Dáil debates

Wednesday, 8 November 2006

1:00 pm

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
Link to this: Individually | In context

Question 8: To ask the Minister for the Environment, Heritage and Local Government his plans to increase motor taxation for 2007; and if he will make a statement on the matter. [36502/06]

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
Link to this: Individually | In context

I am currently examining the feasibility of more closely aligning motor taxation with rated CO2 emissions particularly for the private car category which accounts for nearly 80% of the national vehicle fleet. No decisions have yet been made on the specific changes that may emerge from this exercise; current motor tax rates have remained unchanged since 2004. However, I will be ensuring that overall motor tax buoyancy levels are sustained as an appropriate ongoing source of funding for local authorities. Current motor tax receipts up to the end of October this year show an increase of 10% compared with last year — Deputy O'Dowd has rejoined us — against a background of a 6% increase in the national vehicle fleet, suggesting there has been significant improvements in collection.

Photo of Emmet StaggEmmet Stagg (Kildare North, Labour)
Link to this: Individually | In context

The Minister has indicated he will be using motor taxation as a tool to deal with greenhouse gas emissions. I welcome that, as I believe will other Members. It appears from the record that motor taxation has increased steadily, by approximately €100 million per year. It is almost exactly that amount since 2002. Is it the Minister's intention to increase that amount considerably in view of the need to deal with the problem of greenhouse gas emissions or will he leave it steady as she goes, so to speak, at another €100 million?

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
Link to this: Individually | In context

I do not want to anticipate any changes of a fiscal nature that might be made, and motor taxation in general is of a fiscal nature, but the Deputy is correct. The national vehicle fleet including cars, vans etc. on our roads has increased steadily and as I said when Deputy O'Dowd was not listening——

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

I always listen to the Minister.

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
Link to this: Individually | In context

——the collection rate for motor tax has improved significantly. It is up 10% while the vehicle fleet grew only 6% last year.

This could be done in a way that is revenue neutral or in a way that is not revenue neutral. The general point I am making is that it would be a good idea to move to charging a tax, which more directly reflects the emissions from the pipe of a vehicle. That is the general direction but I ask the Deputy not to ask me to anticipate any changes of a fiscal nature because, unfortunately, I will not be in a position to answer him.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

I welcome the Minister's comments. Green taxes are constructive and those based on CO2 emissions would meet the needs. I am concerned that the Minister did not include HGVs in his comments because they do many more journeys than the average motor car. I do not have the emissions figures to hand but I believe that a significant number of HGVs are over six years old and therefore would be very high polluters. The Minister ought to tax cars and HGVs that are older and therefore have very high emissions. He should not shrink from that responsibility.

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
Link to this: Individually | In context

The Deputy knows I am not a shrinking violet; I am inclined to grasp difficult positions. I have listened to what he said.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

I support the Minister on it.

Photo of Dick RocheDick Roche (Wicklow, Fianna Fail)
Link to this: Individually | In context

I am grateful for that, although he does not always support me. I do not have figures on the largest number of individual vehicle miles. I will inquire if we have HGV figures but if he wants to put down a written question I will get them for the Deputy.