James Bannon (Fine Gael)

I second the amendment. The Bill paves the way for the Government to increase taxation for motor vehicles by 12%, way beyond the rate of inflation. The biggest culprit in causing inflation is the Government because most of the charges it has introduced are in excess of 5% or 6% and, thus, not keeping in line with inflation, even though it preaches that we have to stay within the boundaries of inflation. It has the cheek to tell us that the additional funding is for the local authority roads programme but, as Senator Tuffy and others have said, no extra money has been made available for roads. In fact, some €70 million has been taken out of the roads programme causing a huge shortfall.

At least three roads have been dropped from the County Longford five year road development programme due to inadequate funding from the Department. It is anticipated that the increase in motor taxation will bring in approximately €65 million but there will still be a shortfall of around €5 million on the allocations to local authorities for 2003. We are told we will have to make up the shortfall of €70 million by increased motor taxation but the allocation for county roads has decreased considerably.