Michael Fitzmaurice (Roscommon-Galway, Independent)
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1350. To ask the Minister for Transport, Tourism and Sport the reason he will not allow vehicles to be taxed monthly to help hard pressed families; and if he will make a statement on the matter. [1427/18]

Shane Ross (Dublin Rathdown, Independent)
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Motor tax can currently be paid on a quarterly, half-yearly or annual basis.

On the basis of the current arrangements, the number of motor tax discs issued each year is in the order of some 5m discs.In addition, renewal notices are issued to vehicle owners in the month of expiry of a motor tax disc.The introduction of a facility whereby a motor tax disc can be taken out on a monthly basis would significantly increase the volume of discs and renewals, with a resultant increase in the costs of operating the motor tax system administratively and in terms of financial costs and controls, including bank charges, which are not currently met by vehicle owners.

If a system of payment by direct debit is being proposed, it should be noted such a proposal would require significant additional enforcement provisions to recoup income lost to the taxpayer where there are insufficient funds in personal accounts to meet the payment or where the direct debit option is cancelled after a disc has been issued, as well as provisions to enable recovery of a disc in such circumstances.

I have no plans currently to review the basis for paying motor tax.

Michael Fitzmaurice (Roscommon-Galway, Independent)
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1351. To ask the Minister for Transport, Tourism and Sport the reason his Department will not give the taxing of cars contract to An Post in order that it may help keep small post offices open; and if he will make a statement on the matter. [1428/18]

Shane Ross (Dublin Rathdown, Independent)
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Under existing arrangements, motor tax is payable in person or by post through motor tax offices.  It is also payable online at any time, with the percentage of online usage increasing from 42% of motor tax transactions in 2010 to 72% in 2017.  The shift to online usage is likely to increase further in coming years, with a corresponding reduction in the number of transactions being carried out in motor tax offices.  As such, the provision of additional payment path for motor tax is likely to represent a diminishing financial return over time for any potential payment provider.  

It should be noted that An Post are not the only potential service provider for alternative delivery of motor tax services and that there have been other expressions of interest in this regard.  Accordingly, it would be expected that any outsourcing of service delivery arrangements would have to entail a competitive public procurement process.