Seanad debates

Wednesday, 17 December 2008

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

 

1:00 pm

Photo of John Paul PhelanJohn Paul Phelan (Fine Gael)

I share Senator Burke's view on local charges and concur with his comments on the need to have national car test certificates stand for two years from the date on which the test takes place.

On the ongoing anomalies surrounding the removal of the M50 toll plaza, virtually every Member of the Oireachtas will have received representations from people who claim to have been charged in error for using the M50. I have been contacted by people who maintain they were not even in Dublin when they supposedly passed through the M50 camera system. The new system is experiencing many teething problems, including with its payment mechanisms. I ask the Minister of State to comment.

Most speakers referred to the rail network. I sometimes travel to Dublin from either Waterford or Thomastown rail station. Unfortunately, it takes as long to travel to Dublin from Kilkenny and Waterford by rail as by car, which means there is little incentive to travel by rail. If the service was improved, I and others would use rail more often. Senator Coffey is correct that people must regularly stand for the entire journey between Dublin and Waterford, which is not acceptable in this day and age. I have received a number of representations on this issue.

Previous speakers referred to rail freight. We have seen a shocking decline in rail freight and Iarnród Éireann seems determined to get rid of it completely at a time when we should be encouraging more businesses to transport their goods by rail and remove such traffic from our road network.

The ban on heavy goods vehicles in Dublin city centre has worked quite well and we should encourage more transport of heavy goods by rail. I, like others, thought that when the Green Party entered Government that might be a priority but, like a number of issues, it has disappeared from the agenda.

I concur with Senator O'Toole's comment on the 10% target for electric cars. Senator Boyle said Opposition parties made the case for the tax being on fuel. Senator Norris, not Opposition parties, made the case.

Senator Boyle made an interesting contribution on the funding of local government. My problem with the motor taxation system as it currently exists is that it is the major mechanism by which central government funds local government through the local government fund. In the recent budget that funding was cut by 8% or 9% and this will have a serious knock-on effect on the services provided by local government.

Senator Boyle also made the point, and it is the first time I have heard it articulated so perhaps the Minister of State will be able to explain it further because while it is not directly related to motor taxation, I would like to know the Government's policy on it, that the tax on second properties announced in the budget would be used as a mechanism in the future to fund local government. He said that loudly and clearly and that he wanted it to be underpinned by rateable valuation. In other words, he wanted a reintroduction of rates, on this occasion on second homes, and this would be used to fund local government in the future.

Is that the Government's position or was he just flying a kite? It is not something I have heard spoken about in this House or the other House by any Government representative until this point. Perhaps the Minister of State is in a position to respond. Rates were suspended but not abolished in 1977, and perhaps this is a reintroduction of rates to fund local government.

I wish to make a number of other points. Senator Coffey was correct when he spoke about the manner in which this scheme is being introduced, in the absence of significant improvements in our public transport infrastructure. We have seen significant investment in roads, which is to be welcomed. Inter-urban routes have been significantly improved. The worst national primary route in Ireland, the N9 between Waterford and Kilkenny, is in my own area. I welcome the fact that the new motorway will be opened some time next year. It should have happened a long time ago.

The return the taxpayer sees for their motor taxation in local road improvements is not commensurate with the increases seen in taxation over recent years. I am thinking in particular of non-national roads. One example in my own area is the regional road between New Ross and Kilkenny, which passes through Thomastown where I have my constituency office. It is one of the worst traffic blackspots in the country and has not been bypassed. The provision of the new motorway between Waterford and Dublin will alleviate some of the traffic difficulties in Thomastown, but there is a significant problem with the regional road because it links from Rosslare across the country. Many heavy goods vehicles and tourist traffic use that road.

There are now serious questions on the funding of the bypass and relief road for Thomastown which has been on the agenda since before I was born. A number of years ago we were promised it would happen. We saw a detailed drawing on a map but I do not know if it will happen. I hope there is enough money left in the kitty to ensure it does happen. It is a necessary significant improvement needed in the future.

I have covered all the issues I wish to raise. The problem with this Bill is that it emphasises again the Government's reliance on motor taxation as a method of funding local government. Alternatives were mentioned by previous speakers, but we need a broader discussion in the future on the funding of the local authority network throughout the country. I do not think this change in motor taxation is a step in the right direction.

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