Seanad debates

Tuesday, 28 May 2013

Non-Use of Motor Vehicles Bill 2013: Second Stage

 

7:05 pm

Photo of Kathryn ReillyKathryn Reilly (Sinn Fein) | Oireachtas source

I welcome the Minister. I will keep my comments brief, as most of what I wanted to say has been covered. Like previous Senators, I welcome the Bill. I share some of the concerns highlighted. Non-payment of tax has been in the news recently, whether by multinational corporations taking advantage of specific loopholes in the tax code or by ordinary citizens taking advantage of loopholes in the current vehicle excise duty code. The net result is the same, as tax revenue is lost and the rest of us lose out. It is estimated that the amount of lost revenue from motor taxation is more than €50 million annually. To put that in perspective, that money would more than fund the roll-out of free GP care to 60,000 people on the long-term illness scheme. An extra €50 million would allow the Government to reverse the cuts to the mobility grants or the cuts to home help hours and home care packages in the budget. That is the human cost of tax evasion and the reason there is never an excuse for any kind of avoidance or evasion. Given the effects of recent budgets, every effort needs to be made to ensure due taxes are paid. Clearly there are significant problems with the current system of registering off-the-road vehicles and there is plenty of evidence that these have been exploited, the outcome of which has been that less money is available for road works, road improvements and road upgrades. The situation is particularly acute on secondary roads. Sometimes it is a case of "spot the road" as one tries to pothole-dodge on certain roads. Any increase in the level of compliance must be welcomed. One of the main areas of concern is that the Bill provides for a registration fee to be prescribed. I am aware the Minister has said he does not plan, at present, to prescribe a fee, but such a provision is unnecessary. I would like an assurance from the Minister that any extra revenue raised due to the changes contained in the Bill will be ring-fenced for local government funding, with a specific focus on road repair and upgrading.

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