Michael Fitzpatrick (Kildare North, Fianna Fail)

I appreciate the opportunity to speak on the Bill, which is very important for local authorities, our environment and with regard to CO2 emissions. The Bill is a necessary follow-up to the finance resolution on motor tax rates and trade plate licences which was passed by the House on 5 December 2007. This provided for only limited statutory effect and needs to be replaced by a Bill which provided a permanent legal basis.

The Bill will also provide statutory effect to the new CO2 based motor tax system for new and pre-owned imported cars registered on or after 1 April 2008, which was announced in the carbon budget on 6 December 2007. This new motor tax system compliments the new CO2 based vehicle registration tax, VRT, system provided in the Finance Bill 2008.

The increased revenue arising will be paid into the local government fund and this is a welcome commitment in the Bill. Since 1999, all motor tax receipts, including driving licences and so on, have been paid into the local government fund, which is supplemented by the Exchequer. Having the fund ring-fenced exclusively for local authority purposes is extremely important. The distribution of the fund to local authorities as discretionary grants in respect of day-to-day spending requirements and also as grants in respect of expenditure on our local and regional roads is to be welcomed. From these increases, an estimated €40 million additional revenue will be generated in a full year for spending on our roads.

I welcome the Minister's comment on local authority reform and his commitment to local authorities. We in Kildare have for some time believed we do not receive a sufficiently large grant from this fund relative to our heavily trafficked roads in County Kildare. I ask that the Minister look at the allocation from the fund in a different way from the current system of mileage of public roads, which would bring increased fairness and equity into the system. I could also refer to other counties around Dublin where traffic is far heavier than it is in counties removed from the Dublin area.

Something in my constituency that has come to my attention recently is the number of JCB Fast Track tractors and other similar type vehicles drawing out of farms and sand and gravel pits. They are also found at road building sites and building sites. These vehicles can travel at 50 km/h and I understand the newer ones can do up to 60 km/h. They draw loads of 16 to 23 tonnes and are driven by persons as young as 17 on provisional licences using green diesel which costs approximately 50 cent per litre. I suggest the vehicle tax on this type of vehicle should be increased when they are used for the purposes of drawing loads on public roads and not being used for agricultural purposes.

These vehicles compete with eight wheel, four axle rigid trucks which carry a legal limit of 18 tonnes. These lorries use white diesel which costs approximately €1 per litre and carry motor tax of approximately €2,500. They are driven by mature drivers to keep insurance costs down. The competition is unfair and in the present climate many of the lorries of those who were known in the past as "hackers" are lying idle in their yards. They see this other type of vehicle being used and it is unfair competition.

I want to comment on vehicles which are more than 30 years old. The reduced tax on these vehicles sends a clear signal to vehicle enthusiasts that we appreciate the important work they do in the preservation of old vehicles. I would go further to say that the Government should grant aid communities and individuals who undertake this important preservation work on a range of vehicles, such as agricultural and motor vehicles, on condition that they make them available for public display within their communities and that the preservation work is carried out under the guidance of a recognised restorer.

I welcome the provisions in sections 3 and 4 for amendments to the Finance (Excise Duties) (Vehicles) Act 1952 in particular on the definition of "CO2 emissions" which will be applied directly to the finance law on the new vehicle registration tax system. This means all relevant definitions common to the new motor tax and VRT systems are derived from the same source and ensures uniformity in both tax systems.

Our countryside has a good range of petrol and diesel filling stations and shops for all types of commodities. However, the time has come to encourage a nationwide system whereby people driving battery operated vehicles can pull in, change the battery and move on. During yesterday's debate we were told a battery could bring us from Dublin to Galway. Where would one go to recharge the battery? One would have to pull in and spend five hours recharging it.

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