Dáil debates

Tuesday, 7 December 2010

Financial Resolution No. 4: Excise (Vehicle Registration Tax)

 

7:00 am

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

On behalf of the Sinn Féin Deputies, I oppose outright the proposed increase in excise duties on petrol and automotive diesel. It is incredible that the Government has made this choice. There is no question that this is a further tax on work and business. When one considers that those fortunate enough to have work must travel ever greater distances to access their employment one realises the net impact of what is involved here. People no longer use their cars for social purposes. The bulk of car use is directly related to accessing employment or the furtherance of specific business pursuits. The level of car use for social activities and such like is limited.

The proposition will have a hugely detrimental impact in the Border counties where we already have evidence of retail petrol and diesel outlets closing or significantly curtailing their business throughput because of the exodus north of the Border across a variety of attractions. We are putting another nail in the coffin of business outlets throughout the Border region, from Donegal through Sligo, Leitrim, Cavan and Monaghan to Louth and for a significant distance beyond these counties. That is one of the most certain outworkings of what is proposed. The measure is anti-business and anti-employment and the Government has again made a very bad choice.

On the air travel tax, while the reduction from €10 to €3 is welcome, the abolition of the tax would have had a much more imaginative impact in terms of the tourism sector and tourism market overseas. For the sake of €3, the Government could have gone the whole hog and had a major impact on the consciousness of tourism providers and organisers globally in terms of Ireland as a more keen destination for tourist traffic. A golden opportunity was lost by applying the brake in reducing the tax from €10 to €3. The Government should have gone the whole way and abolished the tax. This would have given a valuable fillip to the tourism industry, one of the most important sectors in terms of having any prospect of rejuvenated economic activity over the short time ahead.

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