Brian O'Shea (Waterford, Labour)
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Question 222: To ask the Minister for Finance the action he proposes to take regarding vehicle registration (details supplied); and if he will make a statement on the matter. [35912/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that on the introduction of vehicle registration tax (VRT) on 1 January 1993, there was a requirement for all vehicles to be presented for examination prior to registration. However, by the early years of this decade, the Revenue Commissioners had adopted a risk-based approach to the registration of vehicles, thus eliminating the need for all vehicles, save those that posed a serious risk of loss to the Exchequer, to be examined prior to registration. While this risk-based approach proved satisfactory to protect the VRT yield, it meant that a significant number of the used vehicles entering the State were being registered in the State without prior examination.

The Deputy will be aware that Revenue, as the registration authority for the State, also has a responsibility to ensure that all vehicles presented for registration are registered correctly. This responsibility became more onerous with the transposition into Irish law in March 2009 of EU Directive 2007/46/EC, which laid down minimum European vehicle standards as a pre-condition for registration. While the Directive impacts only on new passenger cars at present, its scope will be extended to all vehicles by 2014. Additionally, other EU Directives will extend obligations on the registration authorities of all Member States to examine all vehicles prior to registration.

In addition to the EU vehicle inspection requirements mentioned above, concerns were raised by members of the Oireachtas, An Garda Síochána and the Road Safety Authority regarding the provenance and safety of some of the used vehicles presented for registration. To address these concerns, the Government decided to make legislative provision to allow for the appointment of a competent person to carry out a pre-registration examination on all vehicles presented for registration. The intention of the relevant law was to ensure that all the conditions necessary for the registration of a vehicle and the proper administration of VRT are complied with before a vehicle may be registered in the State.

Thus, section 131 of the Finance Act 1992 (as amended by section 104 of the Finance Act 2010) provided for the appointment of a "competent person" to carry out certain functions relating to the registration of vehicles in the State on behalf of the Revenue Commissioners, while section 109 of the Finance Act 2010 provided for the authorisation of such competent person in respect of the collection and payment of the tax to the Revenue Commissioners.

The requirement to have all used vehicles presented for pre-registration examination has presented some new challenges for both Revenue and the competent person appointed to carry out these functions, namely, the NCTS. In consultation with other stakeholders, e.g. the Society of the Irish Motor Industry (SIMI), the Farm Tractor & Machinery Trade Association Ltd.(FTMTA), Revenue and the NCTS are facing these challenges and have implemented some revised procedures to speed up the registration process. For example, the NCTS have recently put procedures in place to provide additional capacity in their centres, including extending the opening times in some centres and the configuration of two additional centres for registration purposes in order to address current delays. Revenue are examining the possibility of providing electronic facilities for the registration of used vehicles that have been subjected to a pre-registration examination.

Revenue is confident that with the implementation of these and other similar initiatives, an efficient user-friendly service will be available to all persons requiring vehicle registration, notwithstanding the fact that the vehicle will, in all cases as provided for in legislation, have to be presented for examination prior to registration.