Written answers

Wednesday, 3 October 2007

8:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 148: To ask the Tánaiste and Minister for Finance if further to Parliamentary Question No. 167 of 26 June 2007, it remains his intention to introduce changes to the current VRT system to take account of environmental issues from a target date of 1 January 2008; the notice period of any changes to VRT rates he proposes to give to members of the public and the motor trade in the context of their purchasing and ordering decisions for new vehicles arriving in 2008; and if he will make a statement on the matter. [22061/07]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 149: To ask the Tánaiste and Minister for Finance if he will continue the current VRT rebate applying to cars that adopt hybrid technology following the expiration of the relief at the end of December 2007; when he will be making clear his intentions in relation to the extension or expiration of the relief; if his attention has been drawn to the potential impact of uncertainty about the availability of the relief on consumers in the context of ordering and purchasing new hybrid vehicles for delivery in 2008; and if he will make a statement on the matter. [22062/07]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 150: To ask the Tánaiste and Minister for Finance why he has not announced details of changes to the current VRT system in the context of his commitments in Budget 2007 and in reply to parliamentary questions, that the new system of VRT rates would apply from 1 January 2008; if his attention has been drawn to the difficulties presented to both the motor trade and purchasers of new cars in the context of 2008 sales arising from the uncertainty about the applicable VRT rates; and if he will make a statement on the matter. [22063/07]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 148 to 150, inclusive, together.

In Budget 2007, I announced that it was planned to introduce changes to the current VRT system to take greater account of environmental issues, and in particular Carbon Dioxide (CO2) emissions, with a target date of 1 January 2008. The Programme for Government re-affirms the commitment to introduce measures to further weight VRT in favour of cars with lower emissions.

A public consultation in this regard has taken place. Work on the matter is ongoing and a range of possible options are being considered. As regards the timing of when the changes in the VRT are implemented, it is desirable that members of the public be given reasonable notice of any changes being introduced. Therefore it is proposed to provide for changes to the VRT system in the 2008 Finance Bill,with an implementation date of around mid 2008.

The appropriate treatment of hybrids and flexible fuel cars will be taken into account in any future changes to the current VRT system. In the meantime, relief for hybrids and flexible fuel cars will continue.

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