Dáil debates

Wednesday, 24 April 2013

Non-Use of Motor Vehicles Bill 2013: Second Stage

 

4:10 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

Fianna Fáil supports this Bill but, obviously, we have concerns about some aspects of it. The move towards an advance declaration will reduce the scope for tax evasion but must be properly enforced in order to be effective and have a positive impact on State revenues. Car owners, we believe, should not be unfairly charged for making an off-road declaration given they will not be using the roads with that vehicle. We would ask that consideration be given to this. I understand the legislation proposes not to charge for that initially but, over time, this might happen. If possible, I ask that it be taken out completely. No more than with any other legislation, it can be reviewed on an ongoing basis. Contrary to what I heard said in the media some weeks ago about sunset clauses and so forth, as legislators we are reviewing legislation on a daily basis, reforming bad legislation and bringing forward good legislation with the support of the majority in the House.

While efficiencies are welcome, the Government's transfer of the driver licence issuance to the RSA away from local authorities is, I am afraid, symptomatic of a broader agenda by Government to emasculate local government and strip it of its powers. Limiting the potential for motor tax evasion can bolster the State coffers. Motor tax raised €992 million for the local government fund in 2011 and this had declined from €1.045 billion, or by 5%, since 2009. In 2010, the Local Government Efficiency Review Group recommended that this off-the-road system be reformed. It stated that the cost of the system was €75 million per annum and the group believed it was open to some abuse. The last specific roadside survey of the extent of the problem was held in 2001, and this too found a 5% non-compliance rate. More recent figures based on vehicles passing through the M50 toll for 2010 and 2011 showed that approximately 7% did not have up-to-date discs. The evasion rate, therefore, seems to be about 5% to 7%, so there is potential to make savings in that regard.

We expect the Bill will have a positive environmental impact. Owners may now be more likely to go to legitimate waste operators when scrapping cars in order to obtain a certificate of destruction as, without this, owners may be liable for the off-the-road declaration fee indefinitely. However, the Minister of State on behalf of the Government must clarify what happens to those cars already disposed of which did not receive such certification.

Even if the issue of the current approach to off-the-road declarations is addressed by way of this legislation, prevention of continuing abuse is dependent on sufficient enforcement by the Garda. Industrial disputes with members of the GRA may undermine the impact of legislation like this Bill. The decision, for example, of GRA members to exercise their discretion and not issue fines for revenue-generating offences, including motor tax offences, undermines the capacity of the Bill to raise revenue.

Let us make no mistake about it. This is one of the consequences of the dangerous, adversarial and contemptuous approach taken by the Minister for Justice and Equality towards An Garda Siochána. In light of these issues, it has been suggested that consideration could be given to creating a similar system to that used for speed-checking cameras whereby the detection of motor tax evasion could be contracted out to a private firm. Alternatively, given that many of the country's tolls record the registration number of vehicles passing through them, it might be possible to use this information with appropriate legislative foundation.

Enforcement brought forward by legislation is the key to the successful implementation of this Bill. The prospect of charging for off-the-road certificates has been raised. It will be not included in the initial years, as was said earlier. It would be deeply unfair for drivers to be charged for non-operative vehicles that are not used on the roads. I ask the Minister to remove that from the proposals before the House.

The Bill also provides for transitional financial arrangements following the transfer of the driving licence function from licensing in local authorities to the Road Safety Authority, RSA. We know the RSA took over responsibility from local authorities in January 2013 following the introduction of the new plastic card driving licence. Pending finalisation of the transfer process, there is a transition process during which local authorities will continue to provide certain driving licence services. While my party supports the EU directive which standardises driving licences across the Continent for obvious conformity and security benefits, the removal of the role of local authorities reflects the broader emasculation of local government. We have seen in recent times the difficulties faced in SUSI with regard to third-level grants and the centralisation of the medical card function and now the prospect of the driving licence generates the same fears and anxieties in many people throughout the country and those of us who receive representations in that regard.

An example of the losses that may emanate can be found in Cork County Council which offered an on-the-spot licence renewal system that will be now be lost with centralisation. It is important that we recognise the benefits that local flexibility can bring and not opt for knee-jerk centralisation. As I contemplate my reaction to this Bill and that specific area, I am conscious of the many forms of value for money audits that are taking place and the effort to rectify the financial situation involving looking microscopically at every facility and service. It might do much with regard to a balance sheet but it has not enhanced our society and rural sustainability. I am conscious of the loss of Garda stations in my own constituency in places like Ballinahown, Shannonbridge and Geashill and the potential loss of rural schools because the Minister has confirmed that the value-for-money audit in which his Department is engaged recommends four as the optimum number of teachers per school. No decision has been made in that regard but it is being brought to Cabinet and I would expect the Minister of State and his colleagues to win the day and not allow that policy to become a reality. There are 13 such schools in my constituency and county of Offaly that need the clarification required to allow them to continue to play the role they have played in times past. We have seen the reduction in social welfare hours and closures of social welfare offices and facilities.

Comments

No comments

Log in or join to post a public comment.