Kieran O'Donnell (Limerick East, Fine Gael)

I support this amendment although I was surprised that amendments Nos. 40 and 41 were not grouped. The whole issue of short-term car hire is very significant outside Dublin, especially in my area of the mid-west and Limerick because of people coming in through Shannon Airport.

I refer in particular to the scrappage scheme. The Minister is probably well aware that as it stands, the car fleet is of the order of 13,000, while the optimum level required is probably 26,000 or 27,000 cars. In Germany at present, the scrappage scheme applies to short-term fleet hire cars. I tabled a very straightforward amendment such that the scrappage scheme would apply to all normal category A cars or vehicles as well as 2010 registered vehicles that have been let on short-term hire for a maximum period of up to six months. This would allow car dealers to purchase a fleet of cars and let them out to those who wish to hire out cars and the cars would then be available for the summer season.

The Minister should recall there are six new hotels in the Limerick area. The owners of any bed and breakfast in the region will say foreign tourists invariably hire a car. There is a mobility factor at play. There is a concern in this regard because when people go on-line to book a holiday, one of the things they look to do is book a car for hire. If cars are not available, these people will simply decide to go to other countries because they decide on where to go only one week before travelling. They no longer book in advance. When a person seeks car hire it will, invariably, be done by one's partner or wife, but the person will look to where he or she can hire a car. If such a person cannot hire a car in Ireland they will not come here. What is required is a very simple mechanism to allow cars registered in 2010 to qualify.

The Minister should remember that for every car registered the Government will receive VRT; the Exchequer will get money. If a car is bought in, the Government will get VRT.

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