Fergus O'Dowd (Louth, Fine Gael)
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This is a very important matter and I thank the Office of the Ceann Comhairle for allowing me to debate it.

Last year it was estimated that one in ten motorists were guilty of motor tax evasion. That is many people and results in a lot of money being lost to the Exchequer. The Department estimates that outstanding motor tax in October of last year amounted to €40 million, which is a very significant sum. The Minister promised at the time that he would effect immediate and urgent anti-evasion measures, but we see no sign of these. In March 2005, in a debate in the Dáil, the Minister for Justice, Equality and Law Reform said he would push for the introduction of technology to detect motor tax dodgers automatically, but I see no sign of that either.

Let me outline some facts. The Garda's annual report for 2005 states proceedings were commenced against 34,000 people under road traffic legislation for not paying road tax, failing to display tax discs and other tax registration offences. The 2001 survey entitled Motor Tax, Motor Insurance and NCT Compliance, which was made available to the Minister, stated that, of moving vehicles stopped over a given period, 15% had no tax discs displayed; of HGVs stopped, 33% had no motor tax — I could not believe this; and of motor cycles, 26% did not display a current tax disc. The figures pertaining to vans and cars were 18% and 14%, respectively.

This is a very serious issue which requires immediate resolution. The Minister, Deputy Roche, referred on his website to the raising of this matter in the Dáil tonight. Although I acknowledge the presence of the Minister of State, Deputy Noel Ahern, I am sorry the Minister is not present. He should answer in the Dáil for not honouring the promises he made and for refusing to collect taxes.

I have a solution, which is used in the United Kingdom, where on renewal of one's tax disc, a notice is sent automatically. In the United Kingdom one is told that if one does not renew the disc within the specified period, one will be issued immediately with a fine in excess of €100.

We do not want the Garda to stop all the cars throughout the country because that is not reasonable, nor do we want to waste our time. Rather, we want new digital technology to read number-plates of vehicles that move at speed and check whether their owners pay their tax and insurance.

Ultimately the Minister must stop this scandal. Our non-national roads, country roads, are underfunded and falling apart. An extra €50 million per year is required to make them safe. In the budget last year, only €31 million was allocated for this purpose instead of the €50 million needed. This is where the Minister can bridge the gap, by obtaining the money. Everybody should share the pain of improving our roads and no motorists should be on the road unless they pay tax — it is as simple as that. The Minister has failed in his duty in this regard.

It is desirable to have an automatic fine in cases where one does not renew one's tax disc, provided the car is not sold or scrapped because it is at the end of its life. We need action from the Government. It is reneging on its promise to run the country properly and provide money for roads. The outstanding sum of €40 million is almost equal to the sum wasted on electronic voting machines, therefore, the Government cannot be taken seriously. It is not doing its job in regard to this matter.

Noel Ahern (Dublin North West, Fianna Fail)
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I am taking this matter on behalf of my colleague, the Minister for the Environment, Heritage and Local Government. The raising of this issue provides an opportunity to outline to the House the initiatives which have been introduced to combat motor tax evasion. The administration of the motor tax service has been improved substantially in recent years with the implementation of the national vehicle and driver computer system, NVDF, which facilitates real-time transaction processing by all the motor tax outlets throughout the country. Data from the NVDF are supplied to the Garda Síochána for motor tax enforcement purposes.

The NVDF has also facilitated the introduction of customer-focused initiatives such as on-line motor tax renewal and the taxing of new vehicles for the first time over the Internet. This initiative has been received very favourably by the motoring public. The statistics show that over 30% of all motorists eligible to do so pay their motor tax on-line, with a 50% take-up in Dublin. The taxation system is now more efficient and accessible and local motor tax offices can effect a faster turnaround of tax applications submitted to them.

In the year to the end of September 2006, motor tax receipts show a 10% increase as against the same period in 2005. As this 10% is significantly greater than the increase in the national vehicle fleet, which amounts to 6%, and bearing in mind that there was no increase in motor tax rates for the period in question, it suggests a very positive performance in terms of motor tax compliance. This is very much influenced by high profile Garda enforcement, particularly in recent times through the operation of the traffic corps in various road traffic and safety initiatives. The increased levels of enforcement are also reflected in the increased levels of payment of motor tax arrears. In the year to the end of September 2006 almost €19 million was collected, representing an increase of almost 11% over the same period in 2005.

The last survey on motor tax compliance dating from 2001, as mentioned by Deputy O'Dowd, estimated a persistent evasion level of 4.6%, that is, the percentage of vehicles never taxed. An evasion level of 4.6% equates to a revenue loss of €40 million in current terms. However, as I have indicated, we feel the current position is significantly better.

Some measures that have been introduced or are in the pipeline contribute in themselves to enforcement of motor tax obligations. For instance, the Garda may impound vehicles in respect of which motor tax has not been paid. The recent Road Traffic Act reduced the period of non-payment from three to two continuous months. Other enforcement initiatives are being developed by us in consultation with the Garda.

Follow-up action by the Department in conjunction with local motor tax offices has taken place in regard to under-declarations of weight for heavy goods vehicles, in particular articulated tractor units and their drawing components. The NVDF analysis indicates that an additional €1.1 million in motor tax was collected in the past year and this should be realised for each future year. It is proposed to issue reminder tax notices and follow up owners of new vehicles which remain untaxed after they have been registered with the Revenue Commissioners.

To facilitate earlier taxation following the change of ownership of vehicles, we are introducing a system whereby approved motor dealers may notify ownership changes in respect of vehicles purchased and sold by them over the Internet. This e-government project is in progress and will be operational in July or August 2007.

Arrangements have been made to issue motor tax renewal and reminder notices earlier to facilitate earlier taxing, and to reduce the period of "grace" whereby motor tax renewal applications are tolerated for up to a month after the disc expires.

We are also taking action to reduce the incidence of "non-use" declarations in support of a period where motor tax has not been paid, commonly referred to as "gapping".

I am grateful for this opportunity to inform the House about the manner in which we are tackling motor tax evasion and the evidence of success we are already achieving in this important area.