Christy O'Sullivan (Cork South West, Fianna Fail)

This Bill will provide a permanent legislative basis for the motor tax increases approved by the House on budget day. The motor car is part of life in our world today. It has changed the way we travel and increased the pace of life for many as is evident every day of the week on the roads throughout the country. A survey taken six months ago showed that almost two thirds of people planning to buy a new car would buy a vehicle with lower emissions if it resulted in paying lower motor tax. The poll, which was carried out by Red C for the Irish Taxation Institute, found that 55% of people would also consider changing their current car if it meant a lower tax bill.

The survey showed a strong awareness of changes in the car tax and vehicle registration system. A total of 59% of those surveyed said the changes to VRT would encourage the purchase of vehicles with a lower emissions rating. A total of 60% claimed the new VRT changes would make them more inclined to purchase a car with lower emissions. Regarding motor tax, 65% of people who planned to buy a car said they would be more likely to buy one with lower CO2 emissions if it meant saving money. Cost is the bottom line for many people. A total of 55% said they would be more likely to change their existing car to one with lower CO2 emissions in order to save on motor tax.

From 1 July 2008, buyers of new cars with lower CO2 emissions have seen a reduction in their annual road tax. Vehicle registration tax will also be lower, depending on the emissions rating of the car. The new system, where cars are classed in a series of CO2 emissions bands, is progressive and welcome. We should be encouraging as many people as possible to move to fuel-efficient cars. If the environmental benefits of the changes in VRT and motor tax are to be truly maximised, a real collective effort is required to educate everyone on the practical implications of the change.

Yesterday the Government outlined its plans for 10% of the national road transport fleet to be powered by electricity by the year 2020 and this is to be welcomed. The size of the country suits electric vehicles and the country can become an effective test centre for the world's car manufacturers. A total of 200,000 electric vehicles could be on our roads in 12 years. This would be a ground-breaking development. Among the provisions will be a €1 million research and development fund, tax incentives for companies buying electric vehicles as well as assistance for individual buyers.

Transport emissions are Ireland's fastest growing greenhouse gas sector. Powering electric vehicles from renewable sources like wind turbines could significantly reverse this trend. The electric vehicles plan provides for tax incentives for businesses to purchase electric vehicles. Businesses can write off 100% of the cost of purchase against tax under the accelerated capital allowance scheme. The plan also provides for a €1 million project for Sustainable Energy Ireland to research, develop and demonstrate vehicles nationally. Assistance will be given to individuals purchasing electric vehicles with the publication of a buyer's guide and a cost of ownership calculator by Sustainable Energy Ireland. A national taskforce will be established to examine infrastructure options for the national roll-out of electric vehicles, including street charging.

We are serious about dealing with the issue of car emissions. The Minister expects considerable international investment to flow from this plan. It must be remembered that in 2008, €6 billion will have been sent out of the country to pay for fossil fuels. The electric car scheme would bring money back into the economy and fuel our transport fleet with Irish renewable electricity.

We all need to be increasingly aware of the environment. Any measures that can help us to reduce our fossil fuel bill and to meet our climate change challenges are welcome. This plan could bring much investment and jobs to Ireland, with the potential to make Ireland a centre for electric vehicles. In these changed economic times, such a development is welcome.

We must think of our future generations. As a rural Deputy, I am always struck by the number of cars used in Dublin city. We must do what we can to reduce our dependence on fossil fuels, improve our energy security and lower our transport emissions. The key to our transport future, as the Minister for Transport, Deputy Noel Dempsey, outlined yesterday, has to include smarter, more sustainable travel choices.

The ESB is fully on board with this initiative. With the development of carbon-neutral electricity, Ireland has the opportunity to engage fully with the process of moving to electric vehicles. I was glad to learn the ESB is working to facilitate the development of electric cars, realising it will be a critical component of the green economy. We need new thinking when it comes to the motor vehicle sector. With the increasing global use of cars, and with issues such as climate change uppermost in our minds, Bills such as this show initiative. We must continue to be progressive when it comes to the motor industry and do all we can to make it as energy efficient as possible.

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