Pat Breen (Clare, Fine Gael)
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Question 69: To ask the Minister for the Environment, Heritage and Local Government the extra resources he is providing to local authorities to operate a dual motor tax system; and if he will make a statement on the matter. [35199/07]

Shane McEntee (Meath East, Fine Gael)
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Question 102: To ask the Minister for the Environment, Heritage and Local Government the projected costs of operating a dual motor tax system; and if he will make a statement on the matter. [35253/07]

John Gormley (Dublin South East, Green Party)
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I propose to take Questions Nos. 69 and 102 together.

At local motor tax offices, there will be no change in the arrangements for the processing of motor tax applications. The national vehicle and driver file, NVDF, which is managed centrally by the vehicle registration unit in Shannon, will be adjusted to provide for the application of CO2 based rates in respect of cars registered from 1 July 2008. The work involved will pertain to the first taxing of a vehicle as well as subsequent renewal of motor tax. Currently on first taxing or renewal of tax, the vehicle owner may attend the local motor tax office, correspond by post or make the tax application on-line at www.motortax.ie. Both the local and central systems are based on the NVDF and will be in a position automatically to apply both the old and the CO2 based rates as appropriate.

Existing arrangements, under which each car's registration number, ownership details and vehicle particulars are electronically transferred from Revenue computer systems to the NVDF, will continue to apply. This means that when a person applies to tax a vehicle for the first time the necessary information, including CO2 emissions ratings, will already be available on the NVDF to process the tax application. In respect of the subsequent renewal payment of tax, as applies at present, the tax renewal notice will be issued to motorists with the appropriate rates and the NVDF will be able to handle motor tax renewal applications where either the current engine capacity or CO2 based rates are appropriate.

On the question of first taxing, the on-line motor tax service operated by the vehicle registration unit was extended in December 2005 to enable first licensing, or taxing, of new and second-hand imported vehicles over the Internet. Almost 94,500 first licensing transactions were conducted on-line from January to November 2007. This represents 30% of all new and imported vehicle transactions processed. The on-line service has enabled local authorities to deliver a more cost effective and efficient service to the motoring public.

Carbon dioxide is the main greenhouse gas contributing to climate change. When petrol or diesel is burnt for energy in a car engine, the main emissions are water vapour and CO2, which are directly proportionate to the amount of fuel burned. Moving to a CO2 basis of assessment for motor tax fully captures the fuel efficiency of a vehicle.