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

We recognise the need for a transition period to allow motorists the time to put their affairs in order.

Senator Sean D. Barrett raised the question of commercial and private users. The arrangements are straightforward and not designed to inconvenience compliant taxpayers. Those who need to take a vehicle off the road will be permitted to do so, but it will be necessary to notify the licensing authority in advance. They will not be required to have documents witnessed at a Garda station, nor will they be asked to provide a reason they wish to keep the vehicle off the road. In due course it will be possible to make a declaration online. A similar system has operated successfully in the United Kingdom for more than a decade and I expect it will operate equally successfully here. This will simplify the management of motor tax affairs for commercial users with variable levels of business. If a person's circumstances change during the period of the off-the-road declaration and he or she wishes to put the vehicle back on the road, this can be done by renewing the motor tax. This will be charged from the start of the then current month, which is the same approach as applied to those renewing motor tax in the month following expiry.

The provision in section 7 for charging an administrative fee provides that vehicles on which an annual tax of less than €119 is payable will be exempt from the administration fee when introduced. The current rate of tax on vintage cars is €57, which is a modest amount considering the car may be kept in a field or garden.

I thank Senator Sean D. Barrett for his point on the Short Title of the Bill. However, the Department has been advised that there is no need to amend the Short Title to include a reference to the amendments made to the Local Government Act 1998. The amendment to that Act is referred to in the Long Title. There is a distinction in function between the Short Title which allows an Act to be referred to in simple form and the Long Title which sets out more fully the purpose and scope of the Act. Legal advice is that the Short Title need not reflect accurately the entire content of an Act and that the Long Title is the preferred means of establishing legislative intent. The Minister is satisfied that the Short Title as laid before the House is adequate for its purpose and that there is no risk of any part of the Bill being successfully challenged on the basis of the wording of the Short Title.

In reply to Senator Denis Landy, it is not the intention to require individuals to produce documentary evidence that a vehicle will not be in use. It is not always the case that such evidence can be produced. For example, some individuals may simply decide that a vehicle will not be used during the summer months and may also choose not to insure it. Equally, vintage vehicles may not be in use while being repaired or refurbished. Furthermore, in the event that a person wishes to place a vehicle off the road for reasons of economy or financial difficulties, it would be very difficult to require him or her to expose his or her circumstances to the State in order to avoid paying a tax for which he or she would no longer be liable by virtue of leaving the vehicle off the road. Any system requiring documentary evidence of intent not to use a vehicle would be administratively very complex and costly. It should also be noted that if documentary proof were required that a vehicle would be off the road, it would not be possible for applicants to make an online declaration of non-use. It is intended to make the switch from the existing system as seamless and as simple as possible.

On the question of the link with the insurance, for a person to provide evidence that the insurance policy has been cancelled or put in abeyance, the risk would arise that a person would be tempted to take a car back on the road and drive without insurance and tax. There are significant associated safety issues with side of the road dealers. For example, one single car could be composed of parts from at least four other cars. These dealers will be required either to pay the motor tax due, as is the case, or else make an off-the-road declaration. A dealer established in the more usual way will be able to treat as stock-in-trade any car on the premises and will be exempt from the provisions of the Bill. The dealer on the side of the road will be liable because the cars are in a public place.

I take the point on the risk associated with high grade forgeries and dodgy discs which are fraudulently produced. A garda who is suspicious of such a vehicle can access information on tax status on the spot by inputting the registration number. I understand some Garda cars have equipment on board which can read vehicle registration plates.

The measures are all to do with roads maintenance. The Ministers, Deputies Phil Hogan and Leo Varadkar, have held discussions on the need for greater flexibility on expenditure allocated to projects. Local authorities already have discretion in the expenditure of certain funds but not all funds. The Minister for Transport, Tourism and Sport, Deputy Leo Varadkar has been in contact with the county managers' association to see what can be done to ensure a basic level of roads maintenance. It would be very helpful if increased funding was available as a result of everyone taxing his or her car.

The Bill provides for the charging of an administration fee through secondary legislation.

The Bill makes no provision for charging a premium over and above the reasonable cost. It cannot be penal; it must be the reasonable cost. If, or when, it is intended to apply the administration fee, we will calculate the actual cost of running the system and it will not be possible to charge more than this amount. I would like to give that assurance. It would not be unreasonable to apply the reasonable cost to those who will benefit from it by avoiding an obligation to pay motor tax or arrears. However, we recognise the importance of ensuring a smooth transition to the new system and it is not proposed to make changes at this stage.