Joanna Tuffy (Dublin Mid West, Labour)

I wish to share time with Deputies Broughan and Ferris. The Minister referred to local government funding, saying that the sole reason for the increase in motor tax rates is to raise money for the local government fund. He refers to the fact that this is ring-fenced, a positive move initiated by Deputy Howlin when he was Minster for the Environment. The point made by Deputy Gallagher, that local authorities can have their own funding, is important. The Minister made the same point in his speech:

Changes to the way local government operates must be accompanied by measures that provide a greater link between local revenue raising and local expenditure. This is key to introducing greater local responsibility and accountability in decision making.

Deputy Gallagher was correct because there is a lack of a paper trail in respect of funding collected at local level that relates to the communities affected by the development. Holiday homes are built in Donegal and that is the source of the money but Donegal must cope with the services that are needed by the holiday homes. It makes sense that the local authority can collect the money and have access to the money it collects. When I heard the announcement in the budget I thought this was the idea. It is very unfair if the money is put into a general pot and divvied out between local authorities. I live in the area administered by South Dublin County Council. There are not many holiday homes there, if any. We might not benefit from that type of approach but an issue of fairness and logic arises, apart from anything else. I support the points made by Deputy Gallagher but it should have been possible for the local authorities to collect that €200 levy and use it for their own funding. If there are a certain number of holiday homes or second homes in an area, they should get the benefit of that because they must pay for the services and the other environmental issues that arise from such development.

The other point I want to make about local government funding is that there is a conflict in terms of the Minister's policy on this issue because on the one hand he is welcoming the fact that the increases in motor tax will raise some €40 million for the fund next year but, on the other, his stated policy is to reduce carbon emissions by getting cars off the road. The Minister is happy to operate in that grey area where he says one thing but is practical and does the other. He wants the funding from the motor tax and therefore he is happy to have extra cars on the road. That contradicts his policy on carbon emissions.

The Minister should make a decision in the Bill, and I have raised this issue previously, that from now on multiple passenger vehicles will be treated much more favourably under the motor tax scheme. There is a provision in the Schedule on the amount of tax payable in respect of vehicles constructed or adapted for the carriage of more than eight persons that are owned by youth or community organisations and used exclusively by those organisations. Another one refers to vehicles that can take more than eight persons but not more than 20. There is a provision in respect of large public service vehicles, within the meaning of the Act, that are used for the carriage of children or children and teachers being carried to or from school or to school-related physical activities.

I would have thought that if the Government is serious about reducing transport emissions and promoting sustainable transport, the Minister should introduce incentivising measures. He is incentivising in terms of the mythical world of electric cars but that is probably a long way into the future; his ministerial colleague, Deputy Eamon Ryan, talked about 2020. He should do something now about incentivising measures covering multi-passenger vehicles, particularly if they are used by youth or community organisations and buses used to bring teachers and children to school. If the Minister is genuine about reducing carbon emissions from transport, that is something he should change.

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