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Dáil Éireann debate -
Thursday, 25 Mar 1982

Vol. 333 No. 4

Financial Resolution No. 5: Excise Duties on Mechanically Propelled Vehicles.

I move:

(1) That in this Resolution "the Act" means the Finance (Excise Duties) (Vehicles) Act, 1952 (No. 24 of 1952).

(2) That section 1 (2) (b) of the Act shall, as respects licences under section 1 of the Act for periods beginning on or after the 1st day of May, 1982, be amended by the substitution of "£30 or less" for "twenty pounds or less" (inserted by the Finance Act, 1981 (No. 16 of 1981)).

(3) That the Act shall, as respects licences under section 1 of the Act taken out for periods beginning on or after the 1st day of May, 1982, be amended by the substitution in paragraph 1 of Part I of the Schedule thereto of "£4", "£10", "£16", "£24", "£30", "£5", "£25", "£19", and "£6" for "£2", "£5", "£8", "£12", "£15", "£2.50", "£12.50", "£9.50" and "£3", respectively.

(4) (a) That, subject to subparagraphs (b) and (c) of this paragraph, the Act shall, as respects licences under section 1 of the Act taken out for periods beginning on or after the 1st day of May, 1982, be amended by the substitution in Part I of the Schedule thereto (as amended by section 8 of the Finance (No. 2) Act, 1981, (No. 28 of 1981)) of the following subparagraph for subparagraph (d) of paragraph 6:

"(d) other vehicles to which this paragraph applies—

not exceeding 8 horse-power

£5 for each unit or part of a unit of horse-power

exceeding 8 horse-power and not exceeding 12 horse-power

£7 for each unit or part of a unit of horse-power

exceeding 12 horse-power and not exceeding 16 horse-power

£8 for each unit or part of a unit of horse-power

exceeding 16 horse-power and not exceeding 20 horse-power

£10 for each unit or part of a unit of horse-power

exceeding 20 horse-power

£11 for each unit or part of a unit of horse-power

electrically propelled

£30”.

(b) That subparagraph (a) of this paragraph shall not have effect in relation to any vehicle—

(i) which is used as a small public service vehicle within the meaning of the Road Traffic Act, 1961 (No. 24 of 1961), and for no other purpose,

(ii) which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the said Road Traffic Act, 1961, or for purpose incidental to such user and for no other purpose, or

(iii) which is used as a hearse and for no other purpose.

(c) That subparagraph (a) of this paragraph shall not have effect in relation to vehicles specified in Article 3 of the Imposition of Duties (No. 170) (Excise Duties) (Vehicles) Order, 1968 (S.I. No. 68 of 1968), as amended by the Imposition of Duties (No. 216) (Excise Duties) (Vehicles) Order, 1975 (S.I. No. 5 of 1975).

(5) That the Act shall, as respects licences under section 1 of the Act taken out for periods beginning on or after the 1st day of May, 1982, in respect of a vehicle—

(a) which is used as a small public service vehicle within the meaning of the Road Traffic Act, 1961, and for no other purpose, or

(b) which is fitted with a taximeter and is lawfully used as a street service vehicle within the meaning of the said Road Traffic Act, 1961, or for purpose incidental to such user and for no other purpose,

be amended by the substitution in Part I of the Schedule thereto of the following subparagraph for subparagraph (d) of paragraph 6:

"(d) other vehicles to which this paragraph applies—

not exceeding 8 horse-power

£24

exceeding 8 horse-power but not exceeding 9 horse-power

£27

exceeding 9 horse-power but not exceeding 10 horse-power

£30

exceeding 10 horse-power but not exceeding 11 horse power

£33

exceeding 11 horse-power but not exceeding 12 horse-power

£36

exceeding 12 horse-power but not exceeding 13 horse-power

£39

exceeding 13 horse-power but not exceeding 14 horse-power

£42

exceeding 14 horse-power but not exceeding 15 horse-power

£45

exceeding 15 horse-power £50”.

(6) It is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the Provisional Collection of Taxes Act, 1927 (No. 7 of 1927).

This resolution provides for, first, increases in the road tax on private cars of £1 per unit of horse power for cars not exceeding 8 horse power, £2 per unit of horse power on the present rates for cars in the range 9 to 20 horse power and £3 per unit of horse power for cars exceeding 20 horse power; secondly, the doubling of the rates of road tax on motor cycles; thirdly, increases in the maximum rates of road tax for taxis and hackneys from £16.50 and £30 respectively to £30 and £50 respectively, with corresponding changes in the other rates for these vehicles; an increase from £20 to £30 on the limit below which annual licences only can be taken out. These changes are to apply in respect of licence tax discs taken out in respect of periods commencing on or after 1 May next. The extra yield, as I have already said, from these measures is estimated at £10.5 million in 1982 and £15.9 million in a full year.

I am not sure I heard the Minister correctly. Is he actually proposing to the House an increase in road tax, because my recollection is that his party, at an election in which he himself was returned, advocated the removal of all road tax.

I indicated earlier that the purpose of discussion on Financial Resolutions is to elicit information and to debate the resolutions before us. If something is proposed in the resolution, then the Deputy may take it as such and we do not need any explanations beyond that.

The Chair has spoken for longer in putting me right than I spoke before the Chair felt obliged to correct me.

That might not be any harm.

I want to elicit this information. May we take it that the Fianna Fáil Party represented here tonight by Deputy MacSharry no longer believe in the abolition of road tax and that they are now willing to admit having turned their back on the promise that was signalled by natty little pseudo tax discs that were used as election literature in 1977 saying, "After 1 August no road tax". I have no doubt that in the barns and out-houses of rural Ireland there are still clapped out Cortinas and Escorts, with chickens roosting in the dashboard and mushrooms growing in the clutch, and on the windscreens of the cars those discs may still be seen. May we take it that those promises will not now be kept? These were the years of the philosophers——

Will the Deputy please resume his seat? Will he please accept that his comments are not relevant to or in order with what is before the House. I ask him to reserve those remarks for a future occasion when they may be relevant and appropriate and allow us to proceed with the business before us.

I am here long enough to know that the debate on resolutions on budget night is necessarily compressed and that it tends to concentrate on simple fiscal facts. However, it would be wrong of me and a dereliction of duty to let this sacred moment pass and allow the brute political facts of the matter to be covered up by a smokescreen of solemnity——

Will the Deputy please resume his seat?

You are jumping up faster than I am. I am not being disorderly.

I am the judge of the Deputy's behaviour and he must accept that. I am telling the Deputy he is being disorderly and if he continues I will take appropriate action. As long as he knows that, I am quite happy. I ask the Deputy to proceed and to debate the matter before the House in an orderly and relevant way.

With the greatest respect, there is no need for the Chair to adopt that tone. I have been on my feet, with interruptions, for about three minutes. Surely the solemnity which I know Members opposite feel must attach to all activities of their party, even when it goes to the point of covering up the truth, should not extend so far as to inhibit me from drawing the attention of the House to the fact that Resolution No. 5 represents a disgraceful and scandalous reversal of a policy that was presented less than five years ago. Deputy O'Donoghue went on radio and television——

We are now being presented with this reversal——

(Interruptions.)

Can the House have an assurance from the Minister that the increased duties will not affect cars for invalids?

Cars that are especially adapted for invalids are exempt.

Where is that exemption set out?

Section 43 of the 1968 Finance Act.

Will the increases in road tax be used to bring the county roads system up to a reasonable standard?

There is extra provision for road works. I hope that when the various local authorities are notified the representatives will make sure the money is spent for purposes they would like rather than on some schemes that might cost much more and that might not give the same benefit to many people. I am sure most councillors will do that in the local authorities.

Question put and agreed to.
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