Eamon Scanlon (Sligo-North Leitrim, Fianna Fail)

This Bill is another element in the process of encouraging innovation in the use of motor vehicles. We are increasingly aware of the effect of car use on the environment. In that context, the launch of the new vehicle labelling system last June was a welcome development. The changes that were made to the vehicle registration tax and annual motor tax regimes for new cars registered on or after 1 July 2008 will lead to a reduction in this country's vehicle emission levels. The decision to calculate tax levels on the basis of carbon dioxide emissions from vehicles, rather than on the basis of engine size, was made to emphasise the importance of the environmental effects of emissions from cars. Innovation is crucial if we are to deal with this issue. Seven emission tax bands have been created. The level of vehicle registration tax and motor tax payable is determined by the relevant band for each vehicle. The introduction of a new labelling system, which is designed to reflect the seven emission tax bands, is a key element of the process of balancing the vehicle registration tax and motor tax regimes on the basis of carbon dioxide emissions. This progressive policy is in line with everyone's wish to have a cleaner and greener Ireland.

The purpose of these changes is to incentivise consumers to purchase vehicles with lower carbon dioxide emissions. This is an important step in reducing national greenhouse gas emissions and meeting Ireland's commitments under the Kyoto Protocol. The clear objective of the new carbon dioxide-based tax structure for cars is to influence the purchasing decisions of consumers by rewarding the buyers of low-emitting cars and charging a premium on less efficient vehicles. It makes sense and will have long-term positive effects for generations to come.

Motorists buying a new car can now make a positive choice on investment and environmental grounds by purchasing a low-emitting vehicle. As well as enjoying the benefits of a lower rate of motor tax and any saving on the pre-July purchase price of the car, they will be making a positive personal contribution to the national response to climate change. Anyone who makes the choice to purchase a high-emitting car, on the other hand, will have to pay a higher rate of motor tax, in addition to any price rise as a result of the VRT changes.

In 1999, an EU directive introduced labelling for all new vehicles, including specific requirements to provide consumers with information on fuel economy and CO2 emissions. Our new system, introduced in July, will strengthen these existing EU requirements. The new labelling system is consumer-friendly, making it easier for users to engage with the process. The seven colour coded bands are familiar to consumers from the energy label for certain electrical goods, such as fridges, washing machines, electric cookers and light bulbs. The intention is to assist buyers in evaluating the environmental impacts of different cars, as well as providing guidance for them on purchase and running costs. Improvements in vehicle labelling are a positive step in enabling Irish motorists to make a direct personal contribution to combating climate change. We all have a part to play in securing a more environmentally friendly future for those who come after us. This Bill plays a part in doing that, and is a welcome development.

I take this opportunity to acknowledge the improvements to national primary roads throughout the State. The N4, for example, is significantly improved, although much work remains to be done. I understand the Minister is currently reviewing plans to upgrade the stretch between Castlepollard and Kilcooley. There have also been major improvements to the N16 and N17, providing links between the south, west and north west. I look forward to further improvements on these routes.

I acknowledge also the contribution of Iarnród Éireann in regard to the improved rail service between Dublin and Sligo, with the provision of eight trains per day in both directions. This is a welcome and popular development which is being availed of by significant numbers of commuters. One can now get to Dublin from Sligo for 9.10 a.m, with the last train returning to Sligo at 7.30 p.m. or 8 p.m. This is an important contribution to reducing the number of people obliged to travel by car from the north west for hospital appointments and so on. It is an encouraging development.

I welcome the Bill. I am confident it will have positive effects for the future, particularly for the next generation.

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