Dáil debates

Wednesday, 8 November 2006

1:00 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Question 3: To ask the Minister for the Environment, Heritage and Local Government the amount his Department received in motor tax receipts in the years 2002, 2003, 2004, 2005 and the estimated total to date in 2006; and if he will make a statement on the matter. [36887/06]

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
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Motor tax receipts for the years in question are as follows: 2002, €581 million; 2003, €681 million; 2004, €747 million; 2005, €802 million; and 2006, €764 million to the end of October.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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That is a significant amount of money collected by the Department. However, the Department has informed the Minister that one in ten people evades paying this tax. In 2005 the estimated amount uncollected, which should have been used for rural roads, was €40 million. It is at least the same amount this year. The Minister has failed in his duty to bring in a proper strategy to collect the tax and those paying are subsidising those who are not. The Minister knows this but has done nothing about it.

In England it is estimated that 80% of untaxed motor cars are also uninsured. There is, therefore, a serious issue with regard to lack of enforcement of the law by the Minister and his lack of commitment towards changing the situation. What new schemes has he prepared or what action does he intend to take? Garda prosecutions were down last year when there were 4,000 fewer drivers prosecuted for evading tax than the previous year. Neither the Minister nor the Government are doing their job in this regard.

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
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I could retort that the Deputy is not doing his job as leading Opposition spokesman in this area very well. Assertions made across the House are not the same as facts.

The facts of the situation are that motor tax compliance surveys are undertaken on a periodic basis. The Deputy is misreading a freedom of information request reply received by him some time ago. The most recent survey, carried out in 2001, indicated an evasion level of 4.6%. The Deputy's assertion that one in ten motorists is guilty of evasion is not correct. We had an Adjournment debate on this issue on 26 October at which the Deputy——

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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The Minister did not turn up for it.

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
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——suggested one in ten motorists were guilty of tax evasion. The figure quoted refers to the percentage of vehicle owners, based on returns to my Department, who did not respond to reminder notices. Non response to a reminder notice is not the same as not taxing one's car. Various issues are involved. Reminder notices are issued to vehicle owners who fail to renew their tax when initially due. Many of these people will have sold or scrapped their vehicles, many will have paid by the time they receive the reminder and many cars may be temporarily not in use. The suggestion there is an overall rate of 10% persistent tax evasion is nonsense and has no basis in fact or in any of the analyses carried out over a number of years.

I take this matter seriously. The Deputy has made this particular assertion on several occasions but, sadly, repetition of an error on his part does not make the error any closer to the truth. The assertion is wrong. The figures we have are of the order of 4.6%.

The Deputy asked what has been done since the 2001 survey was carried out. The national vehicle driver file computer system, NVDF, arrangements were introduced in 2002. This system has made the collection of motor tax more cost effective and efficient. Also, in conjunction with local motor tax offices, follow up action has taken place with regard to under declarations of weight. This was an issue the Deputy rightly highlighted. The NVDF analysis indicates that an additional €1 million has been raised through that. A measure was also introduced to facilitate earlier taxing following change in ownership and this has been working effectively. There are also arrangements to issue motor tax renewal reminder notices earlier to facilitate earlier taxing because if people get notices late they may pass the due date before paying and be in arrears.

We have also taken action with regard to non use. The incidence of non use was quite high where, for example, people said they did not use the car for three months. This issue could well result in an amendment to motor tax legislation being introduced to require continuous registration. The Garda Síochána is also doing some testing on camera equipment to automatically read number plates.

There is not 10% non-compliance. If that was the case, it would be a serious matter. The figure the Deputy has is incorrect.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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The figure is from the Minister's office. It comes from his note to the Taoiseach this time last year. He informed the Taoiseach that one in ten drivers evaded their car tax and that this amounted to €40 million uncollected. He went on to say car tax would not increase and the reason for that was that he was going to change the system. However, he has not changed it. The reality is that gardaí are apprehending fewer people despite the fact the number of drivers has risen to over 2.13 million. Gardaí have caught fewer evaders than they did the year before last.

One of the most important and salient points illustrating the Minister is failing in his duty of care is that one of the reasons a significant number of people do not tax their cars is that they have not passed the NCT test. In other words their cars are not fit and should not be on the road. The reality is that these dangerous vehicles are not lying in some garage but are driven around untaxed by people who are uninsured. The Minister's lack of application in this regard is disgraceful.

The money the Minister is not collecting could be spent by local government and used to put our regional and country roads in good order. The Minister's report said it would cost €50 million per year to bring these roads to the proper standards. He only provided €31 million for that last year. Therefore, he is not doing his job. The area is an absolute shambles.

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
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The Deputy has misread and misquoted an FOI request.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I have not.

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
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I listened to the Deputy so he should allow me make my point. The note in question is 18 months old. The Deputy has shown yet again that he does not know how to use the FOI requests. I regret to have to say this to him. All of the facts ——

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Waffle.

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
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This is it. One word responses to everything. The Deputy does not want to hear the truth because he is such an incompetent Opposition spokesperson.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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The Minister is incompetent and cannot even get the electoral register right.

Séamus Pattison (Carlow-Kilkenny, Labour)
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We will move on to Question No. 4.

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
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The figure of 10% used by the Deputy is up 6% on the registered figure. He is a disgrace and a clown.