Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

We are well aware that this was a temporary measure that has lasted in our tax code for a period of 25 years. Anyone from the industry would be forgiven for thinking that it was always renewed, always in place and permanent.

One of the main issues I see is the sudden shock to the industry and the way the industry operates. I was rather impressed to see the size and scale of the sector and the number of cars leased when we were provided with documentation on the matter.

Several important factors are relevant. There was no consultation whatsoever with the industry. There was no economic impact study carried out before the change took place. Arguments have been put forward to the effect that there is a lack of understanding of the consequences that this could have given the sudden introduction of the measure. It is important that there should be consultation, that this should be delayed, and that we look at the impact of it.

Deputy McGrath referred to the range of time in which this cost could be absorbed. The details have been presented to me as well. Reference was made to a period of three to four months. Arguments have been put forward by the Minister that mitigation is provided by section 39, but that does not really apply in the case of Ireland given that we have right-hand steering wheel vehicles. Only two other European jurisdictions have the same type of vehicles and one of them is about to leave the European Union. Thus the question of mitigation does not really arise. I would encourage the Minister to rethink the timing of the proposal to carry out consultation with the industry. I am not suggesting the Minister must accept the view of those in the industry, but it is important to consult and look at the economic impact. Like many other Deputies I have been written to and contacted on this issue, including from representatives of the airport in Carrickfinn, which is an important economic enabler in our area. They have outlined the potential harm this could cause given the abruptness, short notice, how this is being brought in and how it impacts on plans already afoot.

See this speech in context