Kathryn Reilly (Sinn Fein) | Oireachtas source

I welcome the Minister of State to the House. When the Bill was taken in the Lower House, my party colleague, Deputy Dessie Ellis, acknowledged the need to review the system of motor taxation. He outlined a number of alternatives to what is proposed in the Bill. He highlighted that there was a need to review the system and to future proof it by redesigning the motor tax bands to reflect carbon emissions, engine capacity and vehicle value. That, in turn, would make the system more progressive and would place a lesser burden on people because motor tax could be raised in a fairer and more environmentally sustainable way, which the Bill does not provide for, and that is the reason we oppose it.

The Minister is aware that Irish society is heavily dependent on the use of cars, probably more so than our European Union neighbours. That is due, in part, to the failure to invest in a meaningful way in public transport provision which has led to us being reliant on a car to get to the shops, the post office, the Garda Station and to take children to school if one lives outside the catchment area. The failure to properly integrate the existing public transport provision has meant that in those places where the need for public transport is greater, such as Dublin, many people simply do not have the choice of travelling every day journeys by a means other than a car. This issue is particularly acute in some rural areas, especially in my county where regular public transport is not an option for many people and they have to rely on a car. As a result, the increased taxes on a private car will have a disproportionate impact on people and will have a massive impact on hundreds of thousands of struggling families who depend on the car to get to and from work, to take their children to school and go about their daily business. Increases in excise duty mean that people are already paying up to ¤400 more per year on fuel than three years ago. Motorists pay 23% VAT on petrol and diesel, in addition to other taxes and duties. The increase in motor tax for ordinary motorists will make life much harder for people. There is too much of a burden on motorists without targeting fuel inefficiency when we should be moving towards that. Perhaps the Minister will respond to my comments in terms of reviewing and future proofing the motor taxation system and the system he envisages for the future.

The Bill will impact negatively on struggling families and struggling business especially the providers of small goods and services, thus affecting trade and jobs.