Olivia Mitchell (Dublin South, Fine Gael)

I agree the Department of Finance cannot but ensure that schemes are not amenable to tax evasion and that it has to be vigilant of abuse in cases where VRT is not payable. However, it is almost impossible for the car hire industry to implement the scheme as proposed without increasing its costs enormously. Even though car hire companies will have to be aware whenever a car reaches its 34th day of hire and pay VRT for outstanding days, they have no guarantee that customers will not move to the next company to hire a car for another 34 days. It is a cumbersome scheme which will increase the cost of car hire generally. The industry's understanding was that the moratorium on the implementation of this measure was imposed to allow time for consultation and changes.

This is a finance measure but the Minister has also to be conscious of the effect it will have on car hire by tourists, particularly in the regions. The car hire business exists for people who may fly into cities but want to travel to the regions. Will the Minister ensure meaningful consultation takes place before this section of the Act is implemented with a view to making the system less cumbersome for the industry so that it does not increase the price of car hire generally? Our costs are high enough as it is.

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