Seán Haughey (Dublin North Central, Fianna Fail)
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Question 188: To ask the Minister for Finance if he will consider cutting motor taxation on cars, VRT and taxes on motor fuels, in view of the high cost of motoring here; if money collected from these sources is used to improve conditions for motorists; if motoring costs are higher here than in other EU countries; and if he will make a statement on the matter. [9243/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Any changes in taxation are considered in the context of the annual budgetary process. I did not increase VRT, VAT or excise rates on petrol or diesel in the budget for 2005. Motor tax is under the remit of the Minister for the Environment, Heritage and Local Government.

In respect of comparisons with other EU countries, taxation is a matter for individual member States. For example, while the UK has no VRT in, the level of excise on petrol and diesel is significantly higher than Ireland; in an EU context, at least ten member states have a vehicle registration tax. The Government has prioritised tax reductions on income earned by employees over other areas and this policy has helped create record employment levels. While the Exchequer benefits generally from revenues generated by the motor sector, the motorist has also benefited from the substantial investment in the roads network in recent years through the national development plan. In 2004, spending on national and non-national roads totalled more than €1.65 billion. This is set to increase to approximately €1.8 billion this year. Since 1997 the Government has spent more than €8.8 billion on roads.