Fergus O'Dowd (Louth, Fine Gael)
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Question 128: To ask the Minister for Transport the reason there was a 61% increase in the budget for vehicle and driver licensing expenses; the activities which require the additional funding; and if he will make a statement on the matter. [36314/08]

Noel Dempsey (Meath West, Fianna Fail)
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The allocation is devoted to the support and maintenance of the National Vehicle and Driver File (NVDF), which is critical for the delivery of the national motor tax and driving licensing services involving the collection in excess of €1 billion in 2008. As well as the NVDF technical environment, the allocation also covers other ongoing expenses including, in particular, the online motor tax service and postage charges arising from motor tax and driving licence renewal reminders, vehicle registration certificates and penalty points notices all of which experience substantial year on year increases. The provision for 2009 (€22.534 million) which represents 2% of overall motor tax revenue takes account of arrangements associated with the transfer of the NVDF systems from the Dept of the Environment, Heritage and Local Government to my Department and redresses imbalances between allocations and actual expenditure for a number of years. The 2009 requirement which will continue to be refunded from the Local Government Fund has been agreed with the Dept of the Environment Heritage and Local Government. It represents a 12% increase on the revised expenditure for 2008 (€20.142 million) with the additional allocation being primarily devoted to increases in the expenditure items referred to above due to year on year increases in driver and motor vehicle numbers.