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

Of course, as I want to make perfectly clear.

In the case of vintage cars, it will not be possible to avoid exemptions from the requirement to pay arrears on some categories of vehicles as the provision of exemptions for one group will inevitably lead to calls for other groups to be recognised. This legislation has been well flagged and there is effectively a four month period in which motorists can put their affairs in order. The proposed changes will be widely publicised in the coming months and this will include notification of the changes to the various elements of the motor trade.

On the question of a longer transition period, a three month transition period is seen as sufficient for status to be rectified. The steps required to make an off-the-road declaration are straightforward. We recognise that the Bill introduces an anti-evasion measure. Until the new system is in place, the existing evasion mechanism cannot be removed. Approximately €4 million per month is being lost to the Exchequer for each month of delay until the new system is in place. Extending the transition period would continue the loss to the State and lengthen the period of annoyance for the vast majority of compliant drivers.

The period of the off-the-road declaration is three to 12 months and modelled on the period for payments of motor tax. At the end of the period of validity of the off-the-road declaration, the vehicle owner will receive a reminder from the national vehicle driver file. The owner must then either renew the motor tax from the date of expiry or the off-the-road declaration. This will be a relatively simple procedure, not free but not excessively costly. It will tie in exactly with the existing system which allows for renewal by post. Providing for off-the-road declarations of indefinite duration could cause its own problems with vehicles reaching end of life. We must adhere to EU requirements on end-of-life vehicles. I refer to Senator Denis Landy's point about existing problems with improper practices in the recycling and destruction of vehicles. These would likely be worse if there was to be provision for an indefinite off-the-road declaration. There may be a number of cases where vehicles kept off the road for many years will be liable for arrears when being taxed in the future. This would not necessarily lead to their destruction, rather than renovation as vintage vehicles. If owners of such vehicles do not wish to pay arrears, they will continue to be able to display them at shows and drive them on private lands. The only restriction will be that they will not be permitted to drive them in a public place.