Seanad debates

Tuesday, 27 March 2012

Motor Vehicle (Duties and Licences) Bill 2012: Second Stage

 

4:00 am

Photo of Deirdre CluneDeirdre Clune (Fine Gael)

I am glad to have the opportunity to speak on the Bill. As has been said, it is merely an implementation of the financial resolution that was passed by the Dáil last December and today we are providing the legislative facility for it.

Senators have mentioned that the Government is taking money from everywhere. There is at least an €18 billion gap that needs to be bridged and the money must come from somewhere. We all know the financial situation. When the motor tax levy was introduced in 2008, it was said it would be revenue neutral but it did not turn out that way. In 2008 €1.06 billion was generated from receipts but last year and in 2010 the sum was reduced by €50 million. As the Minister has said, this is unsustainable.

It is important to point out that the polluter pays principle is still enshrined in the proposed rates. Therefore, a lower tax will apply to cars with lower CO2 emissions and different engine capacities. This principle must be encouraged. I welcome the fact that the Minister is considering a complete review of motor taxation. That is important. There have been changes in the types of vehicles, but they are all using roads which must be paid for. Hopefully, toll roads pay for themselves and sometimes they pay over and above their cost, but the road system in general must be paid for. Roads in cities such as this are relatively small in terms of mileage and they have many users. However, County Cork has the largest road network in the country-----

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