Seanad debates

Tuesday, 28 May 2013

Non-Use of Motor Vehicles Bill 2013: Second Stage

 

7:05 pm

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Ba mhaith liom mo bhuíochas a ghabháil le gach duine a ghlac páirt sa díospóireacht seo. I wish to respond to some of the questions, and others can be responded to on Committee and Report Stages, which will be taken later.

The primary purpose of the Bill is to close off evasion. Tax evasion hurts the compliant. Failure to pay tax imposes a greater burden on all those who are compliant. The system which was intended to allow people who genuinely had a vehicle off the road to make a statement in a Garda station has been significantly abused. There were many calls to close this loophole and that is what is being done. I welcome the support of all Senators anseo. The measures are a key first step in addressing the recommendations set out in the Comptroller and Auditor General's report.

It is important to recognise that the action programme for effective local government is designed to strengthen and modernise the local government system. We are seeking to transfer new functions back to local authorities. This is an ongoing process. The most recent instance in this area is the creation of new local employment offices in local authorities. The Minister for the Environment, Community and Local Government, Deputy Phil Hogan, and the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, launched the first local employment office in Fingal last week.

In regard to damaged cars, the possibility of making an off-the-road declaration will apply to a car that is damaged and is being held at a garage for the sale of parts. At some stage, the car will need to be finally disposed of, and the rules in regard to the certificate of destruction will apply. A point was raised about end-of-life vehicles, but there is nothing in Bill that deals with that issue.

The Department has engaged consultants to undertake a review of producer responsibility. The report on the review which will be received in a couple of months is expected to make recommendations in a number of areas, including transparency with regard to end-of-life declarations. The Department of the Environment, Community and Local Government and the Department of Transport, Tourism and Sport are considering options for the measurement of evasion, including the feasibility of sharing data from traffic cameras as a tool for tackling motor tax evasion. The Department of Transport, Tourism and Sport is seeking legal advice on this matter. Traffic cameras are in place to manage road safety issues and have contributed significantly to the reduction in the loss of life and serious injuries. It is important not to impinge on the safety role of traffic cameras, but the deterrent effect on motor tax evasion could be very significant.

Senator Paschal Mooney made a number of points on the declaration of non-use. The declaration must be made in advance and can be made at any time in the month before tax or an existing declaration of non-use expires. There is no change to existing procedures for the renewal of motor tax and the month's grace is not affected by the Bill. I refer to the vintage speech - perhaps that is not the correct word-----

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