Enda Kenny (Mayo, Fine Gael)
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I move:

(1) THAT in this Resolution -"Act of 1952" means the Finance (Excise Duties) (Vehicles) Act 1952 (No. 24 of 1952);

"Act of 2013" means the Motor Vehicle (Duties and Licences) Act 2013 (No. 9 of 2013).(2) That as respects licences under section 1 of the Act of 1952 taken out for periods beginning on or after 1 January 2016, the Schedule to the Act of 1952 be amended by substituting the following for paragraph 5 of Part I (amended by section 4 of the Act of 2013) of that Schedule:

“5. Vehicles (including tricycles weighing more than 500 kilograms unladen) constructed or adapted for use and used for the conveyance of goods or burden of any other description in the course of trade or business (including agriculture and the performance by a local or public authority of its functions) and vehicle constructed or adapted for use and used for the conveyance of a machine, workshop, contrivance or implement by or in which goods being conveyed by such vehicles are processed or manufactured while the vehicles are in motion:

(3) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).

Michael McGrath (Cork South Central, Fianna Fail)
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I wish to speak in support of Financial Resolution No. 1. As we know, transportation costs are a key input to the cost base many businesses in Ireland face. As an island nation, there are very significant transportation costs involved in, for example, the export business. Goods received into Ireland by port have to be transported around the country. Many businesses are faced with transportation costs such as vehicle road tax which is out of line with that in our neighbouring jurisdiction. It is welcome that the Government is moving to reduce the rates, simplify the system and, it is hoped, help in some small way to make the position more competitive for those involved in and heavily dependent on the transportation industry.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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As a resident and representative of a constituency that straddles the Border, I am very conscious of the impact of the significant differential between the taxation which applies to heavy goods vehicles north of the Border as against that in my constituency and this jurisdiction. It is critically important that a level playing field is created or as near as such as is achievable. That is very important because the sector in this jurisdiction has taken a significant hit in recent years. A number of companies have either gone out of operation or are on the verge of facing a conclusion of their activities. That is having a knock-on, serious impact on employment across the sector. The move to a more environmentally aware way of deciding the tax payable on any vehicle has long been argued for. It has perhaps been a victim of its own success in terms of newer cars which are contributing less and less - allegedly - to air pollution. At least that is what the manufacturers have claimed until recent times. It is a big area which needs to be addressed more comprehensively than this financial resolution will allow. However, I have no hesitation in saying it is absolutely essential that a more level playing field be created south of the Border for hauliers who have had to face difficult economic circumstances in the continuation of their businesses and their ability to compete with hauliers north of the Border and in Britain. I hope this measure will make a critical difference in ensuring the viability of hauliers here and that they will have the opportunity not only to sustain their current operations but also to expand them into the future. I record my support for the resolution.

Jerry Buttimer (Cork South Central, Fine Gael)
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I welcome this resolution and commend the Minister for Finance, Deputy Michael Noonan, and the Minister for Transport and Sport, Deputy Paschal Donohoe, for the proposed changes. As the Taoiseach rightly said, this measure concerns job creation. It will give many small enterprises such as those in my city of Cork the opportunity to have confidence. It will drive growth and add to job creation, on which the budget has centred. In particular, it will give confidence to those involved in the road haulage industry. As Deputy Caoimhghín Ó Caoláin stated, it will give certainty, in particular in Border counties, and end the anomaly and the fears felt there. It will show in a progressive way that the industry is being recognised and that the Government is supporting the industry in a tangible and meaningful way. We should also acknowledge the Irish Road Haulage Association. We have all met its delegates who have spoken to us and highlighted the importance of the industry at a local level and to the domestic economy. This measure is critical and one I commend.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I, too, welcome the initiative. Transportation costs are key. Living on an island, most of our goods are transported on lorries and so forth. This measure is welcome as it will help to reduce these costs. However, while bringing forward this measure, another Department is bringing forward new proposals for the recycling of tyres. The relevant representative body has been in intense negotiations with the Minister for the Environment, Community and Local Government and his officials on new requirements that will result in a cost in the region of €200 being imposed on hauliers to replace their tyres. While, on the one hand, this is a very welcome development in helping to reduce the costs associated with haulage, on the other, we have the position of the Department of the Environment, Community and Local Government which has locked down in its negotiations with the representative body of the tyre industry. I had the opportunity, with one of the Taoiseach's backbenchers, to meet some of the senior officials before the summer.

Enda Kenny (Mayo, Fine Gael)
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Was it Deputy James Bannon?

Robert Troy (Longford-Westmeath, Fianna Fail)
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No. It was Deputy Patrick O'Donovan from Limerick-----

Enda Kenny (Mayo, Fine Gael)
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An enterprising young man.

Robert Troy (Longford-Westmeath, Fianna Fail)
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-----who was aware of this issue because of representations made by a large employer in that area. Perhaps the Taoiseach is not aware of it. To be fair, I do not expect him to be aware of every development in every Department. However, although this is a very positive measure, it is important, when one Department brings forward positive measures, that another does not bring forward others that will take the money away.

Joe O'Reilly (Cavan-Monaghan, Fine Gael)
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I support the measure as a Deputy from a Border constituency where this is an extraordinarily important matter. In that regard I agree with my constituency colleague, Deputy Ó Caoláin. It is very important for our area. The area no longer has a rail network, so the local hauliers are a critical part of its economic infrastructure. They are substantial employers in their own right, are vital to small business in the area and they do a great job. This measure will make it easier for them to function.

I pay tribute to the hauliers. Some of them are in the House tonight to hear the good news and I have spoken to them outside the Chamber. A number of them are from my constituency. They are extremely happy with the news of this initiative. I am delighted to support it as an exercise in achieving fairness, as well as for the retention of jobs and further job creation. It is a good measure for our area. It is a good news story and a sensible piece of economic engineering that will work for the area.

Seán Fleming (Laois-Offaly, Fianna Fail)
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I support this financial resolution. Most Deputies throughout the country have been contacted in the last couple of months by various companies in the haulage business. I appreciate the fact that they contacted us, ran a good campaign and stated their case very clearly. Some of us were shocked at the anomalies between the North and the South when they told us what they were. That helped, because we cannot know everything about every business unless somebody approaches us about it.

In simple English the rate of motor tax has been reduced for all vehicles over 4,000 kg, which is four tons in my language and the language of many others. There is a new annual rate of €500 for vehicles between four tons and 12 tons and a rate of €900 for vehicles over 12 tons. That will be appreciated. Many haulage companies in Ireland operate on an all-island basis, travelling back and forth to the Six Counties, and across the channel in competition with haulage companies from Northern Ireland. We are all aware of the difficulties many of them experienced at Calais over the summer, and they approached us about that second issue too. They felt people did not appreciate their difficulties.

It is good the Minister has brought forward this measure and I am pleased to support it. It will be well received.

Brendan Griffin (Kerry South, Fine Gael)
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I add my voice in support of this resolution. It is a progressive step in this budget, one of many. I commend the Department of Finance, the Ministers and the Minister for Transport, Tourism and Sport, Deputy Donohoe, for their support on this. It is a pro-business and pro-consumer measure. It will reduce the cost of goods for everybody. When one looks at the figures and sees the huge difference that existed between operators north and south of the Border, it obviously had to be addressed. I am glad the Government has listened, met with the people involved and delivered this measure. The Border counties have been mentioned, but this will benefit business in every corner of the country.

In addition, as the economy recovers, there are many people who previously were not in a position to put a vehicle on the road for 12 months of the year. They operated on a week on and week off basis and did not have full-time work, because they were absolutely hammered with these overheads. This is a major boost to those people. I welcome it as a very progressive step.

Enda Kenny (Mayo, Fine Gael)
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I thank the Deputies for their comments. Clearly, the Irish Road Haulage Association has made this case for a number of years. There was a serious imbalance in terms of competitiveness and many hauliers were inclined to register elsewhere and avail of the cheaper taxes as a consequence.

The Government has listened carefully to the haulage business. That business shifts the vast majority of goods exported from, and imported to, this country. It is a critical element of our economic progress and the economic rise in confidence. From that perspective, it is important that it be understood that the Government has been very much open to business in the interests of business. That is to continue the drive to strengthen our economy and as a consequence to create jobs and have an engine to deal with the social challenges we face.

Deputy Troy raised the issue of tyres. Obviously, that is an issue. Irrespective of how expensive or big the vehicle is, be it a car or lorry, the only point of contact with the road is through the tyres. Clearly, one cannot mess around with them. One must have good tyres. From an environmental perspective, waste tyres can have a devastating impact on emissions depending on what is done with them. I am aware of the industries the Deputy mentioned. The Department of the Environment, Community and Local Government is working on a producer-led scheme to mitigate the waste. The points the Deputy mentioned in respect of the meetings he had are well understood. Obviously there is some work ongoing in that regard.

An interdepartmental committee has been established to address the implications of introducing a pay-as-you-go road tax system for heavy goods vehicles. The group is reviewing the way commercial motor tax is assessed and charged. The work of the group has been expanded to include a review of the existing commercial motor tax regime and consideration of the current system of classifying commercial vehicles for motor tax purposes. The work of the group is ongoing.

This measure will be welcomed by hauliers and truck drivers throughout the country. They will see in it a recognition of the valuable work they do for our economic development and expansion. It is a recognition, in part, of the difficulties and imbalance in competitiveness they faced as well as a recognition of the work they do. I thank the Deputies for their support for the resolution.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I thank the Taoiseach for acknowledging the point I raised, but I am not sure if he is aware that it is causing much concern and worry for the tyre industry. We welcome the resolution brought before the House as it will reduce costs for hauliers. However, while everybody is anxious that tyres are recycled in a proper and appropriate manner, the new monopoly the Department of the Environment, Community and Local Government is forcing through in respect of the recycling of tyres through Repak and WEEE, without going to tender, will result in a considerable increase in the cost of tyres for hauliers. We are giving to the hauliers with one hand, but we are taking it back with the other.

I acknowledge the Taoiseach is taking on board what I said and I hope he will use his good offices to convey to the Department of the Environment, Community and Local Government that it must engage with the two representative bodies to bring about a satisfactory resolution to the stand-off that currently exists.