Dáil debates

Wednesday, 20 February 2008

Motor Vehicle (Duties and Licences) Bill 2008: Second Stage (Resumed)

 

Question again proposed: "That the Bill be now read a Second Time."

4:00 pm

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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I welcome the Bill. There are two very significant elements to the Bill, the increase in the motor taxation regime and the new motor taxation system based on CO2 emissions. It is rather unusual to hear any politician or public representative welcoming a Bill that increases taxes. However, I believe there is a sound basis for welcoming the notion of an increase in taxation because the taxation involved will go back directly to the local authority. As somebody who very much supports the work of local authorities, I believe that we as legislators should strive to reduce the notion of big government and the involvement of the national Government in local issues in so far as possible. The best way to do so is to empower the local authorities and the executive locally, and put the decision making to some extent where it is required — back to the people elected to do it.

This Bill, through the increase in revenues which will ultimately accrue to the various local authorities, is positive and should find a level of welcome throughout the country. There is no doubt that increasing taxes is always a problem. However, when there is a requirement to finance the various different projects in local authority areas, it is better to do it in a direct way rather than taking the funding into the central Exchequer through increases in personal taxes. I have always believed — I am sure everybody in the House would agree — that taking it into the central Exchequer always makes it more difficult to get that funding back to the local authorities in the regions. That is the problem of big government and the centralisation of government. If I recall it was you, a Leas-Cheann Comhairle, who started that. It was a very noble decision on your behalf at the time because it clearly underpins contributing money to the local authorities in a manner that is transparent and can be seen to best effect by the citizen. Wherever possible, it is important to move away from centralising the taxation system and allow this to happen.

While the Minister is not in the House, I welcome the Minister of State who is representing him. If the Minister had any doubts about the validity of this Bill, those would have been overcome by the nature of the arguments put forward by the Opposition. The level of debate had descended into an argument over second-hand cars. It is clear that in principle what the Minister is attempting to do with this legislation is positive and a step in the right direction. From the contributions I heard from the other side, nobody seemed to address the big picture but focused on the minute detail of whether cars that were purchased by a particular date would hold their value for a period of time. Somebody put forward the suggestion that sales representatives would be travelling around the country in order to increase mileage. Most of us in this House travel a significant distance every week and we would minimise the level of travel if we could.

It is worth noting the issue of local government funding. The increase in taxation resulting from the Bill will have some impact in addressing the underfunding of local authorities. The local government fund provided by the Department has an impact on local authorities. However, unfortunately, many counties argue they do not get their fair share based on demographic changes that have taken place in recent years. To get parochial for a moment, that certainly has been the case for many years in County Clare, which has not been able to remain in step with other counties when calculated on a per capita basis. In line with the decisions he has taken here to increase taxation and provide further funding to local authorities, I urge the Minister to carry out a significant review of the local government fund as it applies to the various different local authorities in order to address the significant changes in the demographics in some counties.

Some counties have fared better than others because they have not experienced the same level of influx of migration. That has put particular strain on some local authorities to deliver the services now needed. The latest census figures demonstrate that clearly and I am sure the next one will help to identify where that growth trend has continued. If it is done on a per capita basis, it would inform the decision making in the Department as to how much should be transferred from central government to each of the local authorities to allow them to deliver the kind of services needed in a modern society.

There will always be a debate on the balance between keeping taxes low to spur the economy on and assist in the kind of growth patterns we have seen for years, while at the same time having sufficient funds to allow the relevant authorities deliver the services they are charged with delivering. The difficulty lies in finding the right balance. The more that can be done through direct taxation focused specifically on the various different services, the better. Obviously, the taxation collected here is targeted at the wider local authority service delivery but more particularly at assisting local authorities in providing their portion of funding towards the construction, maintenance and development of secondary, local and regional roads within the competency of the various local authorities. The Department needs to consider that for various other services, including water pricing policy and the polluter pays principle.

The burden on local authorities for the provision of services has increased significantly over the years. The population shift is there for all to see, particularly as identified in the census. It is continuing in line with the growth of economic centres away from the east coast — it is right throughout the west. It is partly in line with the national development plan and the spatial strategy beginning to work in a coherent fashion. There is a necessity from that point of view to ensure the kind of resources required are provided. While the residential development levy provides funds to deal with some of the more localised issues, that should not be confused with the real burden on local authorities in areas such as the development of water and sewerage services.

The past five or six years have seen a virtual stagnation in the number of new sewage treatment systems being developed in rural villages purely because of the introduction of the water pricing policy that required each local authority to come up with a very significant portion of the cost on the basis that the polluter would ultimately pay from within the commercial sector. Unfortunately, that puts a burden on local authorities to amortise over a period of time those costs for which they cannot get payment immediately. That creates a burden in terms of their capacity to deal with the associated debt. The Department needs to review that in terms of the delivery of roads also.

There has been considerable debate about sewerage and the water pricing policy and its effects in that regard. We need to consider how that can be assisted in terms of the delivery of new road links required by virtue of new housing developments, etc. These changes need to be taken into account when deciding on the local government fund in future. Local government funding and motor taxation are utilised by many local authorities in a multiplicity of ways. The priority is to deliver on key services, including local and regional roads. Councils have an obligation to fund their part of that expenditure from the local government fund and motor taxation. It is critical that they do so because as communities grow, new residential developments occur, the economic model in various counties changes and new enterprises start up, there is a requirement to develop new road links. There is also a requirement to develop new secondary, local and regional roads as a result of the new motorway developments and bypasses around various towns. Therefore, there is a significant need to upgrade our road network and we should be mindful of that aspect. Anything that helps directly to continue local authority funding is positive and for that reason I welcome the increase in taxation from which positive benefits can accrue.

We must also improve expenditure on local and regional roads. Earlier today, the Oireachtas Joint Committee on Transport received a good briefing from Mr. Noel Brett of the Road Safety Authority and the Garda Commissioner concerning their current strategy to reduce road deaths. There is no doubt that spending on local and regional roads has a positive knock-on effect on reducing road deaths. It is, therefore, incumbent on us and the local authorities to improve road safety.

There is a health and safety requirement concerning road work sites. Nationally, we have paid scant regard to the treatment of construction sites on secondary, regional and local roads. Considerable efforts are made in this regard on some national routes, but construction work on minor routes is less than perfect. In other countries, particularly the United States, high visibility signage is used to mark the most minor works on local and regional roads. Police cars must be stationed at the site of all road works in the state of Massachusetts, for example, although I am not suggesting that we should go that far. Nonetheless, we must approach the road safety issue realistically.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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The Deputy would be a bad passenger for the Greens in that regard.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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I am sure we can work on that. As the Deputy knows, we have been working very successfully with our colleagues in the Green Party to deliver a strong and buoyant economy, and I am sure we will continue to do so. We are in broad agreement on policies.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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The Deputy has moved a long way from the press releases he sent out before the election.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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That is right.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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The Deputy will be well aware that when it comes to electioneering, there is none better than on this side of the House. He is not too bad at it himself. When we get past the elections, however, we are well able to work constructively.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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They are anti-farmer and anti-rural Ireland.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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It is clear, perhaps to the disappointment of some in the Opposition, how well Fianna Fáil, the Green Party and the Progressive Democrats continue to put together a constructive Government.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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It is early days in bed yet.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
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This is part of how we propose to continue, sharing ideas on the understanding that we do not have all the answers ourselves. We are happy to co-operate with everybody to try to bring about a solution that best fits the needs of this society. Reducing road accidents is very much a part of that approach by two Departments working together, although with separate responsibilities. Some 96% of our roads are secondary routes. According to the statistics, 2.5% of all accidents result from the structure, state or quality of the road concerned. We should examine that matter in the context of this debate. There has been a significant increase in such road accidents. In 1996, the figure was 1.5%, but it jumped to 2.5% in 2007. We need to address that important 1% increase, which is worrying and requires urgent attention. I hope the necessary funding will come from the Department to be better used by local authorities to target specific accident sites on the road network.

There has been a strong focus on spending for national primary roads, which is welcome, but the bulk of that expenditure has gone into the 4% of the network that comprises inter-urban routes. While such expenditure is essential, it is unfortunate that more of that funding was not spent in previous years. In addition to the positive impact it has had on our capacity to continue with balanced regional development and the roll-out of economic infrastructure across the west, it has been helpful in continuing to attract foreign direct investment.

As the Acting Chairman, Deputy Jan O'Sullivan, will be aware, in our own region significant foreign direct investment has been provided in recent weeks by the Zimmer company. That is a strong indication that our infrastructural development, including the improved road network, is beneficial in attracting such blue-chip companies that continue providing local employment throughout the mid-west and the west generally. Investment in national routes has helped us to compete internationally in attracting that level of foreign direct investment. We must support rural communities by funding the development of non-national roads so the increases provided for in the Bill will be extremely helpful.

It would be wrong not to acknowledge that while a lot of money has gone into national primary and inter-urban roads, there has been a lack of funding for national secondary roads. While this may be somewhat parochial, in County Clare the N85, N67 and N68, which form part of the national secondary route network, are in need of urgent funding. Revenue has been committed for the next two years for inter-urban routes, but I urge the Minister to consider changing that funding structure when the inter-urban routes have been completed. It could then be put into some of the national secondary routes.

The Ennis to Kilrush road in particular needs a complete upgrade as do the roads running along the western seaboard of County Clare, and the Ennis to north Clare route. Those three significant stretches of national secondary routes require urgent attention and the requisite funding. We should examine that matter in the context of completing the national primary inter-urban routes. We should try to put the same level of currently committed funding into these routes as we move towards 2010 and 2011.

It may be a job for the National Roads Authority on direction from the Department, but the authority should examine road quality. I often wonder if it is necessary to build some regional roads to the standard to which they are currently constructed. To some extent, we have seen a change in some of the fundamentals of road building that has allowed us to deliver quality roads more cheaply without acquiring the same amount of land or building the same level of foundation. We should examine that matter in the context of regional and local roads.

The CO2 emission-based motor tax system is welcome and reflects the shared approach by our party and the Minister's party to protecting the environment. We are delighted that it changes attitudes and puts in place a fundamental shift in our thinking. In addition, it moves away from the notion of using gas-guzzling cars for vanity alone. Such gas-guzzling vehicles must be consigned to the ranks of the vintage car class. The Bill's provisions in this regard demonstrate enlightened thinking on transport for a purpose rather than for show. We must instil such thinking in the minds of people who continue to drive cars that are effectively damaging the environment. While these types of provisions may appear to target the consumer, the reality is that they will target the manufacturers and will test the minds of the engineers who developed the four-stroke engine over many years. I have no doubt that within two to three years, we will have more powerful cars that conform to the emissions levels required under this legislation.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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I propose to share time with Deputy Ring.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Is that agreed? Agreed.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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This Bill is a legislative measure to give credence to the futile flutterings of the Minister for the Environment, Heritage and Local Government in regard to the provision of a new motor tax system based on CO2 emissions for new and pre-owned imported cars registered on or after 1 July 2008. A motor tax to reduce CO2 emissions may achieve an increase in revenue to the Exchequer but will have little or nothing to do with engine efficiency or the environment.

If the Green Party wants to appear green, that is, environmentally friendly, it will not accomplish it with this Bill. Engine efficiency is about using the smallest amount of fuel over a set distance. The motor tax, however, is a flat rate that takes no account of the amount of fuel used or the emissions produced over a particular distance. It will do little to help our environment. Pretending that the size of the engine is the sole factor in greenhouse gas emissions is to use the other meaning of the word "green", which is "naive". It would be far more logical to tax fuel on the basis that the more efficient one's car, the less fuel one uses, leading to the desired environmental impact.

Registering or owning a car does not cause emissions; driving it does. If the Minister is serious about reducing CO2 emissions to meet our Kyoto targets and protect our environment, he should consider scrapping VRT and motor tax and replacing them with an additional tax on petrol and diesel. Ten years of bad planning, urban sprawl and public transport chaos in this city and in many rural towns will not be undone by the measures in this Bill. Taxpayers will continue to pay more than €60 million in carbon credits. The Government should be ashamed that we are in the position of having to purchase these credits. Another limitation of the Bill is the provision that the tax will be payable at the time of acquisition or of first putting into service of a passenger car. As registration is a once-off tax, this may not be the most effective means of controlling CO2 emissions as future usage will not be taken into account.

We cannot simply point an accusing finger at consumers. A survey conducted by National Irish Banks reveals that consumers are getting ready to embrace the move towards energy efficiency, such as the use of diesel engine vehicles. According to the survey, 72% said that following the introduction of the new regulations, they would, or would be likely to, buy a diesel rather than a petrol car to decrease their CO2 emissions. This is indicative of the level of commitment among citizens to meeting our Kyoto targets.

Despite this, who will carry the can for the Government's panic move to avoid EU sanction? Yet again, taxpayers are being asked to make up the shortfall. The proposed increase in motor tax is nothing more than a stealth tax to the tune of €83 million. The Minister's assertion that there will be no increase is a false promise. There will undoubtedly be an increase. We should not put all the blame on the withering Greens, however, but should give equal billing to their colleague, the Tánaiste and Minister for Finance, Deputy Cowen, who sold the Minister for the Environment, Heritage and Local Government down the river in his Estimates for 2008.

In one of the most negative assessments of our economy since 1999, the European Commission reports that Ireland's fiscal position is expected to register a noticeable deterioration in 2007-08. The Commission's economists describe the Government's projections of a decrease in real economic growth from 4.8% in 2007 to an annual average of 3.5% until 2010 as "plausible". In other words, like we in opposition, they are taking the Minister's economic forecast with a grain of salt.

Another attempt by the Minister to impose a penalty on fuel consumption was to give a sudden and ill-conceived blow to passenger transport services by removing the excise duty on fuel used by this sector. Such a plan would sound the death knell for private coach operators and deliver an appalling blow to rural communities that do not have access to regular public transport services. In an outrageous plan, €29 million of tax relief was taken from public and private bus operators to comply with an EU directive, but those affected were kept in the dark until the last moment by the Minister. The bus operator in question only accidentally discovered that the rebate was to be removed. So much for transparency and openness. How green is green? What way is this to conduct the running of the Department of the Environment, Heritage and Local Government?

Instead of trying to take away people's livelihoods and adding to the already dismal rural transport situation, it would serve the Government better to tackle CO2 emissions by providing an efficient and joined up public transport system to discourage car dependency. Given that we do not even have a viable transport infrastructure in our capital city, it is not surprising that transport continues to be the dominant growth sector, with emissions 682,000 higher in 2006 than in 2005. This represents a 5.2% increase on 2005 levels and a 165% increase since 1990. The EU has informally pointed to the rapidly rising emissions from our transport sector as the cause of our very high carbon footprint relative to our population and geographical size.

If the Minister were committed to the environment he would advocate alternative, cleaner modes of public transport. The bottom line is that the Government has failed to facilitate people in switching from private cars to public transport. There is no public transport system worth talking about in this State and that is firmly the fault of the Government. There is nothing in the programme for Government about reintroducing rail freight as a method of tackling CO2 emissions, despite the fact that fuel consumption by road freight increased by 255%, or 9% per annum, from 1990 to 2006. Such statistics go a long way to making a joke of the Minister's promise to cut national emissions by 3% per year in the lifetime of the Government. He had better get a move on because he does not have much time.

Not only is the way the Minister is administering the new CO2-based car tax regime weak on environmental impact, it will also potentially destabilise the second-hand car market. Potential buyers will quickly realise that if they travel north of the Border or to Britain to purchase a second-hand car and then re-register it here, they will be eligible for the new CO2 tax system and thus save a significant amount of money in tax as compared with the purchaser of a similar vehicle in the State.

Once again the Government has failed to follow through on an issue and to show evidence of joined up thinking. In supposedly solving one problem, the Minister for the Environment, Heritage and Local Government is creating several others. Moreover, he is not even solving the problem at hand, which is Ireland's CO2 emissions.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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I want to highlight three issues during my brief contribution to this debate. I will start by explaining why the Bill before the House represents hypocrisy at its worst. There will be a referendum on the Lisbon treaty soon. We will tell the people of this country that the European Union has been great for Ireland. We were told during previous EEC and EU referendums that people would be given the right to free movement within the EU. I thought this legislation would allow people to import cars from other EU member states. If the Government wants people to vote in favour of the Single Market, why does it not allow Irish citizens to cross the Border, within their own country, to buy cars and bring them back to this jurisdiction? Why are people not allowed to bring cars back from England or Germany without being taxed by our Government? If we do not allow people to act in such a manner, we are not providing for free movement or a Single Market. The market is being hindered by the taxes being imposed by the Government.

I will return to the Single Market in a moment. The most important point I want to make relates to people who bought environmentally friendly cars with low CO2 emissions in January 2008. I want to explain this point to those Fianna Fáil backbenchers who will speak out of both sides of their mouths during this debate — they will tell us what is wrong before voting tonight with the Minister, Deputy Gormley, and the Green Party. They will turn yellow when faced with the Greens. I will outline the problem. I want the departmental officials who are present to listen to what I have to say. This is wrong. When the Revenue Commissioners find something wrong, they address it by following people and making sure they get the taxes for the State.

I refer to people who have recently bought emission-friendly cars and taxed them for the year. When they tax the same car next year, they will not get any benefits from the legislation before the House. They will be taxed the same way in 2009 as they are being taxed in 2008. There will be a knock-on effect when they try to trade the car in at a garage. The owner of the garage will say he has to take €5,000 off the value of the car because the Minister created an anomaly in this legislation. If the garage sells the car to Joe Soap, he will have to pay tax on it at the higher rate. In a few years' time, garages will have hundreds of new and second-hand cars to which the lower tax rate will have applied from July 2008. That anomaly needs to be corrected. It is very simple. It is wrong. If it is wrong, it should be corrected in this legislation.

The Government is great at taking tax off people, but it needs to be just as efficient in correcting the anomaly I have highlighted. As Deputy Bannon said, people will cross the Border to buy second-hand cars. It is very simple. After July of this year, the lower tax rate will apply in this jurisdiction to cars with low emissions which were taxed in Northern Ireland prior to July 2008 before being brought to the South. It is daft. A person who lived within the law by buying an environmentally friendly car will pay the higher rate of tax on that car from next year. This anomaly is caused by an error in the legislation. The Government should ensure that people do not have to go to court to sort this problem out.

The faults in this legislation can be sorted out on Committee Stage if the Government introduces the necessary amendments. It is very simple. If it is wrong today and tomorrow, it will be wrong next week if it is not corrected. Fianna Fáil backbenchers should not tell us what the problem is — we know what the problem is. They should make that point to the Minister, Deputy Gormley, who represents Fianna Fáil's partners in Government. The Green Party is the partner Fianna Fáil never wanted. I am sure Deputy Fleming remembers when Fianna Fáil used to issue statements claiming that the Green Party would be bad for the economy and bad for rural Ireland. The Greens were not bad when Fianna Fáil was looking for a coalition partner, however. They were okay then. Everything was fine then. The Minister should correct this aspect of the legislation because it is wrong.

The final point I wish to make relates to road safety. Perhaps the Minister, the Government and the officials in the Department can address it. We are familiar with the proposal to establish a fund to raise money for local authorities. Local authorities have no money. The increase in the funds they have been given this year will be cancelled out by inflation and wage increases. There will be no money left for expenditure on roads. Can the Minister, Deputy Gormley, explain what we have got against putting up signage in this country? I can give Deputy Fleming an example that relates to his constituency. I accept that great work is being done as part of the road works at Athlone, which will bring people to Dublin more quickly. Many people from County Mayo are confused by the sign at Athlone telling people how to get to Tullamore. I do not know why a sign for Dublin was not put up at the same time. Some poor devil had to get out of his car and take out his paint brush to put the word "Dublin" on a sign. Many people who wanted to go to Dublin were ending up on the road to Tullamore.

Similarly, many people from Mayo and other parts of the country have contacted me to complain about the signs they encounter when they get onto the section of the M50 currently affected by road works. It is a very simple thing. What is wrong with putting up a few signs? I do not see the point of the signs which say "The South" and nothing else. I thought we were in the South. When people get onto the narrow section of road that is under repair, they see signs saying "The South". There are no signs — just arrows — telling them where else they can go. Many people end up having to pay to go over the toll bridge before they get a chance to drive towards the city centre. The Government is great at taking tax revenue from people, but it does not seem to take any responsibility for road safety or road conditions. I do not know why proper signage cannot be erected in Dublin and every other city, town and village in the country. What is wrong? Do we not want people to know what we have in this country? Do we not want them to know where they are going? Is it not very simple to put up a sign? What is wrong in this country that we cannot put up signage?

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Hear, hear.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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People can be killed in accidents that happen after they stop to figure out where they are. I never hear the Road Safety Authority complaining about that. They should be complaining about the fact that people are being killed on the roads because they do not know where they are going. When people go down the wrong road, they have to turn back, which can lead to accidents. It is a very simple thing. I call on the Minister and the Government to provide the necessary funding, once and for all, so that local authorities can improve road signage.

Photo of Máire HoctorMáire Hoctor (Tipperary North, Fianna Fail)
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We have done so.

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)
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The Government has had ten years to do something.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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We have not seen any action yet.

Photo of Máire HoctorMáire Hoctor (Tipperary North, Fianna Fail)
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If the Deputy had listened to the speech made by the Minister, Deputy Noel Dempsey, last week——

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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I have been listening to him for ten years.

Photo of Máire HoctorMáire Hoctor (Tipperary North, Fianna Fail)
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——he would know that significant additional funding has been provided.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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I will never forget that the Minister, Deputy Noel Dempsey, gave us e-voting machines in every town and village in the country.

Photo of Máire HoctorMáire Hoctor (Tipperary North, Fianna Fail)
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The Deputy chose to ignore what the Minister was saying last week.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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The storage of the machines has cost us over €100 million to date. I am sure all his speeches are in storage too.

Photo of Máire HoctorMáire Hoctor (Tipperary North, Fianna Fail)
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The Deputy does not want to listen.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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If we check the Minister's speeches, we will find that he has been preaching for the past ten years. The trouble is that we need action. I do not want read last week's speech. I want to see some signage in this country. It is a very simple thing. All I am asking for is a small bit of signage.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Hear, hear.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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It is a very simple thing. As I have said, my final point relates to road safety. A new section of the N5 in County Mayo, as far as Ballaghaderreen, was recently opened. I ask RTE to send a journalist to the area to see what has been done. I do not know why a white structure had to be put on the new road. I do not have the correct term for what the thing is actually called. I suppose a massive amount of money was spent on the road. Bollards have had to be erected because accidents were happening on the road, which is a national primary route. People who were driving along the road suddenly found that they had gone over the structure to which I refer. There was an accident or two.

I do not know where the NRA got the engineers who designed the road. I do not know why this structure was put up. I do not know what benefit it is supposed to have. I will take a photograph of the structure the next time I travel on the road on a bright evening. I will send the photograph to the Minister and the NRA. Perhaps one of the daily newspapers will run a quiz asking its readers to guess what purpose the structure serves, or why it was deemed necessary. The only thing it does is endanger the lives of people in cars. Someone will be killed at that spot. I have drafted a letter on the matter, which I intend to send to Mayo County Council, the NRA and the Minister. They will have to take responsibility if someone is killed at that location. They have created a problem that did not need to be created. They create problems when they build new roads.

I am concerned about the role of local authorities in the area of health and safety. People have told me about the problems which arise when diversions are needed during road works or in the aftermath of an accident. I have seen these "diversion" signs. Drivers are often diverted all over the country because there are no signs to bring them back to their original route. For all the local authorities care, one could end up in Louisburgh or Ballymena in Northern Ireland. I do not know why they do not put up signs telling drivers where they have to go. That would be too much trouble. It is a health and safety issue and it would be good for them to get involved in that to save people the hassle.

The legislation is about raising revenue for the Government, it is not about being green, yellow or blue. It is another stealth tax.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Through the back door.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Businesses and the public are under pressure. I am from rural Ireland and we have no public transport. We do not have the Luas or Dublin Bus or the taxi service people have in the cities. The Government does not mind subsidising Dublin but we need our cars and the Government is taxing us to make sure we will have no cars. It is all right for the Minister, he can cycle to work in the morning, cycle home for his lunch and dinner and cycle home at night. I cannot cycle from Dublin to Westport. If I could, I would, but I need my car because we do not have proper public transport in the west.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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I welcome the opportunity to contribute to the debate. I would like to respond to a number of the shocking comments made by Fine Gael Deputies who should be ashamed of themselves. I hope they are broadcast on television later. They are seeking the replacement of VRT and motor tax with an increase in excise duty on petrol and diesel. Diesel and petrol costs approximately €1.15 a litre, or €5 a gallon. Fine Gael proposes an increase to €10 a gallon.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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That is not true.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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Two Fine Gael Members demanded that the Government scrap VRT and car tax and put a tax on the people who use vehicles.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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That is not true.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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That means they pay at the pump. Fine Gael wants to double the price of a litre of petrol and diesel.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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That is the Green Party policy. The Deputy is mixed up.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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Two Fine Gael Members made that proposal. I hope the people listen carefully to this because of the effect it will have on inflation and resulting job losses. Many of us represent rural areas and parents must drive their children long distances to school. People have to drive significant distances to shop and to their places of employment. We need our cars in rural areas to cover those long distances. If Fine Gael wants to double the price of petrol, it is no wonder the party is in opposition and Fianna Fáil is in government.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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I am not listening to any more of this nonsense. I must leave the House.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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I hope the party continues with this nonsense because the people will see through it. If they threaten such an increase when in opposition, I would hate to see what the party would do if it got its hands on the levers of power. Fine Gael would probably ration petrol and diesel as well as doubling its price. Thank God there is a little common sense on this side of the House.

As chairman of the environment committee, I look forward to the passage of the legislation in the coming weeks. It will be before us on Committee Stage next week. The legislation is a major step forward in the war to reduce carbon emissions. In the first week of December 2006, my constituency colleague, the Minister for Finance, announced in the House that he would examine motor taxation, carbon taxes and carbon emissions. During 2007 substantial consultations took place and progress was made in this regard. Changes were announced in the budget, which are being provided for in legislation before the House this week and next week.

There are two aspects to the changes being introduced as part of the overall move to tax carbon emissions. The changes in VRT, which one pays when one purchases a car, are being dealt with on Committee Stage of the Finance Bill, which is before the select committee now. This legislation deals with annual motor tax. Two parallel Bills are going through the House as part of the root and branch approach to carbon emissions and the introduction of a carbon tax.

People give out about changes in tax regimes, but governments have always used taxation as a major method of influencing change in society. There is more to taxation than increasing VAT or other taxes by a few cent. In years to come, legislation will be introduced as this form of taxation evolves and this Bill is the first major step. I refer to tax reliefs and changes in the taxation system that have led to changes in society as we embark on a new road with a new tax, which will have a major impact when people look back in 2050.

Mortgage interest relief is a strong feature of the tax code and it has resulted in Ireland having one of the highest home ownership rates in the world. Export sales relief and the Shannon free zone were tax incentives introduced to encourage companies to export from particular locations. Urban renewal schemes have been of great benefit to help breathe new life into many towns and cities. The Irish Financial Services Centre is in place because of changes to the tax regime. Many hotels have been built throughout the State as a result of the tax relief on hotels. When I entered Leinster House first, we had two hotels in County Laois but now we have seven or eight. They were developed and opened and they have been fully functioning for the past five years because of changes to the tax regime.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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One or two have closed as well.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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The 12.5% corporation tax rate has helped companies while the major reduction in capital gains tax from 40% when Fine Gael was in government to 20% has been hugely beneficial. When Fine Gael was last in government income tax was almost 60% but we have reduced it to 41%.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Because Fianna Fáil spent so much.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Did the Deputy ever hear about the national debt?

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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More people are willing to work and they can keep their own money. People are more concerned with doing their week's work and they are happy to pay 20% rather than 60%. Changes in taxation influence the way society functions and this legislation is another example. The new motor vehicle tax will be based on carbon emissions per kilometre. I hope somebody will explain what that means. What kilometre are we talking about? Are we talking about a kilometre on a bench in a factory where the car is made in Germany or Japan? Are we talking about a kilometre on a standard Irish road? Is it a kilometre uphill or downhill or on the level? Is the wind at one's back or in one's face? These factors might seem trivial but the basis on which the tax on carbon emissions is introduced in legislation must be fair and transparent and comprehensible to ordinary people. Carbon emissions per kilometre seems a simple concept but I would like it explained and fleshed out so that ordinary people can understand what we are doing.

I accept there are anomalies in the legislation but it is the first step in this area. I am satisfied a number of the anomalies will be eliminated during the passage of the Bill. However, legislation in this area will be introduced annually and when people see how it operates over 12 months, we will have practical experience under our belt this time next year, and if changes need to be made, they can be introduced. I agree a man or woman who buys a car on 30 June will not only pay VRT at time of purchase, he or she will also be caught for the higher annual motor tax rate for the rest of the car's life, unlike the person who purchases a car on 1 July. It will inevitably result in a collapse in car sales in many categories between April and June but maybe the industry will gear up for that challenge. The reason 1 July is set out in the legislation is because the Society of the Irish Motor Industry asked for it.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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The Government should not give into interest groups. It should do what is good for the public.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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This could as easily have been introduced from 1 January but car dealers had a lot of cars on their forecourts for which they had entered into contracts. If this fundamental change was made at the start of the year, they could have been left with unsold cars, so they needed the extra six months. Car dealers have told me that the price of some medium sized cars will drop by between €5,000 and €7,000 on 1 July.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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So they should.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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That is good news.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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If the Government is serious about its proposals, that is what should happen.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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It is going to happen on 1 July and people will be in a position to make an informed choice. The issue of backdating annual car tax at the lower rate for cars purchased before 1 July gives rise to problems. If a person purchases a car before that date, he or she will be hit with the higher tax for the rest of that car's life. This time next year we will see how the issue develops.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Would the Deputy buy a used car from the Minister?

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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I am not in the business of making deals like that.

I do not like the fact that the legislation seems to give an inordinate advantage to imported cars. One can import a two year old car from Northern Ireland and register it in Ireland after 1 July. That might give a significant incentive to import second-hand cars. I do not know why that provision was made because it could cause serious problems for the motor trade. If that hole is to be plugged, it should be done as soon as possible.

The annual duty on cars will start at €100 for vehicles first registered on or after 1 July 2008 for which CO2 emissions do not exceed 120 g/km. Under the existing arrangement, any vehicle not exceeding 1,000 cu. cm. has a tax bill of €165. Even for the smallest car, there is already a reduction. Cars at the top of the range which exceed 225 g/km will be taxed at the rate of €2,000. That compares to the current regime whereby 3 litre cars are taxed at €1,491. There will be severe annual penalties for people who buy cars falling within that range. The Schedule to the Bill provides for an annual tax of €2,000 for cars that:

(I) cannot be confirmed by the Revenue Commissioners by reference to the relevant EC type-approval certificate or EC certificate of conformity, and

(II) the Revenue Commissioners are not satisfied of by reference to any other document produced in support of the declaration for registration pursuant to that section 131.

I think that means if people import cars for which satisfactory documentation cannot be provided to the Revenue Commissioners, they will be charged €2,000 per annum. That will help to curtail a large volume of imports. If I am wrong, I hope the Minister will correct me.

This income will be used to fund local government. This year more than €1 billion will be raised through motor tax. The parties opposite advocated the abolition of this tax and its replacement with an increase in the price of petrol and diesel but that would push the price of fuel up to €10 per gallon. People would be horrified if they listened to the comments made in that regard by Fine Gael Deputies.

Road transport accounts for approximately 20% of emissions across Europe, with private cars comprising 12% of that figure. It is important, therefore, that we proceed on this issue. The proposals were announced in budget 2006 and implemented in budget 2007. I am sure the legislation will be further refined in coming years.

The Minister stated that requirements pertaining to the display of information on car fuel economy and CO2 emissions were introduced in 2001 on foot of an EU directive. All passenger cars offered for sale or lease in Ireland must be accompanied by a fuel economy label and display information on the vehicle's fuel consumption and CO2 emissions. That is news to me. I bought a couple of cars during that period but that information was never brought to my attention. The regulations also require the publication of a guide for consumers on fuel economy and CO2 of all makes and models of new passenger cars for sale in Ireland and that similar information be included in promotional material and advertising. The only information on cars of which I am aware is whether they can accelerate from 0 km/h to 60 km/h in three seconds. I am more interested in the car that can go from 60 km/h to 0 km/h in less than three seconds.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Zero to 60 in three seconds is not bad.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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The Minister might deal with noise emissions from cars. Every Deputy has had representations on that issue from elderly people. I am not a killjoy and I acknowledge that young men like to own boy racer cars and pimp their rides but they upset old people when their exhausts make loud noises at 2 a.m.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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That is the first decent comment the Deputy has made.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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It is a case of pollution from cars. I understand that gardaí in Portlaoise are purchasing equipment to check noise levels on cars.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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They do not need equipment. All they need are their ears.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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I concur with the Deputy that common sense should prevail but documentary evidence is needed in the courts.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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The Deputy has gone upmarket.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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One would not get far by saying "it sounded very loud, your Honour". More specific evidence would be needed. Officials from the Department of the Environment, Heritage and Local Government might consider legislation to deal with the issue of noise pollution. We were all young once and we all loved to whizz around in cars, so we should not turn on young people just because we have grown older. We would not have appreciated such an attitude in our day.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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We did not do it.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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We could not afford cars. We had bicycles, or a Honda 50 if we were doing well. I am pleased that the Minister is proposing to change the requirements on the display of new labels with effect from 1 July 2008 to coincide with the introduction of the CO2-based motor tax and vehicle registration system. It is his intention that the new label will include consumer friendly information on vehicle CO2 emissions based on the seven CO2 bands set out in the Schedule to the Bill. The label will be similar to energy rating labels that already exist for many consumer electrical goods. We are familiar with such goods — washing machines, refrigerators, cookers and toasters — because we have them in our homes. The new label will also include information on fuel efficiency, the amount of motor tax payable and the applicable rate of the vehicle registration tax. The Minister is proposing to introduce separate legislation to give effect to these proposals and I am pleased that is the case. This was part of an EU directive that has never been implemented in Ireland. Following its introduction, people will know the practical effect of what is involved when they go to their local garage.

This legislation is intended to raise an additional €83 million for the local government fund. The Minister for Transport, Deputy Dempsey, announced a significant increase in funding on Friday last. I was surprised by the size of grant he allocated in respect of road signage in my constituency. Individual councils are responsible for the activities of their engineers. One could visit every town throughout the country and find stupid signs that were erected by engineers who are also possibly stupid. Due to the fact that these people know where they are going, they are of the view that everyone else does too. Signs are erected by people who know the roads, but they should be put in place by those who are not familiar with the roads.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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It is part of a quiz.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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This is not an issue for the national Parliament to discuss. However, I understand people's frustration.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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One can go in two or three directions and still end up in the same place.

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail)
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If we could legislate for common sense among road engineers, I would be in favour of doing so. However, life is not that simple.

I welcome the Bill, which represents a first step on the road. We will return to this issue on an annual basis. As Chairman of the Joint Committee on the Environment, Heritage and Local Government, I look forward to a speedy and orderly Committee Stage debate on the Bill, which I hope will be enacted and implemented by 1 July.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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I wish to share time with Deputies Durkan and D'Arcy.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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That is agreed.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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I welcome the opportunity to discuss transport-related issues, even though I am sceptical about much of what has been said. I am glad Deputy Fleming is still present. It is amazing how certain Government backbenchers, particularly in their contributions to the debate, have wrapped themselves around the Green Party.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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They are like boa constrictors.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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We have all gone green.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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For six to 12 months prior to the general election, these same individuals were advising people at cumann meetings in every constituency not to vote for Fine Gael or Labour because both parties were liable to enter government with the Green Party and that would destroy the country. Six months after going into government with it, they are now saying the Green Party is great and that it is good for the country.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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It is a moving sentiment.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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If there is anything I hate in politics, it is hypocrisy.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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People licking up to others.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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We should highlight such hypocrisy as much as possible. Those in the Green Party used to be dangerous but now they are beautiful, wonderful people.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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They are on the inside now.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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The hypocrisy to which I refer is unfair to the members of the public who voted for particular individuals in this House on foot of what they said. We should not be afraid to make such hypocrisy an issue, particularly because people gained votes from engaging in it. If they had a second chance, there are those who would not vote as they did in the election.

I should return to the matter at hand.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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One could spend a great deal of time talking about hypocrisy.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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Yes. There are a number of issues I wish to highlight in the context of our emissions targets under the Kyoto Agreement. We have a responsibility to our European neighbours in respect of this matter and to future generations in Ireland and throughout the world that will be obliged to live in more difficult conditions. We must do what is good for the environment.

We are dealing with this matter in the wrong way. We are tinkering around with taxation but we have failed to examine the cause of emissions. I refer to the transport system. The way railways here have been neglected is nothing short of a disgrace. We do not encourage people to transport goods by rail. The Minister of State, Deputy Hoctor, will be familiar with the mines in County Tipperary which transport what they produce to Cork by road. When planning permission was granted in respect of these mines and others throughout the country, those developing them should have been asked to transport what they produce by rail. There is a great railway line from Dublin to Cork. Many railway lines throughout the country have either been closed down or are not as busy as should be the case. There is major room for improvement in rail infrastructure.

It is time the Departments of Communications, Energy and Natural Resources, Transport and the Environment, Heritage and Local Government came together and adopted a position on transport, particularly heavy goods vehicles. Any number of trucks use our roads 24 hours a day and pump emissions into the atmosphere. The goods these vehicles carry could be moved much more efficiently by rail. We do not take this matter seriously. If we are to be successful in the area of reducing emissions, the Departments to which I refer must come together and draw up a plan to make our transport system more efficient.

Deputy Fleming referred to noise emissions from motor cars. I cannot but agree wholeheartedly with what he said in that regard. No matter where one goes, one will come across small cars that make enough noise to blow one's ears off. The position relating to such cars must be regulated.

Many people throughout the country are obliged to travel to work but they would not have to do so if they had access to broadband. This would reduce the number of cars on the road. However, the roll-out of broadband has been extremely slow and many towns and villages do not have access to it. That is unfair.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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I am sorry we do not have more time to debate this matter. There are a number of issues which one could discuss at length.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Bring in Deputy Terence Flanagan.

5:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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We could even deal with the Government backbenchers who have moved from being disgruntled to being gentle and loving and who are cooing admiration for their colleagues in government.

I recall when Members on this side used to pity the poor Progressive Democrats, particularly when we were concerned about their existence. We were of the view that, engulfed as they were in the massive embrace of Fianna Fáil, there could be only one outcome for them. It seems we were right because that is how matters have begun to unfold. However, now the poor Green Party is caught in that embrace. Not only are the members of the Green Party enjoying snuggling and licking up to Fianna Fáil, they do not realise that, even as they do so, the life is being sucked out of them. Slowly but surely they are being strangled.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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I am not sure whether this is relevant to the Bill.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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It is relevant. It is important that organisations such as the Green Party are allowed to remain in existence. This is an environmental issue, a motoring issue and a taxation issue and it is entirely relevant.

To get to the kernel of the issue, the Minister referred earlier to increases. We should remember they could not deal with the environment or the emissions, as was proposed by Fine Gael and Labour in Opposition before the election, by suggesting there be a precise reduction everybody could identify with regarding emissions. The increases are 9.5% for cars below 2.5 litre engine capacity and 11% for cars above that level.

There is a penalty for the cars above the specified engine capacity, with which I do not have a problem. There is also an increase for those below. The stick and the carrot are wrapped up together in one heavy bludgeoning instrument that will be unleashed on the heads of the poor unfortunate population.

There has been much talk about transport in this country recently and I will deal with two specific subjects. We must be realistic on an economic basis when evaluating our position. The transport system in the country was and still is totally outdated. We were never geared up for modern transport and never moved along with investment in the 1960s, 1970s, 1980s or 1990s. We have not done so since the foundation of the State.

People speak about the degree to which the problem has arisen in the past ten years, the fact is the problem was not there beforehand because we exported our population for the previous 50 years. The perspective is completely different from that of other European countries. The experts should be careful they do not wrong-foot themselves economically and cause serious problems for the country.

I have other points. The selling point on this issue was that the money was going to local authorities. Everybody thought this was wonderful and the Government backbenchers jumped up and down and clapped their hands, cheering. It is untrue, however, as the amount of money available to local authorities has decreased on another level.

My colleague, the Minister of State from Kildare South, Deputy Seán Power, will have travelled over the potholed roads of north and south Kildare, in urban and particularly rural areas. All the people there can do is replace the suspension on their cars at least every six or seven months because the roads are in such an appalling condition.

I blame the Government backbenchers for this, just for want of blaming somebody. Somebody must be blamed in this case and they must stand up. I hear the Fianna Fáil backbenchers have been at least standing up on the pharmacy issue in the past couple of days. Now is the time for the Government backbenchers to stand up and brace the Government on this issue, if they have a conscience in that area.

I remind the Government that we should not be told of the great things which will happen to the roads in the country as the amount of money going to them has been reduced. The proof of this is that all local authorities in the country dramatically increased the rents of local authority houses in the past number of weeks. There were 100% increases in some cases. Development levies have also gone up. There have been all sorts of increases, as cheques can be written in order to extract more money from the unfortunate consumer.

We have seen and heard much criticism of the motorist in recent times, as if he or she was a potential criminal who should be put off the road at the earliest opportunity. They are said to be doing incredible damage. Deputy Ring and others have referred to the people who actually damage the roads.

I remind the Minister and the Government front, back and middle benches that the unfortunate motorist contributes more than €5 billion per annum to the Exchequer. For that, he or she will get clamped if they park in the wrong place or if they cannot find a place to park. If they drive to a railway station and cannot find a place to park there, they get clamped again. A congestion charge is now being considered for when they drive into towns in certain parts of the country. That is a financial clamp.

Very little credit is given to the fact that a very sizable commitment is made to the Exchequer by the motorist of all shades, opinion and size. Very little recognition is given by the Government but the motorist is paying through the nose for the provision of services that do not come about. It is extraordinary.

It is my sad realisation that my time is nearly concluded although I have many issues on which to speak. I agree entirely with the concept of engines designed for lower emissions. They will be very beneficial. Technology has advanced greatly and can advance much more, creating improvements that we have not even examined yet.

Long may the happy loving family of the Greens, Fianna Fáil, Progressive Democrats and the Independent Government backbench supporters continue to walk, drive and cycle in the various modes of transport available to them. I plead that they use vehicles with lower emissions.

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)
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I will try not to be as funny as my two colleagues about the Greens. It is amazing to see what I term the "Al Gorification" of Fianna Fáil by the Green Party. It is difficult to know who is the greenest, the republican green or the environmental green of the Minister for the Environment, Heritage and Local Government, Deputy Gormley.

When I came into the Chamber, Deputy Fleming was castigating Fine Gael's position on taxation, a point I will touch on briefly. Fine Gael brought down the corporation tax rate. There was no more positive action taken to drive this economy forward than the lowering of corporation tax. Lower corporation tax allows companies to come in, manufacture goods and sell them on, bringing in new money. The Government will have to wrestle with this in future because not alone are we now losing jobs to Third World countries, but we are losing them to north Wales and places of that nature.

The new CO2 taxation mechanisms for road taxation is another way to charge more in tax. It will bring in an extra €83 million in 2008, but I am sure the numbers will not stop there for 2009, 2010 and onwards. There are anomalies, with the main example being the collapse in the price of a second-hand car after the July date, which will have a catastrophic effect on those buying second-hand cars.

It is likely those cars will be bought by people less capable of buying new cars with lower emissions. Although the car will be cheaper to buy, they will end up paying more tax year on year. This will become a tax on poorer people. I do not know if the Government has taken this concern into account.

Another issue is the idea that motorists are bad people. The reality is the motorist has no genuine alternative to get around the State in terms of public transport. Outside a few rail lines, the train system is practically non-existent. The best example is the train service from the town I live in, Gorey, to Dublin. The distance is 50 miles but the service takes two and a quarter hours. Seán Kelly in his prime would have got there faster on his racing bike. It is a crazy position and there is no investment in a second line, passing bays or rail signal systems evident across the Continent and the UK.

Deputy Durkan and the Minister spoke about money, with some €992 million going back to the local authorities. County Wexford collected €25 million last year in motor taxation. In 1999, that figure was in the region of £8 million. Factoring in the exchange from punts to euro, we have doubled the amount of money being collected. It is another example of stealth taxes being brought in by the Government.

One would not mind the money being raised if it went back to the people in some form. I have another example from County Wexford, which has 1,700 miles of bluetop surface roads. We received in the region of €16.9 million in 2007 in moneys back from the Department from the €25 million collected. Counties with fewer miles of county road than Wexford, in some cases between 25% and 30% fewer, receive the same amount. I would like to see an open transparent system which tells us how much each county receives per mile of blue top county road. Wexford must make the money stretch. The objective used to be that the local authority received money back for every 15 miles but that has been stretched to 20 and in some cases 22 and 23 miles. We need to know how much each county receives per linear mile of county road. When Deputy Roche was Minister for the Environment, Heritage and Local Government County Wicklow received more money in 2007 than Wexford yet it has 20% fewer county roads.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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We needed every penny of it.

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)
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I am sure the county did.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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We spent it well.

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)
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I am sure my colleagues in Wicklow were delighted with that but where is the fairness and transparency?

The Green Party and the Government have not been proactive in supporting a burgeoning industry in bio-fuels. This needs to be examined and supported. There is no point in its charging people for CO2 emissions if it is not prepared to support the production of ethanol and biodiesel.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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I welcome the opportunity to speak on the Motor Vehicle (Duties and Licences) Bill 2008. It is important to remind people responsible for motor vehicles of road safety because of the massive scale of road accidents here every day. Apart from responsible driving there is a role for others involved in transport. There are incidents of bad practice on the part of cyclists who often jump red lights and cause havoc for motorists. We need sensible and radical measures to deal with this because there are too many injuries and deaths on our roads. While I accept the accident rate is higher because there are more vehicles on the roads people must drive responsibly. People cause accidents through speeding and dangerous driving.

There is an onus on car manufacturers to get involved in the debate about CO2 emissions. Progressive people in the industry are considering ways to build new types of environmentally friendly vehicles. They need also to consider noise pollution, and speeding. I have raised this issue many times when discussing vehicles.

On 30 January last I asked the Minister for Justice, Equality and Law Reform to bring in a new law on vehicular manslaughter. The Minister drew my attention to the Law Reform Commission's report on Homicide: Murder and Involuntary Manslaughter and added:

In respect of the criminal offence of manslaughter and related motoring offences the Commission has recommended that the existing road traffic offence of dangerous driving causing death should continue to exist alongside the more serious offence of manslaughter. It would therefore be the case that where there is a very high degree of culpability, a driver responsible for a road death could be prosecuted for manslaughter.

The Commission has also recommended the creation of a new offence of 'careless driving causing death' to deal with fatalities caused by careless motoring. The aspects of the Commission's Report relating to motoring offences are, of course, matters for The Minister for Transport.

I also raised with the Minister of Transport the issue of compulsory testing for alcohol of all drivers involved in road traffic accidents. Following representations received from various bodies, the Minister of State at the Department of Transport, Deputy Seán Power, said that "the Department of Transport proposes to engage with the Office of the Attorney General to establish how the current legislation can be amended to achieve roadside testing of drivers involved in serious collisions subject to overriding medical circumstances". These are sensible ideas and we need to include them in this debate.

The detail of the Bill is set out in the explanatory memorandum. The purpose of the Bill is:

(i) to give a permanent legislative basis for the motor tax increases effective from 1 February 2008 under a Financial Resolution passed by Dáil Eireann on 5 December 2007, and

(ii) to provide for a new motor tax system based on CO2 emissions for new and pre-owned imported cars registered on or after 1 July 2008, as announced in the Minister for the Environment, Heritage and Local Government's Carbon Budget on 6 December 2007. . .

The Financial Resolution passed by Dáil Eireann on 5 December 2007 provided for increases of 9.5% for cars below 2.5 litres and 11% for cars above that threshold. A 9.5% increase also applied to goods and all other vehicles, with no increase for electric vehicles. Trade plate licences also increased by 9.5%.

Motor tax receipts are paid directly into the Local Government Fund which is ringfenced exclusively for local authority purposes. It is estimated that the increases will generate additional revenue of about €83 million in a full year.

Ringfencing is the key word in this paragraph. Other Departments should do this too because we need to face up to this issue. Local authorities have a responsibility to be more actively involved. I will advise my colleagues, particularly people who serve as councillors throughout the country, that it is important for them to make sure that their county and city managers are called to account to ensure that the revenue is spent in a sensible and logical way. The sum of €83 million is a lot of extra money going into the system. The explanatory memorandum continues:

In Minister Gormley's 2008 Carbon Budget, he announced that, for new and pre-owned imported cars registered on or after the 1 July 2008, motor tax would be based on CO2 emissions rather than engine size, and that the new system would be accompanied by an informative labelling system. Existing cars would continue to be taxed on the basis of engine size.

The new system will involve the same seven CO2 bands as the new vehicle registration tax (VRT) system announced in Budget 2008, also to apply from 1 July 2008. Annual motor tax rates range from €100 a year for the greenest cars, to €2,000 for cars with the highest emissions rating.

It is fair and responsible to charge only €100 a year for the greenest cars which help the environment and health. The explanatory memorandum:

Section 3 involves a technical change, reducing the threshold from €114 to €99, above which a person can obtain a 3 or 6 monthly tax disc, to facilitate those paying the lowest rate under the new CO2 system. . .

Section 5 introduces two new definitions, related to the new CO2-based motor tax system, into Part II of the Schedule to the Finance (Excise Duties) (Vehicles) Act 1952. It also provides in that Schedule for revised motor tax rates for vintage/veteran vehicles.

Section 6 provides for increased fees for trade plate licences and replacement trade plate licences in respect of motorcycles and all other vehicles.

Sections 5 and 6 constitute sensible options and should be considered by Members. The memorandum states:

The Schedule sets out the new motor tax rates for all vehicles except the rates for vintage/veteran vehicles, which are provided for in section 5, and the fees for trade plate licences, which are provided for in section 6. Paragraph 6(d), provides for the new CO2 tax classes and associated rates.

The insertion of a new schedule of rates is in keeping with the past practice, so that one can see at a glance the taxation class and relevant tax rate.

These are the details of the legislation and are important parts of it. The key points are the environmental impact it will have and the health and safety issues that are directly involved in this issue. There is a general consensus among all Members of the Oireachtas that they must act on this issue. It is important to make this point both in the legislation and in this debate.

Earlier in the debate, I heard some Members criticise the Green Party. The Green Party is making a contribution to the Government and I welcome its impact in this regard. Its members are bringing forward some policies with which many people agree. I do not accept much of the criticism that is taking place at present. The two Green Party Ministers, Deputies Gormley and Eamon Ryan, are making an effort to do something in respect of their speciality, which I welcome, as do most objective people. I do not accept the criticisms that were made previously. While anyone may make mistakes, the bottom line is that both Ministers are doing their best, often against the odds, and I accept they have some highly sensible policies. There will be strong support for them from all Members of the Oireachtas.

I will revert to the legislation. I refer to the motor tax rates that will apply to new and pre-owned imported cars registered on or after 1 July 2008. They are set out in paragraph 6(d) of the Schedule to the Bill, which will replace Part 1 of the Schedule to the Finance (Excise Duties) (Vehicles) Act 1952. The rates will be graduated as one moves up through the CO2 bands and it is important to consider the bands in detail. As the Minister stated:

For band A, which corresponds to CO2 emissions not exceeding 120 g per km, the motor tax rate will be €100. The rate for band B, which corresponds to CO2 emissions of greater than 120 but not exceeding 140 g per km, will be €150. The rate for band C will be €290, which corresponds to CO2 emissions of greater than 140 but not more than 155 g per km. Band D, which corresponds to CO2 emissions of greater than 155 but not exceeding 170 g per km, will attract a rate of €430. The rate for band E will be €600 . . . Band F, which corresponds to CO2 emissions of greater than 190 and not more than 225 g per km, will attract a rate of €1,000. For the top band, band G, the rate will be €2,000, which reflects CO2 emissions of more than 225 g per km.

These details are important in the context of the legislation. As this debate pertains to vehicles and transport, I will mention again a project that was carried out in my constituency, the Dublin Port tunnel. It was a major project and many Members criticised the manner in which its costs went over budget. However, one should bear in mind that the residents, particularly in Santry, Marino and Drumcondra, were proved right in respect of their concerns. I am glad to note that compensation has been paid to many families in respect of the damage done. The bottom line is that they warned that certain aspects of this project were dangerous and the residents of my constituency were proved to be right. While a number of outstanding cases remain to be settled, I welcome the fact that many families in Dublin North-Central, particularly in Marino, Drumcondra and Santry, have now received their compensation. This is an important matter.

I raised this issue because all angles must be considered when one is engaged with major infrastructural transport problems that deal with trucks, cars and emissions. While cost must be one such angle, public safety and the issue of damage to people's homes was not taken on board at the time.

Another aspect of this debate to which I referred previously concerns the issue of tax. I mentioned the figure of €83 million in respect of this Bill, which to many people is an enormous sum of money. This is money that must be spent. It is taxpayers' money and belongs to people who drive their cars and pay their taxes every day. Many people pay a lot of tax in Ireland and I commend the vast, silent majority who so do. However, as legislators, Members have a responsibility to ensure that everyone pays their tax, which is very important.

This leads to the issue of public spending. Were taxes to be spent on sensible public service projects many people would be highly responsible and supportive. I raise this issue because the issue of tax is germane to the Bill. The important point is that taxpayers' money should be spent on quality public services. Those who work in such services also have a responsibility to ensure they are delivered in a sensible fashion. When I heard the recent criticisms from the Minister for Transport, I agreed with him. People in local authorities who are not doing their jobs in respect of this issue should accept responsibility for not so doing. Members also have responsibility in this regard. Parts of this country that do not have quality roads deserve them as a right. This applies to everyone, particularly in rural Ireland where there are many places in which the roads are not at the same standard as obtains in urban areas. Members who do not necessarily represent rural areas should be highly supportive in this regard because many tragedies take place on such small country roads. I also heard Members' comments on signposting and other aspects of this issue. I mention motor car manufacturers, which have a responsibility to create and design cars that are safe for the public. Members will agree this issue is also linked to this debate.

I agree with the Minister for the Environment, Heritage and Local Government, Deputy John Gormley, when he stated "the clear objective of this new motor tax system is to influence the purchasing decisions of consumers". This is an important objective of the legislation as Members must try to influence the purchasing decisions of consumers. He went on to state "purchasers of cars with low CO2 emissions will be rewarded while a premium will be charged on vehicles with high CO2 emissions". In other words, good practice will be rewarded, which is important. As noted previously, he stated:

. . .from 1 July 2008, anyone buying a new car or importing a pre-owned car can make a choice for the environment by purchasing a low CO2-emitting car and thus enjoy a lower rate of motor tax. . . . Alternatively, if the choice is to purchase a high CO2 emissions car, a higher rate of motor tax will apply.

This also is fair. It is both a contribution to the environmental issues and a major contribution to issues pertaining to health and safety. The latter constitutes a highly important part of the legislation.

I refer to the number of new vehicles that are bought every year. I understand approximately 150,000 people buy new cars every year in this country, which constitutes a huge market. There is an opportunity for the motor industry, garage owners and people to become directly involved in the battle to do something about climate change and the creation of a healthier environment. Everyone has a part to play and this is not simply a matter for Ministers or Oireachtas Members. Many sections of the public are ahead of the posse on this issue and frequently do not object to taking the hit if it will lead to a cleaner and safer environment. Many people can be highly sensible in respect of this issue.

In his contribution, the Minister also referred to the significant role that the local government fund has played in the financing of local government since its establishment in 1999. He stated "total funding for 2008 amounts to . . . €1.6 billion, which represents approximately 30% of local authority current funding requirements". He then referred to the details by stating "The fund comprises two elements — [the] Exchequer contribution of €545 million and the proceeds of motor tax, which are projected to reach €1,080 million for 2008." Members can see that as a massive amount of revenue is involved, this constitutes an opportunity for everyone to do something in this regard. It is important to invest in safe cars of a high quality and to ensure the provision of safe roads of a high quality for our drivers.

One should consider the manner in which the local government fund plays a key role in funding regional and local roads. These roads represent 94% of the country's road network and play an economic role. They also have important and valuable social and community functions. I emphasise the importance of local roads in the development of the economy.

Public transport and its development comprise a very important part of this debate. I welcome some of the progressive measures in the legislation but the reality is that we must do more, particularly in respect of train and bus services, especially on the north side of Dublin. I will continue to push for these services.

I raised the issue of the motor industry. Some have concerns about the legislation and I accept some of them and the fact that they need to be addressed. I have no doubt Deputies will become more involved in this debate. I am not saying I want to block anything but we must have a broader debate.

The objective of this legislation is to reduce carbon dioxide emissions. It represents a beginning and it is progressive. I am concerned about certain aspects of the Bill but it is very important that we all participate in this debate, particularly in respect of road safety, safer vehicles and taxation. I welcome further debates on this important matter.

Debate adjourned.