Michael Kitt (Fianna Fail)

I welcome the Minister of State to the House and thank him for his explanation of the Bill. The primary purpose of the Bill is to give a legislative basis to the increases in motor tax rates and trade plate licences set out in a financial resolution passed by the Dáil in November 2003. Provision has been made for an increase of 5% across the board. I was pleased to hear the Minister of State repeat what he said on a previous occasion about the local government fund established in January 1999, that all motor tax receipts, including driver licence receipts, are paid into the fund. The fund is supplemented by an Exchequer contribution. It is worth emphasising that the money is ring-fenced exclusively for local authorities and is distributed to them as discretionary grants for day to day spending requirements and grants in respect of expenditure on non-national roads. The Minister of State even told the House it was lodged in a local bank near the Customs House. That was news to me.