Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

On behalf of the Minister, Deputy Gormley, I thank all Deputies who contributed to this debate and I appreciate the indications of support for the Bill. The Minister in his introductory remarks made clear that the sole reason for increasing motor tax rates was to fund local government. He also pointed out that motor tax increases since the year 2000, including the current increases, are below the inflation rate over the intervening eight-year period. The extra cost for 94% of the car fleet, that is, those under two litres, will be between 13 cent and 46 cent a week.

Deputies are aware that all motor tax receipts go into the local government fund and they know the significant role it plays in financing local government. Increasing any tax is of course not popular, and in making this decision the primary consideration was the need to provide adequate funding for local government while not over-burdening people at a time of economic difficulty.

I welcome the emphasis in the debate on the importance of tackling climate change. The introduction of emissions-based car taxation has already been shown to work effectively in the early days in reducing car emissions. However, this is only one aspect of a much broader climate change strategy which involves a large number of measures across the economy. We saw yesterday the announcement of new incentives to encourage the use of electric cars and the Government will also be publishing shortly a new strategy on sustainable transport.

A number of speakers regretted that the new CO2 system did not retrospectively apply to the whole fleet, or alternatively, that it did not apply back to 2004. While I understand the reasons behind these views it would have been difficult to introduce a tax retrospectively in a way which did not seriously undermine local government funds.

Deputy Ciarán Lynch asked whether the new system for revenue raising is an environmental incentive. He made the point that the success of the scheme will put pressure on revenue receipts. He is correct in this regard but from the earliest days the Minister made it clear that the new system has a dual focus and it must be kept under review to ensure it meets these aims.

Equally, it will be important to examine other sources of local government finance and this is why the Government introduced the new proposal to levy non-principal private residences which was referred to by a number of speakers. This novel levy is designed to broaden the income source for local government. The details of how this levy will operate are being considered within the Department and an opportunity to debate the proposal will arise when the necessary legislation comes before the House. In the meantime, the views expressed in the House will be taken into account in designing the scheme. It is intended the moneys raised will be returned in total to local authorities.

Deputy Crawford mentioned recycling of water and collecting rainwater from roofs. This is a matter for individuals and is a laudable approach to the water problems which exist nationally and internationally. He also raised the matter of the Dublin to Derry dual carriageway which is a matter for the Department of Transport and will be referred to it. Deputy Crawford also mentioned meat and bone meal. We have a proposal regarding ESB lines crossing County Meath and some of the objections to it are fuelled by Deputy Crawford's party.

See this speech in context