Seanad debates

Thursday, 4 March 2004

Motor Vehicle (Duties and Licences) Bill 2004: Committee and Remaining Stages.

 

1:00 pm

Photo of Pat GallagherPat Gallagher (Donegal South West, Fianna Fail)

The Senator will know that a car's cc, not its age, is the basis for taxation. On the principle about which he speaks, section 4 provides for new rates of motor tax for motorcycles and other vintage vehicles over 30 years old. I do not think anyone would describe a 12 year old Jaguar XJ6 as such. With the Senator living in the fast lane, I presume it is possibly 3000 cc. Of course, he cannot identify with many people in Ireland as far as cars are concerned because 60% of the national fleet is made up of cars under 1400 cc. He is among an elite group.

I appreciate the point the Senator makes but I reiterate we are talking about 5% across the board. I do not believe he is complaining about the minor increase of 5% resulting in €34 million in additional funds for the country roads. The Senator will be as familiar with rural Ireland as he is with Dublin and the necessity to maintain record investment. I will bring the case he has made to the attention of the Minister for Finance but, in the meantime, a proposal to assess motor tax on the basis of CO2 emissions is under consideration. However, this cannot be done overnight and we want to be fair and balanced in this regard. For example, the Senator's car or an older car with a 1000 cc engine might generate more emissions than a modern 3000 cc car because of the advances that have been made. We are examining this proposal and there will be further discussions on it.

It is paramount to ensure CO2 emissions are minimised over the next number of years given that national and international obligations must be met in this regard. Motor tax on cars with an engine capacity of more than 1400 cc and more than 3001 cc will increase by €64 per year, which equates to slightly more than €1 per week. Senator Norris is interested in the environment and vintage cars and his motive for making the proposal is more than financial. I will discuss his proposal with the Minister and perhaps we will have further discussions at an appropriate time.

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