Paul Gogarty (Dublin Mid West, Green Party)
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Question 396: To ask the Minister for the Environment, Heritage and Local Government his plans to review the system whereby full year payment of motor tax ensures a discount versus quarterly and half yearly methods in view of the growing financial pressures faced by individuals and families who may find it hard to pay motor tax all at once; if he has costed the savings in staffing and printing that accrue by making staggered payments dearer; his views on reducing the differential to cover administration costs only; if he will examine new methods such as direct debit payments which would allow for a monthly payment, plus processing costs, which could ideally work out at an annual rate cheaper than the cumulative half yearly or quarterly rate; and if he will make a statement on the matter. [35473/09]

John Gormley (Dublin South East, Green Party)
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The surcharge on non-annual discs was designed to cover the higher administrative costs involved. Current surcharge levels are lower than the maximum permitted under motor tax law, and were slightly reduced in 2001.

My Department is currently examining the legislation governing the operation of the motor tax system with a view to ensuring that the system can operate as efficiently and effectively as possible, and to allow for flexibility in updating administrative practices where appropriate. Issues such as payment by instalment could be examined in this context. However, regard would have to be had to any increased administrative and financial controls/costs, bank charges, uncertainty as to payment of motor tax and subsequent problems for enforcement of non-payment and retrieval of motor tax discs. In addition, changes of vehicle ownership, around 1 million annually, undertaken during an instalment period could also present major problems.