Pat Gallagher (Donegal South West, Fianna Fail)

I very much appreciate the issues raised by all Senators who are totally realistic about motor tax. Taxes must be paid, even if we do not agree with them. If they are levied, everybody should pay them. A greater burden is placed on those who pay by those who are not tax compliant.

The last survey of compliance with motor tax and motor insurance law and national car testing schemes was carried out in June 2001. The survey highlighted that, typically, approximately 4.6% of vehicle owners persistently evade motor tax compared to 2.8% in the previous survey five years earlier. This represented a loss of approximately €30 million in motor tax receipts in 2003. This loss will increase by 5%, or €1.5 million, this year if the same evasion rate pertains.

The British motor tax evasion rate is 4.5% according to a survey carried out in 2002. Enforcement and prosecution for non-payment of motor tax is a matter for the Garda and details of the number of prosecutions are provided annually in the Garda Commissioner's report on crime. Under powers to tackle motor tax evasion introduced in April 1995, the Garda may impound vehicles in respect of which motor tax has not been paid for a continuous period of three months or more. Following the publication of the nationwide survey of compliance with motor tax, the Garda Commissioner undertook to implement a number of measures such as the revision of existing enforcement initiatives and also the drawing up of comprehensive regional enforcement plans. The Commissioner has been requested to ensure the Garda policing plan maintains and expands on this enforcement action to vigorously pursue evasion.

The evasion of motor tax is an offence and the funds raised through the tax are important to the development of a safe, good quality, non-national road network. As a result of the enactment of the legislation, an additional €34 million will be generated.

Another €30 million on top of that would go a long way towards achieving the profile we have established for ourselves in the south and east and in the BMW regions. I hope, in the very near future, that officials of my Department who deal with tax will meet with officials from the Garda Commissioner's office to discuss how we can work together to address this issue and to ensure that we achieve the objective of almost 100% compliance. There is a duty on every individual to pay motor tax. We will be anxious to reduce the rate of non-compliance from 4.6% to a much lower rate. I do not think a zero rate is achievable but we will reduce the rate to as near zero as possible.