Michael Healy-Rae (Kerry South, Independent)
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Question 159: To ask the Minister for the Environment, Community and Local Government if he will review a matter (details supplied) regarding haulage contractors; and if he will make a statement on the matter. [3083/12]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The current arrangements for charging motor tax on the basis of whole calendar months for periods of three, six or twelve months have applied since the 1960s, and in a more restricted form since the 1950s. These arrangements are intended to provide a stable source of funding to meet the costs of local services while giving reasonable flexibility to those taxing a vehicle. A tax period of three months is already shorter than in many other countries, and motor tax is only one element of the overall costs of staffing, maintaining, running and insuring a vehicle.

The introduction of an option for a monthly tax period would increase the administrative costs and complexity of the motor tax system, including the necessity to issue monthly renewal notices in such cases, and add to administrative costs for hauliers.