Dáil debates

Wednesday, 25 November 2015

Motor Vehicles (Duties and Licences) Bill 2015: Second and Subsequent Stages

 

5:15 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent) | Oireachtas source

It will be very difficult to follow Deputy Mattie McGrath. I am grateful for the opportunity to speak on the Motor Vehicles (Duties and Licences) Bill 2015. I welcome the debate and I broadly welcome the legislation, as it deals with a grave injustice that was done to all those who work in the road haulage industry, a very important cog at the economic heart of this country. Before I go into the details of the legislation, I note that it is a positive and common-sense development, hence my support for the Bill. It fixes a problem that a lot of people agree must be fixed. We must be creative and radical when it comes to the economic development of this country. Jobs must be top of that agenda. The Bill makes a contribution to that aspect of economic recovery. Deputy Michael Fitzmaurice said to me before the debate "What do you know about lorries?". I note to Deputy Fitzmaurice that for eight years I worked as a helper on lorries for Coca-Cola, delivering Coca-Cola up and down the country in Dublin, Cork, Galway and Clare. I know a great deal about lorries and unloading them, shifting stuff at midnight and reloading at 7 a.m. It is a tough job and I know its ins and outs. I commend all those who work in the industry, because they are a very important aspect of our economy.

Ireland is an island country and we depend on exports. Road freight transport plays a very important role in the facilitation of growth in our economy. The quantity of goods transported increased by 3.4% to 112.5 million tonnes and the number of vehicle kilometres travelled by Irish-registered goods vehicles rose by 3.6% to 1.3 billion km. That is a huge movement of goods and a very important thing. The other aspect that is often forgotten about is the huge number of people that work in the industry. The Irish Road Haulage Association, or IRHA, estimates that road haulage employs an estimated 50,000 people, including those in ancillary jobs. That is some figure when one considers the economic aspects of the debate. The Irish road haulage industry is a large contributor to Exchequer finances. The IRHA estimates that it contributes over €1 billion to the general Exchequer each year via fuel duty, road tax, PAYE and PRSI. That is a major contribution to the economy. As such, it is only right that there is cross-party support for the legislation.

The IRHA says it is important that it its member organisations are supported so that they can get on with their jobs. The IRHA has spoken for many years of the disparities between the cost of operating a truck in the south as compared with the North of Ireland, Britain and numerous other EU countries. A 44-tonne articulated truck costs €4,000 to tax in the Republic of Ireland versus €650 North of the Border in Newry. These are the kinds of issues that we have to deal with. That is why it is important that the legislation deals with this issue. The IRHA has also stated that due to ever-increasing costs, Irish international operators are registering - or re-flagging, to use the relevant term - their commercial fleets in European countries where operating costs are far more favourable. For a number of years, the IRHA has been recommending an overhaul of the current Irish road tax regime to bring it into line with the model and costs in the North. That is important. The Bill deals with the deceases in motor tax for heavy goods vehicles announced in budget 2016. These will be implemented on 1 January 2016.

Motorists are often the forgotten people in Irish society. They make a massive contribution to the Exchequer through tax and duty payments. At times, they are not treated with respect. It is very important to acknowledge that in this debate. I welcome the Bill. It is a contribution and something sensible. I will be supporting it.

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