asked the Minister for Finance if he is aware that the heavy taxation on motor cycles is causing serious problems in the trade with consequent unemployment; and if he will take steps to reduce import duty and/or VAT on motor cycles which now totals 65.3 per cent.
Ceisteanna—Questions. Oral Answers. - Motor Cycle Taxation.
13.
I am aware that the market in motor cycles has been showing signs of decline in recent years. I cannot, however, accept the Deputy's contention that this decline has been due mainly to taxation levels. Other factors, such as changing consumer tastes, awareness of the risks attached to motor cycling and the cost of insurance must also be relevant.
Changes in the rates of import duty and/or VAT are budgetary matters for decision at the appropriate time and I could not indicate at this stage what the budget 1977 may or may not contain. The common customs tariff, which applies to imports from outside the European Communities, is an integral part of the Common Market and Ireland cannot vary unilaterally the rates of duty applicable thereunder.
Is the Minister aware that trade in motor cycles has decreased by 50 per cent in the past two years with consequent unemployment for those who were previously engaged in that business? Is the Minister also aware that at a time when imported fuel is extremely expensive for this country motor cycles are from that point of view a very cheap form of transport and should be encouraged rather than discouraged which seems to be the policy of the Minister?
I am aware from statistics available that over the last five years and possibly for longer there has been a decline in the rate of registration of motor cycles but this is similar to the experience in many countries and is associated with causes other than taxation. The taxation of other mechanically propelled vehicles has also risen but it has not reduced the number of new registrations for motor cars. There has been an increase in the registration of new motor cars while there has been a decline in the motor cycle rate.
Is the Minister aware that the rate of taxation of motor vehicles other than motor cycles is approximately half of the rate applying to motor cycles?
There are variations but the decline in the rate of motor cycle registrations now is not dissimilar to what was occurring before any recent increases in taxation rates on motor cycles.
Is the Minister aware that the trade disputes that statement and say that the major part of the decline has occurred only in the last two years?
I prefer to rely on statistics rather than on objective independent sources.