Alan Kelly (Tipperary North, Labour)
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I move: "That the Bill be now read a Second Time".

I am pleased to open the debate in the Dáil on the Motor Vehicles (Duties and Licences) Bill 2015. In light of the importance of the haulage industry to our export-led growth and to ensure Ireland remains competitive, it was announced in the 2016 budget that the rates of commercial motor tax on larger goods vehicles were to be reduced. The main purpose of the Bill is to give legislative effect to those reductions. The reductions, to apply to all goods vehicles with an unladen weight exceeding 4,000 kg, will take effect for vehicle licences taken out with a commencement date of 1 January 2016.

The current structure for goods vehicles has 20 rate bands ranging from the lowest rate for electric vehicles of €92 to €5,195 annually for the heaviest goods vehicles. As well as reducing the rates for all goods vehicles, the rate structure is also being simplified. From January, there will be just five bands of motor tax which will range from the current level of €92 per annum for electric goods vehicles up to a top rate of €900 per annum for all goods vehicles in excess of 12,000 kg. The reductions are tapered, from a reduction of €4,295 for the heaviest goods vehicle band to a reduction of €43 annually for vehicles weighing between 4,001 and 5,000 kg. There are no changes to the lowest two bands, which remain at €333 and €420, respectively.

This change will benefit the owners of some 29,000 goods vehicles. The higher rates that apply in Ireland by comparison to those in the UK, along with the introduction of road user charging in that jurisdiction, have caused a distortion and have led to comparatively higher costs for Irish-based hauliers. The changes provided for in this Bill go some way towards redressing the imbalance. I am sure they will be welcomed by everyone in this House. This is an interim measure, pending the replacement of the current basis of taxation for goods vehicles on unladen weight. This system is out of line with the basis of taxation in other countries. Consideration is being given to replacing it with a fairer system of calculation based on gross design vehicle weight. There are no changes to motor tax rates for any other category of vehicle. The annual cost of all of these reductions is estimated to be €43 million.

The Bill before the House also proposes to make further amendments to existing goods vehicles legislation. On 21 October last, just over a week after the announcement of the budget reductions, a Court of Appeal judgment stated that the practice of weighing an articulated vehicle with the heaviest unladen trailer was not adequately provided for in law and that only the mechanically propelled element of the vehicle, which is commonly referred to as the tractor unit, was liable for motor tax. The judgment further provided that such vehicles, of which there are some 10,600 in the fleet, fall to be taxed under Part I, paragraph (4)(d), of the Schedule to the Finance (Excise Duties) (Vehicles) Act 1952. This is the rate for non-agricultural tractors and is currently set at €333 per annum. Prior to the judgment, Part I, paragraph (5), of the Schedule to the 1952 Act, which contains the rates for goods vehicles, applied. Following receipt of the judgment, the necessary technical adjustments to charge motor tax on such vehicles at the tractor rate of €333 have been made to the national vehicle and driver file. Rigid goods vehicles continue to pay tax at the goods rate and are not affected by the Court of Appeal judgment. The judgment stated that "if it is indeed the view of the Oireachtas that the owners of such tractors should pay an excise duty based on the weight of the trailer being hauled by the tractor, then new legislation will be required to make that intention clear." On that basis, this Bill contains not only provisions to give effect to the rate changes announced in the budget, but also provisions to bring articulated goods vehicles within the scope of paragraph 1(5) of the 1952 Act - the goods category. This is an equitable approach as it means that all goods vehicles, articulated or not, will be treated in the same way for motor tax purposes.

I will turn now to the provisions of this relatively short Bill, which contains six sections. Section 1 sets out the definitions contained in the Bill. Section 2 provides for the new rates for goods vehicles to apply to motor tax discs with a commencement of 1 January 2016 or thereafter. Section 1 of the 1952 Act provides for duties of excise to be charged, levied and paid on mechanically propelled vehicles being used in a public place. Section 3 of this Bill inserts a new subsection into section 1 of the 1952 Act to provide that, in the case of goods vehicles, a mechanically propelled vehicle means the vehicle inclusive of the additions provided for in the Finance (Excise Duties) (Vehicles) (Amendment) Act 1960. The current additions contained in the latter Act are a body, a part, a fitting or a receptacle. Later sections of the Bill will provide for semi-trailers, which are the drawn components of articulated trucks, and trailers to be included as additions. Section 4(1) excludes tractor units from the non-agricultural tractor category and provides, in paragraph 5 of Part I of the Schedule to the 1952 Act, which is the goods category, for the unladen weight of goods vehicles to include the additions provided in the 1960 Act. Section 4(2) provides for the new rates for goods vehicles announced in the budget. Section 4(3) provides for the insertion of relevant definitions in the Schedule to the 1952 Act and deletes a subparagraph that is no longer of relevance. Section 5(1) inserts definitions in section 1 of the 1960 Act that are relevant to amendments being made to that Act. Section 5(2) provides for semi-trailers and trailers to be included as additions in the 1960 Act. Section 5(3) provides for semi-trailers and trailers to be included as additions in the enforcement provisions of the 1960 Act. The final section, section 6, provides for the Short Title.

The purpose of this short Bill is to give permanent legal standing to the motor tax decreases announced in budget 2016, which were discussed on the floor of this House on numerous occasions. The additional amendments are intended to bring articulated goods vehicles back into the category under which they were taxed prior to the Court of Appeal judgment. I commend the Bill to the House.

Barry Cowen (Laois-Offaly, Fianna Fail)
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We recognise that the primary purpose of this Bill is to provide a legislative basis for the reductions in motor tax for heavier goods vehicles, as announced in the budget, which are to take effect from 1 January next. We welcome the decision to decrease the amount of commercial tax paid by hauliers. For a number of years now, road tax for large goods vehicles in Ireland has been too high. It is grossly uncompetitive by comparison with the regime that has applied in Northern Ireland and the rest of the UK since April 2014. It has been causing distortions in the haulage industry and increasing costs across the Irish economy. Members of Fianna Fáil have called on the Minister to address the uncompetitive environment for Irish hauliers.

We note the secondary function of the Bill, which arises from the need for legislative changes on foot of a decision issued by the Court of Appeal in October. The court ruled that a truck's trailer is not a separate taxable unit. We welcome this legislative change, which gives greater precision to the definition of a "truck-trailer". In light of the mistake that was identified by the court ruling, and given that hauliers will experience heavy reductions in their commercial motor tax from 2016, we believe it is appropriate for the Minister to inform tax offices of the Court of Appeal ruling and ensure lower rates are charged for all tax renewals until 1 January next.

We note also that it was said during the course of the budget debate that the measures being introduced in relation to commercial motor tax are temporary ones. That being the case, we would like to know when the Minister anticipates that this regime will eventually be replaced. Is it to be replaced by a regime similar to that in the UK, which is based on the gross design vehicle weight of the vehicle being taxed? What is to be the framework for the new tax regime? I would appreciate it if the Minister would give the House, and by extension the industry, an indication of where he stands on that matter at as early a stage as possible.

It is appropriate to avail of the opportunity presented to us to discuss the whole haulage business during this Second Stage debate by talking about the proposal to impose a tyre tax. As the Minister of State knows, this is a major issue for the haulage and farming sectors.

Alan Kelly (Tipperary North, Labour)
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The Deputy is being speculative.

Barry Cowen (Laois-Offaly, Fianna Fail)
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We believe this proposal will be made in response to the Minister of State's decision, which was difficult to understand, to place a full producer responsibility initiative on waste tyres and thereby give an effective monopoly on waste tyre disposal to Repak. The effect of the introduction of such a convoluted scheme would be to create a very large indirect tyre tax for hauliers, farmers and private motorists. Under the current self-compliance scheme, the cost of disposing of a tyre is €1. This will increase significantly under the Government's proposal to introduce a full producer responsibility initiative for waste tyres, which will cause the cost per tyre to increase by €3 for cars, by €15 for trucks and by €20 for agricultural vehicles. It is most likely that hauliers will have to absorb this increase in costs directly. This will add significantly to the cost of doing business.

We also feel that the proposed scheme will fuel evasion and lead to a surge in black market activity. It will send all buyers of truck and tractor tyres across the Border to Northern Ireland. The costs in the UK mean that if this new tax is introduced, tyre purchasers will be able to save themselves €100 or more on a single set of tyres by crossing the Border. This proposal will give external sellers a huge unfair advantage over domestic sellers. It will lead to massive distortions in the market for tyres. We are sure that this destruction will unfortunately result in job losses in the industry.

Furthermore, the proposed system is not necessary. We believe the review on which it is based rests on shaky evidence. The RPS report contended that there was 50% non-compliance in the industry. This is questionable, however, because we are informed that the reporting group engaged with the retailers in an inadequate manner and made a number of rudimentary mistakes in its report.

While there may be compliance problems with the system in place, these arise from the lack of enforcement of current legislation rather than with the system itself. Monitoring of waste tyres can be improved without giving a market monopoly to any one industry, such as Repak. As opposed to the proposed full PRI system, we propose measures to strengthen the current system while allowing competition among licence collectors, imposing stronger sanctions for non-compliance and introducing mandatory registration to monitor compliance of waste collected. This is a similar type of system to those in place in the UK and Germany and we believe it functions most effectively. While protecting the environment, these proposals would keep hidden taxes on truck tyres at their current levels and would not impose further tax burdens on the sector or on the farming sector and motorists. Having recognised difficulties that arose by virtue of the discrepancy in costs between the UK, Northern Ireland and ourselves, it is very disappointing that the imposition of the tyre tax is fast approaching, doing down any positives that are contained in this Bill from the proposals to reduce the motor tax applying to the industry. I await the Minister's response.

Brian Stanley (Laois-Offaly, Sinn Fein)
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I welcome the opportunity to speak on this Bill, as it deals with an issue on which I have lobbied the Minister for Finance for the past two years, namely, the road tax on HGVs. It is a very important issue. One of the things it shows up is that we are a small island with a population of just under 6.5 million on the north-western fringe of Europe. We are relatively small players, and the haulage industry highlights the fact that we need uniform systems on the island for taxation, excise and other things, because anomalies between the systems that operate in Newry and Dundalk cause huge problems. As we move towards an island economy in the years to come, we will hopefully continue to remove the anomalies and differences from the systems in this State and the Northern statelet.

While some partitionists were jumping up and down about the change in the corporation tax rate in the North to 12.5%, most sensible people can see that the move by the parties in the North, supported by the two Governments, will eventually be good for the economies on both parts of the island. There was a ridiculous situation in which haulage firms were upping sticks to Cardiff and Liverpool, resulting in a loss of jobs, PRSI, PAYE and income tax, as well as road tax. Something had to be done. The haulage industry was put to the pin of its collar. Its companies had to work with very tight margins and under a lot of stress because it is a difficult business to be in. They lobbied hard, and the action by the Government was very decisive. It was the big move that was needed and, on this occasion, it deserves ten out of ten for doing the right thing to protect and enhance the industry. That is not to say there are no improvements that can be made.

I want to highlight an issue relating to the testing of trailers. Trailers are tested on their birthdays, if that makes sense to the Minister. A haulier may have several trailers, and some specialty trailers for certain jobs may be used only occasionally. The problem is that a trailer can be tested but not used. Once it is tested the result should last for a full year, but it does not at the moment. I checked this matter with the haulage industry. The result lasts for a full year in the North and in Britain, so the Department needs to look at it.

I agree with the previous speaker that there is a problem with what the Minister is proposing as regards tyres. It is going to put a huge penalty on the haulage sector, the agriculture sector and the general motor industry. I do not want tyres to be illegally dumped and Sinn Féin does not want to see anything illegally dumped. We want to protect the environment, but the problem is that what is being proposed is a one-size-fits-all solution. It will be a monopoly of sorts, and this is not good. The current system may not be perfect but I believe it can be improved and that mechanisms can be put in place to do that. The fact that similar schemes are operating in other countries in Europe, particularly our closest neighbours, England, Scotland and Wales, gives us an opportunity to improve what is currently in place. I ask the Minister to revisit this issue. It is not just the tyre industry; the haulage industry is also lobbying hard on this. While we cannot accede to the requests of everyone who lobbies us, we have to listen to what they are saying about the practicalities. Where it is shown that a similar system can operate in neighbouring states, we need to look at how we can learn from that to improve our own system. I do not see huge numbers of waste tyres, though there were a lot being disposed of a number of years ago. In recent years, the general waste industry and the motor industry have tightened up a lot and are acting fairly responsibly. That is not to say they cannot make further headway, and I would like to see that done.

One part of this Bill deals with the court judgment of 21 October to the effect that the State had imposed the wrong rate of tax on several classes of vehicle. Because of the original error, somewhere in the region of 4,000 road hauliers will pay a much lower tax rate - as low as €333 for the whole of 2016 - on a large HGV. This leads to the ridiculous situation in which a commercial heavy goods vehicle will be taxed at the same rate as a farm tractor. That makes no sense, but because the error is only being corrected now, some hauliers will be able to pay the lower rate.

Given that the motor vehicle tax is administered through the Department of the Environment, Community and Local Government, it might also be appropriate to raise another issue, namely, the fact that the local property tax has been and is being used to subvent Irish Water. I have raised this on several occasions, as it makes a joke of the claim that the local property tax is devoted to the provision of local services through local authorities, which have seen their budgets slashed. Likewise, the diversion of motor taxation funding into Irish Water makes a mockery of the claim that the tax is intended to pay for road maintenance and other issues connected to transport. This was more or less denied when I first raised it, but it was confirmed at the Committee of Public Accounts in February by the Secretary General of the Department, Mr. John McCarthy. He confirmed that a subvention payment of €439 million was made to Irish Water in 2014 from what is, ironically, still called the Local Government Fund. All revenues from motor tax and local property tax are placed in the Local Government Fund, where they are supposed to be used to support local authorities in maintaining public services, amenities and roads. On top of the money paid to Irish Water to compensate for its absolutely disastrous performance in 2014, a further payment from the Local Government Fund will be made this year.

The Estimates published in February provided for a figure of €399 million for this purpose. Irish Water's record and lack of credibility create a problem regarding revenue from motor tax.

Other issues arise regarding road haulage and the working conditions of drivers, including the hours they work. Many drivers spend long periods away from home and are often faced with long waits at ports and other locations, which can be dangerous. Deputies will be aware of the stress experienced by continental hauliers who use Calais.

The road haulage industry is an important sector given the high level of exports. Good regulatory and monitoring systems must be in place for the industry.

The main thrust of the Bill is to remove the anomaly whereby articulated lorry tractor units are taxed as agricultural vehicles and give effect to the welcome measures provided in the budget to reduce road tax. These reductions will bring the position in this State into line with the position in the Six Counties, which will make the whole country competitive and will be good for everybody.

While I do not have a problem with foreign companies entering the Irish market, in the past decade or thereabouts it has been galling to see foreign firms enter the market with an unfair advantage. For example, haulage firms based in Scotland, England and Wales were picking up loads in the midlands and west. The main thrust of these foreign-based companies was to haul goods from the midlands at the expense of local haulage companies which were unable to compete because of the high rate of taxation and other issues. The measures in the Bill will rectify this problem. They are strongly welcomed by hauliers and drivers. Sinn Féin fully supports the Bill as it is good for exports and industry.

Michael Fitzmaurice (Roscommon-South Leitrim, Independent)
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I commend the Minister on reducing motor tax on heavy goods vehicles. As someone who has been involved with haulage over the years, I have been advocating this change for some time. The current levels of motor tax were crippling for Irish hauliers, especially those involved in trade to the Continent. As the Minister will be aware, trucks must pay £10 per day for using the roads in England, which was costing up to £5,500 for some of the double-drive lorries travelling through England to the Continent. This was a crippling cost.

I welcome the move to reduce the tax rate to €900. Given that the rate in England is £900, Irish hauliers will have a badly needed advantage over British hauliers. I also welcome the decision to apply the tax to the truck and trailer, rather than going down the road of dropping one load and then having to go away on trailers and try to bring something in the back door.

The Minister indicated he was examining various options regarding gross design vehicle weight. He should ensure the system remains simple because it is good for the country as it stands. Many people who would never have contemplated buying a lorry will now do so, which will create employment. I commend the Minister on this measure and the measures introduced on diesel in recent years.

Many Irish companies are transporting abnormal or heavy concrete loads to England. This is a significant export trade for companies involved in the concrete business. The permit system for such transport is excessively complicated. For example, a company transporting a load from Galway to Dublin must obtain seven or eight permits. However, a truck arriving in Holyhead can travel to any part of Britain on one permit that lasts for a week. I ask the Minister to examine this issue with a view to simplifying or centralising the process. Making telephone calls to seven or eight different places to obtain permits creates an incredible amount of work for the companies in question. Many firms in Galway, Westmeath, Dublin and elsewhere are exporting large amounts of concrete, which is good for the country. I ask the Minister to address this issue.

Deputy Stanley raised the issue of the test with regard to trailers, lorries and even vans. The system is currently based on the owner's birthday. If a lorry was parked up for four months or six months, the test would be backdated, which means the certificate may only be valid for four or five months. This is not a great system because some operators may have spare capacity and will not use lorries for a while. I have encountered cases where the vehicle is passed for only one or two months.

Tyre regulations require hauliers to do X, Y and Z. Some countries have established a system whereby tyres are shredded and the by-product mixed with tar and used in road construction. These products create a smoother road surface. We should consider this approach and other alternatives to reduce the burden on people seeking to dispose of tyres. Tyre by-products could be useful in the construction of new roads.

I welcome the Bill. Some people are confused by the current position whereby someone who renewed motor tax on a lorry on 21 or 22 October paid €333 for the full year, whereas someone renewing on 7 or 8 October paid the full whack.

Alan Kelly (Tipperary North, Labour)
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That is the luck of the draw.

Michael Fitzmaurice (Roscommon-South Leitrim, Independent)
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I understand that one cannot win all the time. The issue has caused some confusion, although to be fair to the Minister he has provided clarity on the matter in recent days.

I ask the Minister and the Minister for Transport, Tourism and Sport, Deputy Pascal Donohoe, to examine another issue which came to my attention this evening. Under a new tachograph system for tractors being introduced, someone transporting cattle to a mart more than 30 miles away must have a tachograph fitted. In many areas, farmers must travel more than 30 miles with cattle and they should not need a tachograph to do so. This requirement is the result of an EU regulation introduced in 2006. In the next few days, a farmer will appear in court for transporting straw from County Tipperary to County Mayo, a distance of more than 100 km, without a tachograph. It is permissible to transport sludge or forestry poles around the country without a tachograph. This is an example of the lunacy of EU bureaucracy and legislation that is crippling people.

I ask the Minister to address the issues I have raised to benefit people who are doing simple things as they seek to make a living and provide for their families.

Mattie McGrath (Tipperary South, Independent)
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I welcome the decision taken by the Ministers for the Environment, Community and Local Government and Transport, Tourism and Sport to introduce this badly needed legislation. I salute Verona Murphy, the Irish Road Haulage Association and the Freight Transport Association of Ireland for the lobbying they did on this matter. The Minister for Transport, Tourism and Sport promised to introduce this measure in response to an oral question I asked him and in fairness to him, he kept his word and I salute him for doing so.

The Bill reduces the number of tax rates from 20 to five. I welcome any move to reduce bureaucracy.

Finian McGrath (Dublin North Central, Independent)
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Is the Deputy praising the Minister?

Mattie McGrath (Tipperary South, Independent)
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I will praise him when necessary and build him up to take him down, if that is all right. Whether building a load of bales, blocks or cattle, I give praise where it is due. I acknowledge that this measure was badly needed as hauliers here were facing unfair competition from hauliers in the North.

We have a high level of exports and need hauliers and drivers to transport them. They do an excellent job under difficult conditions. If the cap fits, the Minister should wear it, and he can wear it proudly because this is welcome legislation. However, the cap slides down or falls off on other initiatives, specifically the new measure on the fitting of tachographs.

It is farcical. A fellow Tipperary man bringing a load of bales to Castlebar was pulled in and faces the courts next week. It is ridiculous legislation. Those things will have to change. Are we going to go back to the fair days when we had to hunt the cattle to the marts? Will we have to walk them from Nenagh to Portroe or Clonmel to Cashel with bulls and all on the road? It is pure bureaucracy gone mad from officials. We get rid of some of it here and we bring in more of it. It is pure bananas. Next thing, we will have camels going up and down. We will be hunting camels as well.

I challenge the Minister on the directive relating to waste tyres. It is not about an EU directive. I salute the Acting Chairman, Deputy Robert Troy, who has fought a long battle on this issue. The Minister is responsible for this. He cannot blame bureaucrats in Brussels or an EU directive; this is an Alan Kelly directive, an AK-47 directive, which will put huge pressure on road hauliers, farmers, and even the Minister's officials, who are looking at me over there. Four tyres on their humble cars will add at least €14 or €15. It stinks to high heaven. I have asked a lot of questions and have many more to ask about this. It is a directive that is trying to get rid of the waste collectors in place, who are doing a good job. I do not condone anybody who dumps a tyre illegally, and I salute the tyre dealers in Tipperary who have a proper system and give the tyres to reputable plants. This will wipe out a whole lot of business people, and for what? To give the business to Repak? Another big company. Another big mess. Another big - I will not say what I think it is, but I know the Minister is very close to them, and a lot of people can be close to them. This is very distasteful.

Alan Kelly (Tipperary North, Labour)
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How would I be very close to them?

Mattie McGrath (Tipperary South, Independent)
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We will find out that when we get the answer to the questions. I will not say any more than that.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Allow the Deputy to speak without interruption.

Mattie McGrath (Tipperary South, Independent)
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I am just saying that it is very wrong and makes no sense. We cannot blame Europe or duck behind an EU directive. The Minister has to face the music himself. He might not go down to meet Vincent Browne but he will have to meet the people on the doors and the tyre dealers in Tipperary and Offaly and deal with them.

Alan Kelly (Tipperary North, Labour)
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I have met them.

Mattie McGrath (Tipperary South, Independent)
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He will have to deal with the householders when they feel it after their tyres have gone up by €20 for an ordinary saloon car. A haulier's tyre costs will go up by €100, and for a tractor the cost will increase by €100 per tyre. It is nonsense. I repeat that it is a Minister Kelly directive. He is the boss in the Department of the Environment, Community and Local Government, as he has proclaimed many times. He is the man in charge and the directive is coming from him - through his officials, but directed by him. It is wasteful and it is an attack on small business people in the tyre industry. It is an attack on the ordinary public by driving up the price of tyres. It is an attack on farmers. Are we going to leave cattle at home, so, and have fair days in local villages, as we had a hundred years ago? We cannot have these silly directives. I appeal to An Garda Síochána not to be over-zealous. Taking tractors and trailers off a man with cattle in the mart? What is he going to do? They hired a low loader to take him to a test centre at enormous cost, even though he cannot be tested because there is no test for a tractor and trailer. He could not provide a tachograph printout because there are no tachographs in tractors. I will invite the Minister to come and sit up in my tractor some day - I have a spare seat in it - and he will see there is no place for a tachograph.

Alan Kelly (Tipperary North, Labour)
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I have a tractor myself.

Mattie McGrath (Tipperary South, Independent)
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The Minister is too warm in his State car with his State drivers.

Alan Kelly (Tipperary North, Labour)
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We should compare tractors some time.

Mattie McGrath (Tipperary South, Independent)
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There is no tachograph in a tractor and there never was. I could give the Minister a Christmas card from Santa Claus. This is not Santa Claus. It is more like Satan coming along and persecuting people.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Thank you, Deputy. Now, I wonder whether Deputy Finian McGrath has a tractor.

Alan Kelly (Tipperary North, Labour)
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He is down in north Tipperary often enough to see them.

Finian McGrath (Dublin North Central, Independent)
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It will be very difficult to follow Deputy Mattie McGrath. I am grateful for the opportunity to speak on the Motor Vehicles (Duties and Licences) Bill 2015. I welcome the debate and I broadly welcome the legislation, as it deals with a grave injustice that was done to all those who work in the road haulage industry, a very important cog at the economic heart of this country. Before I go into the details of the legislation, I note that it is a positive and common-sense development, hence my support for the Bill. It fixes a problem that a lot of people agree must be fixed. We must be creative and radical when it comes to the economic development of this country. Jobs must be top of that agenda. The Bill makes a contribution to that aspect of economic recovery. Deputy Michael Fitzmaurice said to me before the debate "What do you know about lorries?". I note to Deputy Fitzmaurice that for eight years I worked as a helper on lorries for Coca-Cola, delivering Coca-Cola up and down the country in Dublin, Cork, Galway and Clare. I know a great deal about lorries and unloading them, shifting stuff at midnight and reloading at 7 a.m. It is a tough job and I know its ins and outs. I commend all those who work in the industry, because they are a very important aspect of our economy.

Ireland is an island country and we depend on exports. Road freight transport plays a very important role in the facilitation of growth in our economy. The quantity of goods transported increased by 3.4% to 112.5 million tonnes and the number of vehicle kilometres travelled by Irish-registered goods vehicles rose by 3.6% to 1.3 billion km. That is a huge movement of goods and a very important thing. The other aspect that is often forgotten about is the huge number of people that work in the industry. The Irish Road Haulage Association, or IRHA, estimates that road haulage employs an estimated 50,000 people, including those in ancillary jobs. That is some figure when one considers the economic aspects of the debate. The Irish road haulage industry is a large contributor to Exchequer finances. The IRHA estimates that it contributes over €1 billion to the general Exchequer each year via fuel duty, road tax, PAYE and PRSI. That is a major contribution to the economy. As such, it is only right that there is cross-party support for the legislation.

The IRHA says it is important that it its member organisations are supported so that they can get on with their jobs. The IRHA has spoken for many years of the disparities between the cost of operating a truck in the south as compared with the North of Ireland, Britain and numerous other EU countries. A 44-tonne articulated truck costs €4,000 to tax in the Republic of Ireland versus €650 North of the Border in Newry. These are the kinds of issues that we have to deal with. That is why it is important that the legislation deals with this issue. The IRHA has also stated that due to ever-increasing costs, Irish international operators are registering - or re-flagging, to use the relevant term - their commercial fleets in European countries where operating costs are far more favourable. For a number of years, the IRHA has been recommending an overhaul of the current Irish road tax regime to bring it into line with the model and costs in the North. That is important. The Bill deals with the deceases in motor tax for heavy goods vehicles announced in budget 2016. These will be implemented on 1 January 2016.

Motorists are often the forgotten people in Irish society. They make a massive contribution to the Exchequer through tax and duty payments. At times, they are not treated with respect. It is very important to acknowledge that in this debate. I welcome the Bill. It is a contribution and something sensible. I will be supporting it.

Alan Kelly (Tipperary North, Labour)
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I thank the Members for their contributions and acknowledge the general welcome for the Bill. Because Deputy Mattie McGrath would not do it, I acknowledge the contribution of the Minister for Finance and the Minister for Transport, Tourism and Sport, who worked very closely with me to deliver the Bill. I acknowledge Deputies across all parties and none who have raised the issue of the anomaly that was there over the last number of years. I acknowledge that it was raised across the political spectrum. The benefits that the Bill will bring for haulage firms are very welcome. I have spoken directly with many of them in my previous role in the Department of Transport, Tourism and Sport and in my current role. I come from a county with a great many haulage firms due to its location in the middle of Ireland. There are many small haulage firms in Tipperary, including those of members of my own extended family. As such, I am aware of the issues that have been affecting people. The potential savings here are very significant and will really help from a competitiveness point of view.

I will address a number of issues. Testing trailers on their birthdays is a matter for the Road Safety Authority, RSA, but I will raise it. I understand the permit and tachograph issues well, as they have been raised with me, but they are for the Department of Transport, Tourism and Sport and the Minister, Deputy Donohoe. However, I will discuss them with him as a result of this debate. There is the potential for some work in that regard.

As to when the gross design vehicle weight provision will come into place, a group led by the Department of Transport, Tourism and Sport is working on this matter with the haulage industry with a view to considering changing the situation from an unladen basis to one of gross design vehicle weight. This will bring us into line with the rest of Europe. However, it means there will be a considerable number of amendments to the primary legislation and technical modifications to the national vehicle and driver file. As such, it is unlikely that this will be in place before January 2018, given the significant amount of work required.

The working group is also considering the feasibility of establishing and operating a road user charging system. Given the technological requirements that would underpin such a system, though, it is a more medium to long-term request than a short-term one. From a technological point of view, it would take a great deal of effort. It would be a little too much overkill at the moment.

I was asked about refunds. Arrangements are being made to refund the owners of more than 700 vehicles who paid the high rate in the days after the Court of Appeal's judgment. That work is ongoing.

There was a considerable amount of commentary on the issue of tyres. While that does not relate to this Bill, I will offer some brief comments and encourage Deputies to submit specific questions. Following the 2007 regulations, the tyre industry was told that, if it did not get its act together, a producer responsibility initiative, PRI, model would be put in place, which will now happen. Analysis done following consultation showed a large volume of non-compliance, a lack of consistent data and that between 25% and 50% of waste tyres were not being accounted for. That waste is the main reason we had to introduce a PRI. There is a range of misconceptions about this matter. The idea that there would be a large monopoly is ridiculous because schemes operating on a similar basis can be found in a number of other jurisdictions. Also, operators in other jurisdictions would bring tyres into the Irish market and distant sellers would have the same obligations as everyone else. The most important claim, namely, that there would be an increase in the cost of a tyre, is a myth. We are regularising what is happening and ensuring that the environmental contribution is used.

I am happy to deal with all of these issues. Deputies should ask whatever questions they want in that regard and we will debate them. That the two associations that were a part of this process are no longer engaging in the ongoing work is not helping the situation. I encourage them to return and try to influence the process instead of staying outside.

I thank the Deputies for their co-operation.

Michael Fitzmaurice (Roscommon-South Leitrim, Independent)
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What about permits?