Pat Gallagher (Donegal South West, Fianna Fail)

I appreciate the points the Senator makes. Everyone can face financial pressure and I readily accept that motor taxation is expensive for young people. More importantly, however, their insurance costs are much too high, a problem I hope will be rectified by the steps being taken by the Tánaiste and Minister for Enterprise, Trade and Employment.

The annual rate of motor taxation for cars in the 1,300 cc to 1,400 cc range is €278. The quarterly old rate was €70. This year the new quarterly rate will be €78, a minimal increase of €8, which is both reasonable and fair. If the large number of people who tax their cars on an annual basis decided to do so on a quarterly basis, it would create a phenomenal amount of additional expense and reduce the moneys available to the local government fund and the roads fund.