Seanad debates

Wednesday, 17 December 2008

Motor Vehicle (Duties and Licences) (No. 2) Bill 2008: Second Stage

 

12:00 pm

Photo of Paddy BurkePaddy Burke (Fine Gael)

While I welcome the Minister of State, Deputy Michael Kitt, I am disappointed the Minister is not present to respond to the issues Senators raise. Although I do not welcome the Bill in its entirety, I am pleased to contribute to the debate on it.

It is disingenuous of the Minister of State to argue that motor taxation has increased at a slower rate than inflation over the past eight years. Those who tax their cars do so for the subsequent 12 months rather than the previous eight years. It is disappointing, therefore, that the motor taxation increased this year at a significantly higher rate than inflation, which is relatively low.

Like Senator Brady, I do not propose to dwell on issues raised by previous speakers. Road signage is appalling throughout the country.

I concur with comments made by previous speakers on rail freight. One of Europe's largest Coca Cola manufacturing plants is located in County Mayo which has one of the worst rail freight services in the world. It is difficult to get Iarnród Éireann to take action on the issue of freight. I expected the Minister for the Environment, Heritage and Local Government, Deputy Gormley, to take action on this issue but he has not done so. Rail freight users regard the tracking of freight as an important issue as they want to know how their products will get to Dublin, Waterford or the ports. Action must be taken in this area.

I have a number of difficulties with the operation of the national car test, NCT. Some car owners, through no fault of their own, allow their NCT certificate to lapse. If they do not obtain a statement from the Garda that the car has been off the road for the period since the NCT certificate lapsed, the new certificate will be backdated. The result is that the new NCT may be valid for less than 12 months. NCT certificates should be valid for two years from the date on which the test takes place and should not be backdated for six or 12 months. The current practice puts money in the pockets of the NCT operators.

In some cases, motor traders who put cars parked in their garages through the national car test can only get a certificate for six or 12 months. If a car is off the road or has been bought from a customer, the national car test should stand for two years. It is ridiculous that this is not the case. The current practice would not be allowed in any other country.

The NCT operators appear to have the Government by the short and curlies because cars being imported from Britain must immediately undergo the national car test, despite having the British national car test. I ask the Minister of State to address the issues I have raised.

Maintenance workers, carpenters, bricklayers, builders and unemployed people who own small goods vehicles must pay a higher toll on motorways than the owners of some private cars. In some cases, these vehicles are smaller than cars. This practice must be reviewed as it is not helping business.

The requirement that small goods vehicles go through the NCT every 12 months imposes a major cost on the business community. It is an anti-business measure which imposes costs on transport. What action does the Government propose to take on this issue? I hope the Minister will address the anomalies surrounding the national car test.

The Minister of State referred to an additional sum of €80 million to be provided for specific local government purposes, including the operation of water services and the administration of group water schemes and the vehicle administration unit. Will this funding be distributed to some or all local authorities? On what will it be spent?

The largest tax facing businesses in County Mayo and elsewhere is water and sewerage charges. The sole reason a Fianna Fáil-led Government transferred the power to impose such charges from local authority members to county managers was to ensure such charges increased. The Minister proposes to give additional powers to local authority members when a power which was transferred from local authority members to county managers is being used and abused.

The largest tax on small businesses used to be rates but it has been replaced by water and sewerage charges. The county manager of Mayo County Council is seeking a 6% increase in water and wastewater charges. The current charge, which was zero several years ago, is massive, with some restaurants and bars paying up to €20,000 per annum. The charges are far in excess of local authority rates. It may look good not to increase rates but county managers are seeking unsustainable increases in water and wastewater charges. The Minister must review this matter. I ask the Minister of State to explain on what the €80 million will be spent, specifically in County Mayo.

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