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Dáil Éireann debate -
Thursday, 5 Dec 1991

Vol. 414 No. 2

Written Answers. - Car Hire Charges.

Enda Kenny

Question:

60 Mr. Kenny asked the Minister for Tourism, Transport and Communications if his attention has been drawn to the fact that car hire charges in Ireland are a serious impediment to tourist travel/hire; if he will outline his proposals, if any, to improve the situation; and if he will make a statement on the matter.

Although I have no function in the pricing of car-hire I am fully aware of the concern which has been expressed recently about increases in car hire prices for 1992. These increases have been attributed to a number of factors including insurance costs, VAT, excise duties, and difficulties in disposing of vehicles due to competition from imported second hand cars.

I am also aware that Bord Fáilte have had discussions with car-hire firms as to how increases can be minimised and the number of cars available for hire increases. Recent developments such as this year's reduction in VAT rates and the 1 per cent reduction in the insurance levy will go someway towards alleviating car hire costs.

The Government are committed to maintaining low inflation and downward pressure on taxation levels which in the long run constitutes the best way of keeping our car hire competitive.
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