James Bannon (Fine Gael)

Apart from the increase in motor tax being an extension of the Government's "we screw up, and you pay" policy, where is the logic? Given environmental considerations and attempts to promote public transport, surely it would have made more sense for the increase to have been put on motor fuel. A fuel tax would ensure the more people drive, the more they would pay. Such an equitable arrangement would have had an offshoot benefit to the environment and provided a strong encouragement to leave the car at home. Why not reward those who try to minimise their annual mileage? As it stands, drivers who will be paying through the nose to tax their cars will certainly not take kindly to being asked to leave them at home and look for a bus.

I ask the Minister of State where is breaking point. Through the charges that the Government is levying, it is the largest single contributor to increased inflation. An increase of 12% at a time when inflation is running at 5% is totally unacceptable. How long can the nation's tolerance, allied to its ability to pay, or lack thereof, maintain the current deficits? Is the motorist easy prey – a pawn in the hands of a Government intent on hitting those least able to react? The 2 million licence holders carry a burden equal to 20% of entire tax income because, in most cases, they have no alternative.

Many motorists have opted for private transport because they are caught in the trap of necessity. For those outside the immediate environs of the city, cars are a necessity, not a luxury. The motorist, who is essentially making up for the lack of adequate public transport, is being penalised because of his or her need. The motorist is not only at the mercy of Government tax. Insurance companies continue to charge exorbitant premiums while petrol companies maximise profits by setting prices regionally.

Budget 2003 saw yet more increases in the tax burden on motorists, already amounting to approximately €4.4 billion. This is now being followed by a 12% increase in motor tax. How much more will motorists accept before the burden becomes a very serious political issue, which, allied with other increases and broken election promises, will soon see them call the Government to account?