John Gormley (Dublin South East, Green Party)

At local motor tax offices there will be a change in the arrangements for the processing of motor tax applications. The national vehicle and driver file, referred to as the NVDF, which is managed centrally by the vehicle registration unit in Shannon, will be adjusted to provide for the application of CO2-based rates. The changes associated with the introduction of CO2-based motor tax charges are quite complex since they involve the creation of an entirely new basis upon which tax may be charged. The estimated cost of the NVDF enhancements is around €250,000. Currently, on first taxing or upon renewable tax, the vehicle owner may attend the local motor tax office or correspond by post or make the application on-line, as the Senator rightly said. We have made those changes and we signalled early on that this was our intention. The adjustments have been made.

The Senator's second question related to cost. The actual cost of a motor tax disc for six months is about 55.5% of the annual rate and for a three-month disc it is 28.25% of the annual rate. This works out at a surcharge of 10% to 11% for a six month disc and 11% to 12.5% for a three-month disc. For a 1.4 litre car, over 50% of the car fleet is below 1400 cc, the extra annual cost is €34 for a six month disc and €40 for a three month disc. The surcharge in the United Kingdom for a six-month disc is about 10%. A three-month disc is not provided for. That is how it is done and it appears to be working effectively. I do not see any real need to change it. It is not for me to decide, it is a matter for Revenue, which is doing it effectively and has complied fully with any requests we made.