James Bannon (Fine Gael)

As Minister, he should show a little more courtesy to the House. Hopefully, a message to that effect will be conveyed to him.

I am here to oppose this Bill in the strongest possible terms on behalf of my party and, indeed, the people I represent. The main purpose of the Bill is to give legislative form to the huge increases in motor taxation and trade plate licences which were contained in the budget. The increases represent a further stealth tax to make up for the financial shortfalls which are the direct result of poor management by the Fianna Fáil-Progressive Democrats Government. The Bill provides for another across-the-board tax increase of 5% which comes on top of last year's 12% increase in motor tax and trade plate licences. It adds to the string of stealth taxes and other increases imposed by an uncaring Government since the last general election. As we speak, local authorities around the country are being forced by the Government to introduce development charges ranging from €7,000 to €30,000 to develop infrastructure within their counties. This is fact.

Stealth taxes, including insurance and other levies, are the largest single contributor to high business costs and increased inflation. Increased Government charges of this kind are a key factor in the decisions of many companies to reduce costs by cutting their workforces. We have seen plenty of evidence of this even since Christmas. Companies, including one two weeks ago in my county, have abandoned Ireland due to the high cost of levies imposed by the Government. The massive increases in stealth taxes and charges imposed on industry by the Fianna Fáil-Progressive Democrats Government since the election less than two years ago are making it exceedingly difficult for companies to trade successfully in Ireland.

The Irish vehicle owner pays at least six fixed charges before he or she turns the key in the ignition. According to the representative organisation of European motor manufacturers, Ireland has the second highest vehicle registration tax in Europe after Denmark. From time to time, the Minister of State has had the neck to encourage car owners to use unreliable public transport for traffic and environmental reasons. How can the public be expected to fork out extra money for public transport when they have been expected by the Government to bear an extra motor tax burden of 17% over the past year or so? The implementation of cut after cut by this ruthless Government continues to affect the welfare of citizens. We need only examine what has happened in our health services. Health jobs have been cut, resulting in more people spending their hospital stays on trolleys. There are longer queues at accident and emergency units throughout the country and funding for carers and home helps has been cut — I have plenty evidence of this in my constituency of Longford-Roscommon. VHI charges have been increased by double figures and doctors have been forced to increase fees by this incompetent Government.

Free third level education has, effectively, been scrapped with the increase in college registration fees and other charges. There have been major cuts in funding for schemes designed to tackle educational disadvantage. The FÁS budget is almost eliminated. This afternoon we are debating another increase in taxation through stealth measures on top of the sneaking in last week of additional taxes on credit cards and passports. Where will this stop? Every area, including the most vulnerable, has been hit, with the exception of the betting tax. This is one of the few indirect taxes that the Minister for Finance, Deputy McCreevy, reduced in recent budgets. He gave further tax relief to the fat cats involved in the racehorse industry, many of whom are his friends. This sticks in the throats of the public and hard-pressed taxpayers.

The Bill is a further example of the Government's arrogance. It is a further increase in taxes on motor vehicles from a Government made up of Fianna Fáil and the Progressive Democrats which promised not to increase these taxes in order to encourage more people to use public transport. It has further lost the trust and confidence of the electorate by failing to honour its many promises.

In addition to taxing motorists to the hilt, the Government has dismally failed to provide a good public transport infrastructure. The Luas project is behind time, the Dublin metro system is still a dream, the rail network is one of the most backward in Europe, including the EU applicant nations, the rural bus network is poor and the rural transport initiative for the elderly is being cut by 40%. I have an Adjournment motion on this issue this evening.

There are enormous overruns in the cost of the M4 Kilcock-Enfield-Kinnegad motorway, from €203 million to almost €300 million, a jump from €78 million to €112 million in plans for the Knock-Claremorris road and a doubling of the cost of the Nenagh-Limerick scheme, to name just a few. In certain other areas there have been considerable overruns also. The Government's transport policy is a shambles and money is being wasted with no accountability or justification. Rather than getting our road and rail infrastructure in order, the Minister for Finance, Deputy McCreevy, the Minister for the Environment, Heritage and Local Government, Deputy Cullen, and the Government are preparing to introduce a carbon tax to raise a further €500 million annually to squander or to prop up the Government's mismanagement and incompetence.

I warn the public to be aware of this mistrustful Government on the carbon tax issue. We in Fine Gael have called on the Government to bring forward guidelines and a Green Paper on the issue, but little has happened to date. Due to this new stealth tax Bill, motorists with one litre cars will have their motor tax increased to €151, while those with 1.4 litre cars will be charged €292 per year with corresponding increases for larger cars — so much for encouraging people to use smaller cars and cut down on energy use. Those are unfair increases for citizens who have had to put up with at least 30 tax increases in other areas and bear the brunt of savage cutbacks in areas such as health, education, housing, social welfare, agriculture, FÁS schemes, youth schemes and so on. I could go on until teatime if time permitted. All of this has happened since the last general election.

The private sector does not have the public interest in mind when it gets involved in infrastructural public private partnerships. I realise they are in the business to make money. If I was in that area of business, I would have the same attitude.