Phil Hogan (Carlow-Kilkenny, Fine Gael)

I thank the Deputy for raising this important matter. I am very concerned at the high level of off-the-road declarations being made. I am aware that current procedures governing the making of such declarations may be open to abuse.

Off-the-road declarations are made retrospectively to cover short periods, usually of a month, where motor tax was unpaid as the vehicle to which the declaration applies was not in use in a public place during the period to which the declaration refers. The current system allows for such a declaration to be witnessed by a member of the Garda Síochána. This was intended to discourage false declarations. However, it may be considered to be ineffective as the garda may be witnessing the signature on the declaration only and may not be in a position to verify whether the vehicle was in use on the road for the period in question. It could thus be argued that this process, designed to facilitate genuine cases where vehicles are not in use on a public road, is capable of being used to evade the payment of motor tax for short periods by making false declarations in instances where vehicles may have been used in a public place during the period of the declaration.

It is my strong view that this practice is exacerbated by the custom and practice of allowing a month's grace for the payment of motor tax. While this is not laid down in law, the approach has arisen from the period when renewing tax discs could be slow and time-consuming. This is no longer the case since the introduction of the online motor tax system. However, the common perception that this one month grace period exists probably feeds into the notion that driving without valid motor tax for short periods is acceptable.

The most recent verified figures available indicate that the value of off-the-road declarations made during the 15 months from May 2009 to July 2010, inclusive, was over €94 million. I have asked my Department, in the context of a general revision of motor tax law, to take steps this year to address the procedures in this area. While acknowledging that it will not be possible to remove off-the-road declarations completely, a system somewhat akin to that in use in the UK is being considered in the context of the development of a motor tax Bill, whereby off-the-road declarations will be possible only in advance for a specified period of no less than three months. It will not be possible for retrospective applications to be made, as these are in essence unlikely to be fully verifiable. I also propose to confirm the non-existence in law of the month's grace period to renew motor tax.

More generally, the motor tax Bill will consolidate and modernise motor tax law, and reform the administration of the motor tax system to ensure consistency, resource efficiency and best customer practice in service delivery.

See this speech in context