Terry Brennan (Fine Gael) | Oireachtas source

A report to be published next month will propose possible changes to the motor tax regime for the heavy goods and haulage industry. The Irish Road Haulage Association wants the regime to be changed to a pay-as-you-go system similar to those in place in other European countries. Our motor tax rates for HGVs are completely out of kilter with those of our near neighbour and European counterparts. It costs €4,000 per annum to tax a HGV in Ireland, whereas across the Border in Northern Ireland it costs £850, or less than €1,200, per annum. As a result, almost 25% of hauliers have already moved their businesses to Northern Ireland, with an estimated 4,000 registered vehicles in Northern Ireland, Britain, Bulgaria and Belgium. In addition, our international fleet is paying on the double when carrying out international haulage work by having to pay road tax in Ireland and a road user charge elsewhere in Europe, as well as a £10 levy in Britain and Northern Ireland. I am sad to say it is now more financially rewarding for hauliers to base themselves elsewhere. Last January the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, set up an interdepartmental group to assess the implications of introducing a pay-as-you-go road tax system for HGVs. I understand a report from the group is to be published at the end of next month and will outline a number of options to ensure transport costs do not have a negative impact on Irish businesses.