Willie Penrose (Longford-Westmeath, Labour)

I thank Deputy Maloney, who certainly holds these views strongly. As the Deputy has outlined, a pay-as-you-go system would have some potential benefits. However, the Deputy also will recognise there are many actual and potential down sides. There is a danger of significant economic dislocation and loss of competitiveness and there also would be a clear winners and losers on foot of the switch proposed by the Deputy. As a further example to those which were listed in my initial reply, many rural commuters must travel long distances to work and they would be likely losers compared with urban dwellers with shorter commutes. If the switch was to be made on a revenue-neutral basis, it is far from clear where any financial assistance to compensate those people for their losses could come from in the current budgetary circumstances. Everything must be weighed in the balance.

I note the proposed motor tax Bill will consolidate and modernise motor tax law in general and will reform the administration of the motor tax system to ensure consistency, resource efficiency and best customer practice in service delivery and all Members wish to subscribe to that. For example, it will address the abuse of high levels of off-the-road declarations being made, which results in substantial ongoing losses of revenue. Moreover, significant and necessary improvements to the motor taxation system and its administration are contemplated. However, at this point, for the reasons outlined earlier and notwithstanding the taking into account of the Deputy's submissions, I do not envisage its replacement in the manner suggested by Deputy Maloney.

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