Vol. 404 No. 7
11 Mr. Cotter asked the Minister for the Environment if he will give an estimate of the total number of untaxed cars and road vehicles using public roads; and if he will outline the measures he proposes to take to make such evasion more difficult.
In 1987, the Garda Síochána carried out a roadside survey of the insurance and tax status of about 24,000 motor vehicles — equivalent to about 2.5 per cent of the total licensed vehicle fleet. The survey disclosed that between 10 per cent and 14 per cent of vehicles were untaxed, as compared with between 20 per cent and 25 per cent in a 1979 survey. The Garda propose to carry out a further survey this year.
The loss of tax revenue disclosed by the 1987 survey is totally unacceptable and steps are being taken to reduce it substantially.
Commencing next month, my Department's Vehicle Registration Unit will issue final notices to motorists who fail to renew road tax. Secondly, I will be bringing forward legislative proposals to deal with the problem of evasion. In addition, the Garda will continue widespread roadside checks of tax discs, including checks carried out as part of the intensified "drunk driving" campaign.
In 1989, the Garda instituted a total of 146,000 prosecutions for motor tax offences. The Garda and traffic wardens also issued 53,000 "on the spot fine" (£50) notices for non-display of a tax disc in 1989.
Would the Minister not agree that the figures he has just given the House are alarming in that as many as 14 per cent of cars remain untaxed? Will he not agree further that if he was more successful in collecting the road tax his colleague would have been able to announce in the budget a reduction, and not an increase, in that tax? Will the Minister not agree also that if he hired the necessary extra staff in this case as in the driving test case he might make a profit?
I agree with the Deputy that we should make every effort to reduce the number of people who are driving around without tax on their vehicles. The number in that respect has dropped considerably over the years. We are to have a new campaign this year. We are satisfied that we will get a big improvement in that regard and, obviously, bring a great deal of extra revenue to the Exchequer.
Ceist 12.
Have the Minister's Department examined any other mechanism for collecting road tax or changing road tax into a different form of taxation which could be more readily collected? Has any investigation gone on or have comparative studies been done on how other countries collect taxes on road vehicles?
I cannot say offhand if we have considered any alternative method but if the Deputy has something particular in mind I will be happy to hear from him. Certainly we will consider it. We are all at one in this. There is a large amount of money not being collected; we must try to get as much into revenue as we can from this area so we will be pursuing the matter.
Was there any parallel survey of insurance while the Garda were checking the tax discs? Has the Minister any figures in relation to uninsured cars?
To my recollection, on the last survey it was somewhere between 6 per cent and 8 per cent. A survey is currently taking place and we expect the figure might be somewhat below that.
Between 6 per cent and 8 per cent of cars were not insured?
That is according to the last survey.
When was that?
I think it was two or three years ago. Some years before that the figure was as high as 15 per cent. In 1986 the insurance disc formula was brought in and that had a very big impact on reducing the number of uninsured drivers.
Another achievement for Deputy Garrett FitzGerald.
No, another achievement following a recommendation by Deputy Pádraig Flynn as spokesman at the time in 1986.
