offence of manslaughter and related motoring offences the Commission has recommended that the existing road traffic offence of dangerous driving causing death should continue to exist alongside the more serious offence of manslaughter. It would therefore be the case that where there is a very high degree of culpability, a driver responsible for a road death could be prosecuted for manslaughter.

The Commission has also recommended the creation of a new offence of 'careless driving causing death' to deal with fatalities caused by careless motoring. The aspects of the Commission's Report relating to motoring offences are, of course, matters for The Minister for Transport.

I also raised with the Minister of Transport the issue of compulsory testing for alcohol of all drivers involved in road traffic accidents. Following representations received from various bodies, the Minister of State at the Department of Transport, Deputy Seán Power, said that "the Department of Transport proposes to engage with the Office of the Attorney General to establish how the current legislation can be amended to achieve roadside testing of drivers involved in serious collisions subject to overriding medical circumstances". These are sensible ideas and we need to include them in this debate.

The detail of the Bill is set out in the explanatory memorandum. The purpose of the Bill is:

(i) to give a permanent legislative basis for the motor tax increases effective from 1 February 2008 under a Financial Resolution passed by Dáil Eireann on 5 December 2007, and

(ii) to provide for a new motor tax system based on CO2 emissions for new and pre-owned imported cars registered on or after 1 July 2008, as announced in the Minister for the Environment, Heritage and Local Government's Carbon Budget on 6 December 2007. . .

The Financial Resolution passed by Dáil Eireann on 5 December 2007 provided for increases of 9.5% for cars below 2.5 litres and 11% for cars above that threshold. A 9.5% increase also applied to goods and all other vehicles, with no increase for electric vehicles. Trade plate licences also increased by 9.5%.

Motor tax receipts are paid directly into the Local Government Fund which is ringfenced exclusively for local authority purposes. It is estimated that the increases will generate additional revenue of about €83 million in a full year.

Ringfencing is the key word in this paragraph. Other Departments should do this too because we need to face up to this issue. Local authorities have a responsibility to be more actively involved. I will advise my colleagues, particularly people who serve as councillors throughout the country, that it is important for them to make sure that their county and city managers are called to account to ensure that the revenue is spent in a sensible and logical way. The sum of €83 million is a lot of extra money going into the system. The explanatory memorandum continues:

In Minister Gormley's 2008 Carbon Budget, he announced that, for new and pre-owned imported cars registered on or after the 1 July 2008, motor tax would be based on CO2 emissions rather than engine size, and that the new system would be accompanied by an informative labelling system. Existing cars would continue to be taxed on the basis of engine size.

The new system will involve the same seven CO2 bands as the new vehicle registration tax (VRT) system announced in Budget 2008, also to apply from 1 July 2008. Annual motor tax rates range from €100 a year for the greenest cars, to €2,000 for cars with the highest emissions rating.

It is fair and responsible to charge only €100 a year for the greenest cars which help the environment and health. The explanatory memorandum:

Section 3 involves a technical change, reducing the threshold from €114 to €99, above which a person can obtain a 3 or 6 monthly tax disc, to facilitate those paying the lowest rate under the new CO2 system. . .

Section 5 introduces two new definitions, related to the new CO2-based motor tax system, into Part II of the Schedule to the Finance (Excise Duties) (Vehicles) Act 1952. It also provides in that Schedule for revised motor tax rates for vintage/veteran vehicles.

Section 6 provides for increased fees for trade plate licences and replacement trade plate licences in respect of motorcycles and all other vehicles.

Sections 5 and 6 constitute sensible options and should be considered by Members. The memorandum states:

The Schedule sets out the new motor tax rates for all vehicles except the rates for vintage/veteran vehicles, which are provided for in section 5, and the fees for trade plate licences, which are provided for in section 6. Paragraph 6(d), provides for the new CO2 tax classes and associated rates.

The insertion of a new schedule of rates is in keeping with the past practice, so that one can see at a glance the taxation class and relevant tax rate.

These are the details of the legislation and are important parts of it. The key points are the environmental impact it will have and the health and safety issues that are directly involved in this issue. There is a general consensus among all Members of the Oireachtas that they must act on this issue. It is important to make this point both in the legislation and in this debate.

Earlier in the debate, I heard some Members criticise the Green Party. The Green Party is making a contribution to the Government and I welcome its impact in this regard. Its members are bringing forward some policies with which many people agree. I do not accept much of the criticism that is taking place at present. The two Green Party Ministers, Deputies Gormley and Eamon Ryan, are making an effort to do something in respect of their speciality, which I welcome, as do most objective people. I do not accept the criticisms that were made previously. While anyone may make mistakes, the bottom line is that both Ministers are doing their best, often against the odds, and I accept they have some highly sensible policies. There will be strong support for them from all Members of the Oireachtas.

I will revert to the legislation. I refer to the motor tax rates that will apply to new and pre-owned imported cars registered on or after 1 July 2008. They are set out in paragraph 6(d) of the Schedule to the Bill, which will replace Part 1 of the Schedule to the Finance (Excise Duties) (Vehicles) Act 1952. The rates will be graduated as one moves up through the CO2 bands and it is important to consider the bands in detail. As the Minister stated:

For band A, which corresponds to CO2 emissions not exceeding 120 g per km, the motor tax rate will be €100. The rate for band B, which corresponds to CO2 emissions of greater than 120 but not exceeding 140 g per km, will be €150. The rate for band C will be €290, which corresponds to CO2 emissions of greater than 140 but not more than 155 g per km. Band D, which corresponds to CO2 emissions of greater than 155 but not exceeding 170 g per km, will attract a rate of €430. The rate for band E will be €600 . . . Band F, which corresponds to CO2 emissions of greater than 190 and not more than 225 g per km, will attract a rate of €1,000. For the top band, band G, the rate will be €2,000, which reflects CO2 emissions of more than 225 g per km.

These details are important in the context of the legislation. As this debate pertains to vehicles and transport, I will mention again a project that was carried out in my constituency, the Dublin Port tunnel. It was a major project and many Members criticised the manner in which its costs went over budget. However, one should bear in mind that the residents, particularly in Santry, Marino and Drumcondra, were proved right in respect of their concerns. I am glad to note that compensation has been paid to many families in respect of the damage done. The bottom line is that they warned that certain aspects of this project were dangerous and the residents of my constituency were proved to be right. While a number of outstanding cases remain to be settled, I welcome the fact that many families in Dublin North-Central, particularly in Marino, Drumcondra and Santry, have now received their compensation. This is an important matter.

I raised this issue because all angles must be considered when one is engaged with major infrastructural transport problems that deal with trucks, cars and emissions. While cost must be one such angle, public safety and the issue of damage to people's homes was not taken on board at the time.

Another aspect of this debate to which I referred previously concerns the issue of tax. I mentioned the figure of €83 million in respect of this Bill, which to many people is an enormous sum of money. This is money that must be spent. It is taxpayers' money and belongs to people who drive their cars and pay their taxes every day. Many people pay a lot of tax in Ireland and I commend the vast, silent majority who so do. However, as legislators, Members have a responsibility to ensure that everyone pays their tax, which is very important.

This leads to the issue of public spending. Were taxes to be spent on sensible public service projects many people would be highly responsible and supportive. I raise this issue because the issue of tax is germane to the Bill. The important point is that taxpayers' money should be spent on quality public services. Those who work in such services also have a responsibility to ensure they are delivered in a sensible fashion. When I heard the recent criticisms from the Minister for Transport, I agreed with him. People in local authorities who are not doing their jobs in respect of this issue should accept responsibility for not so doing. Members also have responsibility in this regard. Parts of this country that do not have quality roads deserve them as a right. This applies to everyone, particularly in rural Ireland where there are many places in which the roads are not at the same standard as obtains in urban areas. Members who do not necessarily represent rural areas should be highly supportive in this regard because many tragedies take place on such small country roads. I also heard Members' comments on signposting and other aspects of this issue. I mention motor car manufacturers, which have a responsibility to create and design cars that are safe for the public. Members will agree this issue is also linked to this debate.

I agree with the Minister for the Environment, Heritage and Local Government, Deputy John Gormley, when he stated "the clear objective of this new motor tax system is to influence the purchasing decisions of consumers". This is an important objective of the legislation as Members must try to influence the purchasing decisions of consumers. He went on to state "purchasers of cars with low CO2 emissions will be rewarded while a premium will be charged on vehicles with high CO2 emissions". In other words, good practice will be rewarded, which is important. As noted previously, he stated:

. . .from 1 July 2008, anyone buying a new car or importing a pre-owned car can make a choice for the environment by purchasing a low CO2-emitting car and thus enjoy a lower rate of motor tax. . . . Alternatively, if the choice is to purchase a high CO2 emissions car, a higher rate of motor tax will apply.

This also is fair. It is both a contribution to the environmental issues and a major contribution to issues pertaining to health and safety. The latter constitutes a highly important part of the legislation.

I refer to the number of new vehicles that are bought every year. I understand approximately 150,000 people buy new cars every year in this country, which constitutes a huge market. There is an opportunity for the motor industry, garage owners and people to become directly involved in the battle to do something about climate change and the creation of a healthier environment. Everyone has a part to play and this is not simply a matter for Ministers or Oireachtas Members. Many sections of the public are ahead of the posse on this issue and frequently do not object to taking the hit if it will lead to a cleaner and safer environment. Many people can be highly sensible in respect of this issue.

In his contribution, the Minister also referred to the significant role that the local government fund has played in the financing of local government since its establishment in 1999. He stated "total funding for 2008 amounts to . . . €1.6 billion, which represents approximately 30% of local authority current funding requirements". He then referred to the details by stating "The fund comprises two elements — [the] Exchequer contribution of €545 million and the proceeds of motor tax, which are projected to reach €1,080 million for 2008." Members can see that as a massive amount of revenue is involved, this constitutes an opportunity for everyone to do something in this regard. It is important to invest in safe cars of a high quality and to ensure the provision of safe roads of a high quality for our drivers.

One should consider the manner in which the local government fund plays a key role in funding regional and local roads. These roads represent 94% of the country's road network and play an economic role. They also have important and valuable social and community functions. I emphasise the importance of local roads in the development of the economy.

Public transport and its development comprise a very important part of this debate. I welcome some of the progressive measures in the legislation but the reality is that we must do more, particularly in respect of train and bus services, especially on the north side of Dublin. I will continue to push for these services.

I raised the issue of the motor industry. Some have concerns about the legislation and I accept some of them and the fact that they need to be addressed. I have no doubt Deputies will become more involved in this debate. I am not saying I want to block anything but we must have a broader debate.

The objective of this legislation is to reduce carbon dioxide emissions. It represents a beginning and it is progressive. I am concerned about certain aspects of the Bill but it is very important that we all participate in this debate, particularly in respect of road safety, safer vehicles and taxation. I welcome further debates on this important matter.

See this speech in context