Trevor Ó Clochartaigh (Sinn Fein) | Oireachtas source

This section deals with increases to VRT and motor tax. The Minister of State will be aware that the automobile industry is on its knees. Representatives of that industry suggested that VRT and motor tax be decreased but the Government has chosen to increase them. In that context, I ask the Minister of State to indicate what he thinks the knock-on effect of this will be on the motor industry here. That industry was thriving once but we have seen countless garages close across the State in recent times. Car sales have dropped enormously and the Department is in danger of shooting itself in the foot with this one. An increase in VRT could reduce car sales even further and therefore negate any potential extra income that might have been generated for the State, not to mention the potential for further job losses in the motor industry.