Enda Kenny (Mayo, Fine Gael)

I move:

(1)THAT in this Resolution –

(1)THAT in this Resolution –

"Act of 1952" means the Finance (Excise Duties)(Vehicles) Act 1952

(No. 24 of 1952);

"Act of 1992" means the Finance (No. 2) Act 1992 (No. 28 of 1992);

"Act of 2008" means the Motor Vehicle (Duties and Licences )(No. 2) Act 2008

(No. 24 of 2008).

(2)THAT as respects licences under section 1 of the Act of 1952 taken out for periods beginning on or after 1 January 2012, the Schedule (as amended by section 3 of, and the Schedule to, the Act of 2008) to the Act of 1952 be amended by substituting the following for Part I of that Schedule:

(2)THAT as respects licences under section 1 of the Act of 1952 taken out for periods beginning on or after 1 January 2012, the Schedule (as amended by section 3 of, and the Schedule to, the Act of 2008) to the Act of 1952 be amended by substituting the following for Part I of that Schedule:

"PART I
1. Vehicles of the following descriptions not exceeding 500 kilograms in weight unladen:
(a) bicycles (other than bicycles which are electrically propelled), or tricycles (other than tricycles neither constructed nor adapted for use nor used for the carriage of a passenger), of which the cylinder capacity of the engine—
(i) does not exceed 75 cubic centimetres	€46
(ii) exceeds 75 cubic centimetres but does not exceed 200 cubic centimetres	€62
(iii) exceeds 200 cubic centimetres,	€82
(b) bicycles or tricycles which are electrically propelled,	€33
(c) vehicles with three or more wheels neither constructed nor adapted for use nor used for the carriage of a driver or passenger	€82.
2. (a) Vehicles (commonly known as dumpers) not exceeding 3 metres cubed in capacity, level loaded, designed and constructed for use on sites of construction works (including road construction and house and other building works) for the purpose of conveying concrete, rubble, earth or other like material where the person taking out the licence shows to the satisfaction of the licensing authority that the vehicle is used mainly on such sites, and on public roads only —
(i) for the purpose of proceeding to and from the site where it is to be used, and when so proceeding neither carries nor hauls any load other than such as is necessary for its propulsion or equipment, or
(ii) for the purpose of conveying concrete, rubble, earth or like material for a distance of not more than one kilometre to and from any such site,	€95
(b) Vehicles (commonly known as off-road dumpers) exceeding 3 metres cubed in capacity, level loaded, designed and constructed primarily for use on sites of construction works (including road construction and house and other building works) for the purpose of conveying concrete, rubble, earth or other like material and incapable by reason of their design and construction of exceeding a speed of 55 kilometres per hour on a level road under their own power and which are the subject of special permits under the Road Traffic (Special Permits for Particular Vehicles) Regulations 2007 (S.I. No. 283 of 2007),	€823
(c) Any vehicle (other than a vehicle constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement, by or in which goods being conveyed by such vehicle are processed or manufactured while the vehicle is in motion) constructed or adapted for use and used only for the conveyance of a machine, workshop, contrivance or implement (being a machine, workshop, contrivance or implement which is built in as part of the vehicle or otherwise permanently attached thereto) and no other load except articles used in connection with such machine, workshop, contrivance or implement or goods processed or manufactured therein including any vehicle (commonly known as a recovery vehicle) constructed or permanently adapted for the purposes of lifting, towing and transporting a disabled vehicle or for any one or more of those purposes,	€310
(d) Vehicles (commonly known as forklift trucks) designed and constructed for the purpose of loading and unloading goods where the person taking out the licence shows to the satisfaction of the licensing authority that the vehicle is used on public roads only—
(i) for the purpose of proceeding to and from the site where it is to be used for loading and unloading, and when so proceeding neither carries nor hauls any load other than such as is necessary for its propulsion or equipment, or
(ii) as part of the process of loading or unloading, for the purpose of conveying goods for a distance of not more than one kilometre to and from the site where it is loading or unloading	€95.
3. (a) Vehicles constructed or adapted for the carriage of more than 8 persons which are owned by a youth or community organisation and which are used exclusively by the organisation solely for the purpose of conveying persons on journeys directly related to the activities of the organisation and which have seating capacity for—
(i) more than 8 persons but not more than 20 persons	€143
(ii) more than 20 persons but not more than 40 persons	€188
(iii) more than 40 persons but not more than 60 persons	€375
(iv) more than 60 persons,	€375
(b)Vehicles (other than those referred to in subparagraph (c) of this paragraph) used as large public service vehicles within the meaning of the Road Traffic Act 1961, and having seating capacity for—
(i) more than 8 persons but not more than 20 persons	€143
(ii) more than 20 persons but not more than 40 persons	€188
(iii) more than 40 persons but not more than 60 persons	€375
(iv) more than 60 persons,	€375
(c) Vehicles which are large public service vehicles within the meaning of the Road Traffic Act 1961, and which are used only for the carriage of children, or children and teachers, being carried to or from school or to or from school-related physical education activities, and are either licensed under Article 60 of the Road Traffic (Public Service Vehicles) Regulations 1963 (S.I. No. 191 of 1963) as amended, or owned or operated by a statutory transport undertaking	€88.
4. Vehicles of the following descriptions:
(a) vehicles designed, constructed and used for the purpose of trench digging or any kind of excavating or shovelling work which—
(i) are used on public roads only for that purpose or the purpose of proceeding to and from the place where they are to be used for that purpose, and
(ii) when so proceeding neither carry nor haul any load other than such as is necessary for their propulsion or equipment,	€95
(b) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 50 kilometres per hour on a level road under their own power) and agricultural engines, not being tractors or engines used for hauling on roads any objects except their own necessary gear, threshing appliances, farming implements or supplies of fuel or water required for the purposes of the vehicles or agricultural purposes,	€95
(c) tractors (being tractors designed and constructed primarily for use otherwise than on roads and incapable by reason of their construction of exceeding a speed of 50 kilometres per hour on a level road under their own power and not being tractors in respect of which a duty is chargeable at the rate specified in subparagraph (b) of this paragraph) which are used for haulage in connection with agriculture and for no other purpose,	€95
where a tractor is fitted with a detachable platform, container or implement (being a platform, container or implement used primarily for farm work), goods or burden of any other description conveyed on or in the platform, container or implement shall be regarded for the purposes of this subparagraph as being hauled by the tractor,
(d) tractors of any other description,	€310
(e) vehicles designed, constructed or adapted as motor caravans (within the meaning of section 130 of the Finance Act 1992),	€95
(f) vehicles which are kept and used exclusively on an offshore island to which there is no direct road or bridge access from the mainland	€95
5. Vehicles (including tricycles weighing more than 500 kilograms unladen) constructed or adapted for use and used for the conveyance of goods or burden of any other description in the course of trade or business (including agriculture and the performance by a local or public authority of its functions) and vehicles constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement by or in which goods being conveyed by such vehicles are processed or manufactured while the vehicles are in motion:
(a) being vehicles which are electrically propelled and which do not exceed 1,500 kilograms in weight unladen,	€86
(b) being vehicles which are not such electrically propelled vehicles as aforesaid and which have a weight unladen—
(i) not exceeding 3,000 kilograms,	€310
(ii) exceeding 3,000 kilograms but not exceeding 4,000 kilograms,	€391
(iii) exceeding 4,000 kilograms but not exceeding 5,000 kilograms,	€505
(iv) exceeding 5,000 kilograms but not exceeding 6,000 kilograms,	€700
(v) exceeding 6,000 kilograms but not exceeding 7,000 kilograms,	€948
(vi) exceeding 7,000 kilograms but not exceeding 8,000 kilograms,	€1,193
(vii) exceeding 8,000 kilograms but not exceeding 20,000 kilograms,	€1,193 plus €281 for each 1,000 kilograms or part thereof in excess of 8,000 kilograms
(viii) exceeding 20,000 kilograms	€4,833.
6. Vehicles other than those charged with duty under the foregoing provisions of this Part of this Schedule:
(a)any vehicle which is used as a hearse and for no other purpose,	€95
(b) any vehicle (excluding a taxi) which is used as a small public service vehicle within the meaning of the Road Traffic Act 1961, and for no other purpose,	€88
(c) any vehicle which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the Road Traffic Act 1961, and for purposes incidental to such use and for no other purpose,	€88
(d) any vehicle which is—
(i) a new vehicle which is registered on or after 1 July 2008 under section 131 of the Finance Act 1992 as a category A vehicle or a category M1 vehicle, as the case may be, or
(ii) registered outside of the State on or after 1 January 2008 and which is subsequently registered in the State on or after 1 July 2008 under section 131 of the Finance Act 1992 as a category A vehicle or a category M1 vehicle, as the case may be, and which has an identification mark assigned by the Revenue Commissioners under section 131(5) of the Finance Act 1992 which signifies that the vehicle was first brought into use during or after the year 2008, and which has a CO2 emissions level-
(I) not exceeding 120 grams per kilometre,	€160
(II) exceeding 120 grams per kilometre but not exceeding 140 grams per kilometre,	€225
(III) exceeding 140 grams per kilometre but not exceeding 155 grams per kilometre,	€330
(IV) exceeding 155 grams per kilometre but not exceeding 170 grams per kilometre,	€481
(V) exceeding 170 grams per kilometre but not exceeding 190 grams per kilometre,	€677
(VI) exceeding 190 grams per kilometre but not exceeding 225 grams per kilometre,	€1,129
(VII) exceeding 225 grams per kilometre,	€2,258
(VIII) that—
(A) cannot be confirmed by the Revenue Commissioners by reference to the relevant EC type-approval certificate or EC certificate of conformity, and
(B) the Revenue Commissioners are not satisfied of by reference to any other document produced in support of the declaration for registration pursuant to section 131 of the Finance Act 1992,	€2,258
(e) subject to subparagraph (f), other vehicles to which this paragraph applies and which—
(i) have an engine capacity not exceeding 1,000 cubic centimetres,	€185
(ii) have an engine capacity exceeding 1,000 cubic centimetres but not exceeding 1,100 cubic centimetres,	€278
(iii) have an engine capacity exceeding 1,100 cubic centimetres but not exceeding 1,200 cubic centimetres,	€307
(iv) have an engine capacity exceeding 1,200 cubic centimetres but not exceeding 1,300 cubic centimetres,	€333
(v) have an engine capacity exceeding 1,300 cubic centimetres but not exceeding 1,400 cubic centimetres,	€358
(vi) have an engine capacityexceeding 1,400 cubic centimetres but not exceeding 1,500 cubic centimetres,	€384
(vii) have an engine capacity exceeding 1,500 cubic centimetres but not exceeding 1,600 cubic centimetres,	€478
(viii) have an engine capacity exceeding 1,600 cubic centimetres but not exceeding 1,700 cubic centimetres,	€506
(ix) have an engine capacity exceeding 1,700 cubic centimetres but not exceeding 1,800 cubic centimetres,	€592
(x) have an engine capacity exceeding 1,800 cubic centimetres but not exceeding 1,900 cubic centimetres,	€626
(xi) have an engine capacity exceeding 1,900 cubic centimetres but not exceeding 2,000 cubic centimetres,	€660
(xii) have an engine capacity exceeding 2,000 cubic centimetres but not exceeding 2,100 cubic centimetres,	€843
(xiii) have an engine capacity exceeding 2,100 cubic centimetres but not exceeding 2,200 cubic centimetres,	€885
(xiv) have an engine capacity exceeding 2,200 cubic centimetres but not exceeding 2,300 cubic centimetres,	€925
(xv) have an engine capacity exceeding 2,300 cubic centimetres but not exceeding 2,400 cubic centimetres,	€962
(xvi) have an engine capacity exceeding 2,400 cubic centimetres but not exceeding 2,500 cubic centimetres,	€1,005
(xvii) have an engine capacity exceeding 2,500 cubic centimetres but not exceeding 2,600 cubic centimetres,	€1,204
(xviii) have an engine capacity exceeding 2,600 cubic centimetres but not exceeding 2,700 cubic centimetres,	€1,251
(xix) have an engine capacity exceeding 2,700 cubic centimetres but not exceeding 2,800 cubic centimetres,	€1,294
(xx) have an engine capacity exceeding 2,800 cubic centimetres but not exceeding 2,900 cubic centimetres,	€1,342
(xxi) have an engine capacity exceeding 2,900 cubic centimetres but not exceeding 3,000 cubic centimetres,	€1,390
(xxii) have an engine capacity exceeding 3,000 cubic centimetres,	€1,683
(xxiii) is electrically propelled,	€157
(f) where a vehicle mentioned in subparagraph (e) which at the time of registration—
(i) was a new vehicle registered under section 131 of the Finance Act 1992 as a category A vehicle during the period beginning on 1 January 2008 and ending on 30 June 2008, and
(ii) in respect of which the rate of duty that would have applied to it under subparagraph (d)(i), if that subparagraph had been in operation when it was so registered and had applied to it, is less that the rate of duty specified in relation to it in subparagraph (e), then, the rate of duty as respects that vehicle for licences taken out on or after 1 July 2008 for periods beginning on or after that date shall be the rate of duty specified in subparagraph (d),
(g) where a vehicle was registered outside of the State during the period beginning on 1 January 2008 and ending on 30 June 2008 and is subsequently registered in the State on or after 1 January 2008 under section 131of the Finance Act 1992 as a category A vehicle or a category M1 vehicle, as the case may be, and which has an identification mark assigned by the Revenue Commissioners under section 131(5) of the Finance Act 1992 which signifies that the vehicle was first brought into use during the year 2008, then, notwithstanding any other provision of this paragraph, the rate of duty as respects that vehicle for licences taken out on or after 1 July 2008 for periods beginning on or after that date shall be chargeable at the lower of the rates of duty for the vehicle under subparagraph (d) or (e).".

(3) THAT as respects licences under section 1 of the Act of 1952 taken out for periods beginning on or after the 1 January 2012, the Schedule to that Act be amended by substituting the following for paragraph 5 of Part II (as amended by section 4 of the Act of 2008) of that Schedule :

"5. Where the applicant for a licence under section 1 of this Act satisfies the licensing authority that the vehicle in respect of which the licence is sought was constructed more than 30 years prior to the commencement of the period in respect of which the licence is sought, the annual rate of duty shall, notwithstanding Part I of this Schedule, be –

(i) €24 where, apart from this paragraph, paragraph 1 of Part I of this Schedule would apply to the vehicle, and

(ii) €52 in respect of any other vehicle.".

(4) THAT as respects licences under section 21 (as amended by section 5 of the Act of 2008) of the Act of 1992 taken out for periods beginning on or after the 1 January 2012, subsection (3) of that section be amended by substituting the following for that subsection:

"(3)(a) There shall be charged, levied and paid on a trade licence a duty of excise of-

(i) in the case of a licence for exhibition only on a motor-cycle, €55,

(ii) in the case of a licence for exhibition only on any other vehicle, €328.

(b) There shall be charged, levied and paid on a trade licence issued in place of a trade licence that has been lost, stolen or destroyed a duty of excise of-

(i) in the case of a licence for exhibition only on a motor-cycle, €35,

(ii) in the case of a licence for exhibition only on any other vehicle, €80.".

(5) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

This resolution provides for the amendment of the Finance (Excise Duties) (Vehicles) Act 1952 and the Finance (No. 2) Act 1992, as extended by the Motor Vehicle (Duties and Licences) Acts 2008 in relation to rates of motor tax and fees for trade licence plates. I draw the attention of the House to a typographical error on page 4, section (3)(b)(iii) which should read "more" rather than "ntmore".

The proposed increases announced today, the first in three years, are for 7.5% across most categories of vehicle. In the case of CO2 bands A-C flat rate increases apply. Band A increases from €104 to €160, band B from €156 to €225 and band C from €302 to €330. Trade plate licences will also increase by 7.5%. The new rates will apply to motor tax discs and trade licences taken out from tonight for periods beginning on or after 1 January 2012. The levels of increase in the lower CO2 bands are higher in percentage terms than the rest of the fleet, but must be viewed against a structure that left the bottom rates very low. It is also important to note that the structure of the banding and rates have not been changed and there remains a positive incentive to purchase low-CO2 cars.

While the introduction of the CO2 bands was designed to encourage a switch to lower emission vehicles, the changes were introduced on a second principle of revenue neutrality. It has always been the intention that the motor taxation system be kept under review to ensure that it meets the twin objectives of the CO2 system. The reality is that there has been a significant loss of motor tax income in recent years, as the number of vehicles taxed on the basis of CO2 emissions has increased by about 5% year on year. At the end of October, the CO2 fleet of 333,634 cars comprised 17.6% of all cars on the road. Of these, more than 294,000 are taxed at the three lowest bands. While this is welcome from an environmental perspective, it represented an increasing loss to the local government fund, receipts having been reduced from €1,060 million in 2008 to €1,024 million last year. It is estimated that income for this year would be in the region of €998 million if no increases in rates were applied.

It is important to note that the proceeds from motor tax have hitherto paid into the local government fund to support the funding of local authorities. The fund is used predominately to finance non-national roads and the general purpose needs of local authorities. However, in this instance, the increase in income from the proposed rate increases will go directly to the Exchequer. This is an immediate and necessary measure towards the reduction of the national debt. I should stress that the local government fund will retain the income from the existing rates of motor tax. The Government is committed to supporting the local government fund and it is proposed that the income from the introduction of the household charge will be directed to the fund.

It is anticipated that the proposed increases will raise some €47 million for the Exchequer over a full year. Any broader or longer-term changes to the motor taxation system will be considered as part of the review of the carbon banding of VRT and motor tax that will commence next year. It is my intention that the twin priorities of ensuring the protection of the tax base and the positive environmental impact of the existing basis of taxation will be carried through to the future.

This Financial Resolution will cease on the enactment of the relevant Bill, which will be presented to the House at the earliest possible date.

See this speech in context