Terry Brennan (Fine Gael) | Oireachtas source

I welcome the Minister of State. The Motor Vehicles (Duties and Licences) Bill 2015 is required for two main reasons. First, to give full effect to changes to motor tax rates applying to commercial goods vehicles announced in the recent budget and, second, to deal with issues raised in a Court of Appeal judgment which deemed the taxing of articulated vehicles to be without a proper legal basis. The changes announced in the budget apply to all commercial goods vehicles and will reduce the rate of motor tax for approximately 28,000 vehicles in Ireland. The reductions are tapered from a reduction of €4,295 for the heaviest goods vehicle band to a reduction of €43 per annum for vehicles weighing between 4,001 kg and 5,000 kg. The rate structure is also being simplified and will comprise of five bands of motor tax ranging from €92 for electric goods vehicles up to €900 annually for vehicles weighing over 12,000 kg. Have we considered what the tax on driverless cars in future will be? Will we even be around when that happens?

There were no changes to motor tax rates for any other type of vehicle. The changes announced in the budget were given temporary effect by way of a financial resolution on budget night. The resolution would expire after four months if legislation were not introduced. A Court of Appeal judgment on 21 October 2015 in DPP v Perennial Freight questioned the method by which motor tax rates were calculated for articulated vehicles. This has traditionally been done by referencing a combined weight of the tractor, cab and trailer but the court ruled that trailers cannot be regarded as falling within the definition of "mechanically-propelled vehicles". Accordingly, such vehicles now fall to be treated at the haulage tractor rate and the annual rate is €333. As the ruling is that no articulated vehicles fall within the goods vehicle category, these vehicles cannot have the new rates applied to them from January as only rigid trucks can now be taxed as goods vehicles. Amending legislation is required to exclude the vehicles from the haulage tractor category to allow them to be classified under the goods category.

I welcome the news for Irish road hauliers. I live on the Border and I know there are many businesses that have vehicles which traverse it on a daily basis. Those businesses could not compete with their Northern counterparts or hauliers from Great Britain who were coming in and receiving jobs local people could not compete for due to tax reasons. The hauliers campaigned vigorously for many years and the Government listened to them. They are now more competitive with their Northern Ireland compatriots and with Great Britain. All hauliers should welcome the Bill. I encourage the implementation of the legislation as soon as possible.