Dáil debates

Thursday, 19 January 2023

Saincheisteanna Tráthúla - Topical Issue Debate

Electric Vehicles

4:35 pm

Photo of Jennifer Murnane O'ConnorJennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

I too want to wish the Minister of State well in her new job. It is great to see her, I wish her well and I know she will do her best. I am delighted to be speaking to the Minister of State during her first Topical Issue and I know that she will sort it for me.

The most common benefit-in-kind tax is on a company car. Changes to tax came in this month and I have huge concerns about the increase in benefit-in-kind tax. It is being touted as a green initiative, but I have my doubts. This week I spoke with one of my constituents who is a sales representative for a Carlow business and who was on a 6% rate that increased to 12% in January. However, the annual mileage is also increasing by 4,000 km. That is hardly great for the environment and that is another issue that he felt strongly about. He spoke to his company about getting an electric vehicle, EV, but anything that would be close to suitable for doing the job costs approximately €80,000. Therefore, the original market value would increase the benefit-in-kind and that would cost the representative €1,610 net yearly during a time of huge inflation. He tells me this is just another bill that he cannot afford. He needs the vehicle to do his job. If this really was a green initiative, I wonder why we are seeking an increase in the mileage bracket and why electric cars are being dragged into it at all. Surely, we should be encouraging people to use electric cars.

While we are talking about electric cars, what is the status of the 2022 electric SPSV grant scheme, eSPSV22? It was paused for applications in April and was reopened in November. There was huge interest in it from taxi drivers and I spoke to many taxi drivers about it. Can the Minister of State tell me if this scheme is successful, given the high cost of electric cars? I have received many queries since then and many people are telling me that this will affect their jobs. It will particularly affect people who live in rural Ireland, such as in Carlow-Kilkenny, which is a rural constituency. In addition, considering the cost of living, every job is now crucial. This seems to have affected many more people than I had realised. I was not really aware of the scale of this scheme, but it is a huge scheme, and it has a huge effect on people. I ask that something is done and that we look at it. It needs to be addressed, considering that it is affecting so many people. Another man said to me, "I have a mortgage, I have small kids, my expenses are going up and up and at this rate with all of these extra taxes, I do not know how I am going to survive". I said that I would bring the issue before the Dáil as a Topical Issue. As this is the Minister of State’s first Topical Issue, I ask her to do the best she can.

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