John Gormley (Dublin South East, Green Party)

I thank all Members for their contributions to this debate. As I said at the outset of the deliberations on this legislation and reiterated in the Dáil, the Bill is intended to address a number of issues. The need to expand funding for local governments is the reason behind the increase of 9.5%, and 11% in respect of larger cars. More importantly, it will move motor taxation to aCO2 -based system and bring about a change in behaviour among motorists.

I have been candid about the need to make amendments in the Dáil because of the changes in behaviour which we have already seen. People were waiting until 1 July before purchasing cars, which gave rise to the possibility that they may have decided to further postpone their purchases until next year. That would have resulted in a major decrease in VRT revenue. We addressed those issues in a fair minded manner while retaining the essence of the legislation. We are breaking new ground, so it is essential that we review, and refine where necessary, the new system as we implement it. The need for regular reviews is highlighted by the experience of the United Kingdom, where the initial four CO2 bands will be extended to 13 bands from 1 April 2009. We are on a learning curve and will have to observe carefully how behaviour changes. With the Minister for Finance, I will have to work carefully to prevent any major losses in revenue.

I am grateful to all the Senators who contributed to the debate on this Bill and I wish them a happy and peaceful Easter.