Dessie Ellis (Dublin North West, Sinn Fein) | Oireachtas source

No system is perfect and errors can happen at any point. It would be preferable if people could have their new tax discs ready to go as soon as the old ones expire but this is not always so easy for people. The one-month grace period offers nothing more than a little space to deal with the process. Most people who use the month's grace renew their tax; they do not declare any period of non-use and they pay their way just like everybody else. In my view, keeping the month's grace and introducing the other measures will make a crackdown on motor tax evasion much easier for gardaí, who will be able to focus on those who are unquestionably avoiding tax. The month's grace and tax evasion are two completely different issues.

There is also the issue of a charge being applied for declaring that a vehicle is off the road. Surely if road tax has been paid for the vehicle in the past then that road tax should easily cover the cost of declaring the vehicle off the road. Is it right to charge someone for making a declaration that he or she is not liable for tax? Many people in rented houses across the State who buy stamps and envelopes in order to inform their local authorities that they are not liable for the home tax might be surprised if the Government took that attitude. It is disappointing that the Government believes it can sneak in the charge by not putting it in place until after the initial stages of reform. This is underhanded and very disrespectful of the people who have a right to be angry at this proposed charge. The Government needs to spend less time dreaming up hoodwink tactics.

I welcome the move to ring-fence motor tax money for the local government fund. The Finance Bill set aside €150 million of motor tax revenue for debt payment. This goes back to my earlier point about public confidence in the value for money of tax payments. That is not the purpose of the local government fund. I condemn this practice. I call on the Minister to ensure that motor tax moneys will remain in the fund. It should not be used to pay off the troika, the European banks or bondholders.

The other issue is that of consistency. I welcome the notion that money raised from the new offences of motor tax evasion will be ring-fenced for the fund. That is a good move. Sinn Féin proposed something similar - that money collected by the CAB should be used to help fund local drugs task forces and other community responses. This proposal was rejected because the funding was not sustainable. That was true, but it was not a legitimate reason for rejecting the plan. The money raised from these offences is also unsustainable, as the hope is that new regulations will sufficiently deter evasion and fines will become less common. That was not a sufficient excuse to block Sinn Féin's proposal on the CAB. I am pleased that at least the Government sees our point in this regard.

The most important point is that much of this will have no significant impact if not properly resourced. The Garda Síochána has been cut, left, right and centre. Garda stations have been closed and station opening hours have been cut across the State. The Garda Síochána is stretched thin and the force is being asked to do more and more. Some provisions in the Bill will aid the more important work of the Garda Síochána but such hard work and dedication requires the Garda Síochána to be adequately funded and staffed.

I note that the number of people declaring cars to be off the road has increased by 40% since 2008. That figure relates to the period before the more recent rises in motor tax. The last budget saw an increase of 25% while a recent study by the AA found 60% of motorists struggling to keep cars on the road. If maintaining a car becomes more and more expensive, tax evasion will likely increase. A balance must be struck between raising revenue and keeping people on the road.

I question the benefit of making the Minister a licensing authority and I ask the Minister of State to explain the purpose of this provision. In my view, officials should be above reproach. This could be used by people as a means to approach or to influence the Minister. I reiterate my point about the RSA taking over licensing responsibilities from the local authorities. The local authority licensing system has been in place for years. It is a bad move to take powers away from local authorities. I know this has already been enacted but I really believe it has been a mistake.

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