John Gormley (Dublin South East, Green Party)

The Deputy is right to point this out. A total of 85% of new vehicles purchased this year are in the low-CO2 category, which shows the success of that scheme and that it is having the desired effect. However, there has been a reduction in new car sales this year. Two thirds of the money going to local government comes from motor taxation, while one third comes from the Exchequer. My officials are investigating this. They are aware there is a shortfall due to the reduction in car sales and we are mindful that local government funding will be reduced as a result. That is simply a fact of life and we will have to consider alternatives. The way we fund local government, by relying on motor tax, is not sustainable either environmentally or economically. We must consider more sustainable forms of revenue, including the possibility of moving away from reliance on motor taxes and commercial rates. Instead we must consider possibilities such as those mentioned, including a tax on second properties. This should prove to be an enormous success and will, I hope, be the beginning of a new way of funding local government.

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