James Carroll (Fianna Fail)

Gabhaim buíochas as an seans an ráiteas seo a phlé. Is é mo chéad rún ar an Adjournment.

When the car scrappage scheme was introduced in the budget last December it had the effect of bringing confidence back to the car industry. Confidence is an intangible concept and is of critical importance to consumers in their respective markets and I welcome that it has returned to the motor industry.

The year 2009 was an annus horribilus for the car industry, with sales plummeting, reduced working times for staff and job losses. This year has seen definite improvements for all involved in car dealerships. First, this month the Central Statistics Office released figures that show a 30.5% increase in year on year growth recorded in the motor trade in February 2010. Second, other figures released by the CSO show that 12,379 new cars were licensed in March, a jump of 68.5% from the same month last year. Third, at the end of March some 42,500 new cars were registered in the State, yielding €159 million in VRT for new cars alone with a further €125 million from VAT on new cars. Sales of new cars were up 31% for the first three months of this year.

However, the work to rule by many Revenue staff members who deal with queries and process applications from dealerships in this regard has been a significant issue. I have been in contact with several Ministers and have been contacted by a number of car dealers in recent weeks and this is the reason for my Adjournment matter.

A key point to remember is that the profit car dealers were making on a sale was often equal to or less than the value of the car scrappage scheme allowance of €1,500. A number of dealers with whom I spoke are really feeling the pinch in not having this vital cash flow to assist their businesses.

As I said, confidence is a vital intangible concept and Irish consumers need to release their spending power. Confidence was rocked because of the recession and the ratio of people's savings sky-rocketed towards 8%. With steady national leadership in regard to public finances coupled with businesses reducing their prices we can hope the saved money will begin to be released and pumped through the veins of the private and commercial sector which has been struggling enormously to date.

I understand there has been movement on this matter and look forward to the Minister of State's reply.