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

We recognise that the primary purpose of this Bill is to provide a legislative basis for the reductions in motor tax for heavier goods vehicles, as announced in the budget, which are to take effect from 1 January next. We welcome the decision to decrease the amount of commercial tax paid by hauliers. For a number of years now, road tax for large goods vehicles in Ireland has been too high. It is grossly uncompetitive by comparison with the regime that has applied in Northern Ireland and the rest of the UK since April 2014. It has been causing distortions in the haulage industry and increasing costs across the Irish economy. Members of Fianna Fáil have called on the Minister to address the uncompetitive environment for Irish hauliers.

We note the secondary function of the Bill, which arises from the need for legislative changes on foot of a decision issued by the Court of Appeal in October. The court ruled that a truck's trailer is not a separate taxable unit. We welcome this legislative change, which gives greater precision to the definition of a "truck-trailer". In light of the mistake that was identified by the court ruling, and given that hauliers will experience heavy reductions in their commercial motor tax from 2016, we believe it is appropriate for the Minister to inform tax offices of the Court of Appeal ruling and ensure lower rates are charged for all tax renewals until 1 January next.

We note also that it was said during the course of the budget debate that the measures being introduced in relation to commercial motor tax are temporary ones. That being the case, we would like to know when the Minister anticipates that this regime will eventually be replaced. Is it to be replaced by a regime similar to that in the UK, which is based on the gross design vehicle weight of the vehicle being taxed? What is to be the framework for the new tax regime? I would appreciate it if the Minister would give the House, and by extension the industry, an indication of where he stands on that matter at as early a stage as possible.

It is appropriate to avail of the opportunity presented to us to discuss the whole haulage business during this Second Stage debate by talking about the proposal to impose a tyre tax. As the Minister of State knows, this is a major issue for the haulage and farming sectors.

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