Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Several points need to be made. First, this was not a budget day measure. It was not announced on budget day. It was not contained in the budget day booklet or within the summary of taxation measures. Certain measures that brought in as little as €2 million were singled out in the budget day booklet summary of tax measures. The Minister says this measure will bring in €20 million but it did not warrant a mention. Presumably it was not in play at the time, but between budget day and the publication of the Finance Bill the issue emerged and was put forward in the Bill, as published. There was no consultation and the out-of-the-blue nature of this is what has caused so much concern.

The Minister needs to accept some facts and realities. This will make our tourism offering less competitive. It will increase costs in the car rental sector. This affects not only tourists but also other consumers. There will be an implication and a cost. There is a potential impact when Ireland is being compared with other jurisdictions and no one knows what that is, but it will be taken in addition to the impact of the increase in the lower VAT rate.

When it comes to the car leasing sector, which is an important area for small and medium-sized businesses and corporate bodies throughout the country, car leasing will now be placed at a relative disadvantage to hire purchase arrangements, which is another manner of providing vehicles, as well as personal contract plan arrangements or indeed the provision of vehicles through debt loans.

Car leasing will be placed at a relative disadvantage to hire purchase arrangements, another manner of providing vehicles, personal contract plan, PCP, arrangements, or the provision of vehicles through debt loans. There is a change within that stream of activity. Car leasing will become more expensive, with an average car costing around €700 more. The Minister of State has mentioned the figure of €20 million, but there is another side to the argument and it remains to be seen whether the €20 million will actually be collected. People deserve an explanation. From where did this measure come, given that it did not warrant a mention anywhere in the detail of the publications on budget day?

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