Catherine Murphy (Kildare North, Independent) | Oireachtas source

This Bill is about charging more and delivering less, the hallmark of this Government. The cost of going to work, leisure or school, particularly for those in rural areas without access to public transport, has reached a stage where people cannot afford to travel. At the same time, public transport is being withdrawn. In my constituency, 30 people have contacted following the withdrawal of a school bus service. That will result in 20 parents having to drive their children to school.

The major increase in motor tax in the Bill is more of the same, taking money from people's pockets and causing the domestic economy to deflate even further. Last year, motor tax rates increased by as much as 40% in some cases and here we see further increases.

Originally motor tax was ring-fenced for the local government fund to provide services. Since its peak in 2009, the local government fund has fallen by €348 million, from €1 billion to €652 million and the Minister told us in his opening remarks that a further €150 million will be transferred back to the Exchequer this year. That leaves €500 million, the exact figure due to be taken in at best by the property tax. Local authorities have lost income from commercial rates, metered water, development contributions, planning fees and many other areas. Their incomes have fallen substantially but at the same time, motor tax costs have risen. Taking into account increases in lower emission bands last year, some categories saw increases of as much as 92%.

I debated the ring-fencing of the carbon tax fund with the Minister for Communications, Energy and Natural Resources. I was told that was never done and it was not possible. We both know that the local government fund was taken from a ring-fenced motor taxation fund. This is not about motor tax or carbon tax or property tax, it is general taxation under a different name. The property tax might be predominantly spent at local government level but there is no guarantee that it will all be spent at that level.

The Minister said in his opening contribution that there would be increases for the lower categories of up to 1,700 cc of between €14 and €38 per year. My car is smaller than that and I had an increase of €50 so I do not know where he is getting his figures from.

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