John Gormley (Dublin South East, Green Party)

However, the funding of local government must be broadened if it is to be sustained. As set out in the Green Paper on Local Government, which I published last April, I am strongly of the belief that we need to strengthen the role of local government in Ireland. The institutional and political reforms to be included in the forthcoming White Paper need to be accompanied by reforms of local government funding. We have begun that process with the new measures to broaden the revenue base of local government announced in today's budget.

I will now highlight for the House the impact of the proposed changes for private cars and goods vehicles. These vehicles make up more than 91% of the national fleet. For private cars taxed on the basis of engine size the extra cost for most motorists will be between €7 and €13 a year — that is between 13 cent and 25 cent a week. This relates to more than 50% of the national car fleet which is made up of cars under 1400 cc. For the remainder of the car fleet up to two litre the annual increases will be from €14 to €24 and from two litre upwards an additional €30 to €75 per year. In summary, the extra costs for 94% of the car fleet, that is those under two litres, will be between 13 cent and 46 cent a week.

For private cars on the new CO2 based system, bands A to D will see an annual increase of between €4 and €17, while for bands E, F and G the annual increases range from €30 to €100. For goods vehicles the effect of the 4% increase will vary depending on the weight of the vehicle. However, I emphasise that 87% of goods vehicles are at the lowest level of charge, meaning owners will pay an annual increase of €11 or 21 cent per week.

A 4% increase is also proposed for trade licences, or trade 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 €12. This financial resolution will cease on the enactment of the relevant Bill, which will be presented to the House at the earliest possible date.

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