James Bannon (Longford-Westmeath, Fine Gael)

When I raised the issue of our national monuments earlier, the Minister for Finance did not know when the national monuments Bill could be taken. The Minister, Deputy Gormley, should be aware that a large number of our national monuments throughout the country are becoming dilapidated. He was in the Chamber when I put the question to the Minister for Finance. It is vital that this Bill be brought forward as soon as possible.

Although appearing under the umbrella of the Department of the Environment, Heritage and Local Government, the Bill is essentially a financial one. It provides a permanent legislative basis for the motor tax increases approved by this House by way of financial resolution on budget day. As a money Bill it is subject to the same time constraints as the Finance Bill.

From an environmental perspective, the Bill contains a technical change to the definition of "CO2 emissions" to bring it into line with the definition in the Finance Acts. This means that all relevant definitions common to motor tax and vehicle registration tax derive from one source and ensures uniformity in both tax systems. Section 5 provides for increased fees for trade plate licences and replacement trade licences.

Fine Gael put down an amendment to the Motor Vehicles (Duties and Licences) Bill earlier this year to apply the new carbon emissions based tax system for all cars registered in the State since 1 May 2004. Instead of this new tax system applying only to new cars registered after 1 July 2008, it would apply to all cars registered since 1 May 2004, with the new tax rate applying at the next annual tax renewal for a car. The Minister did not accept that amendment, which I believe was short-sighted.

According to the Department of the Environment, Heritage and Local Government, new cars registered from 1 July 2008 will, for the purpose of motor tax charges, be assessed on the basis of CO2 emissions level, based on seven CO2 bands. Rates will range from €104 a year for cars with emission rates not exceeding 120 grams per kilometre to €2,100 for those with the highest emissions rating, that is, in excess of 225 grams per kilometre.

To the detriment of the home industry, the new CO2 based system will not apply to second hand imports registered abroad before 2008. Not only is the Government's administration of the CO2 based tax regime weak in that regard, it has also destabilised the second hand car market in Ireland.

The Society of the Irish Motor Industry, SIMI, has pointed out that an environmentally focused scrappage scheme would be an excellent opportunity for the Government, the motor industry and motorists to work together to made a greener choice by encouraging the trade-in of cars over ten years old against a low emissions new car, which would help in the reduction of CO2 emissions. That would have a dual benefit, both environmentally and with regard to kick starting the new car market, and give a much needed boost to consumer confidence.

What action is the Minister taking in terms of United Kingdom and Northern Ireland registered vehicles being driven on Irish roads without VRT or road tax, exempting them from incurring parking fines, speeding fines or penalty points and which are being imported by known dealers who do not possess a correct trader account number, TAN, or are not subject to VAT or TAX payments? Such trade is to the detriment of the native motor industry.

I have the list of vehicles exempted from motor tax liability and while of the 11 categories, nine have legitimacy, the first two cause me concern and puzzlement. Why should State owned and diplomatic vehicles carry such an exemption? I call on the Minister to end that inequitable situation. The onus to encourage the use of smaller, cleaner, fuel efficient cars, which it is hoped will help in the fight against climate change, should be seen to be spearheaded by those in such categories, including the Minister. Before he became Minister I would often see him arriving to Leinster House on a bicycle but recently he is using the car.

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