Dáil Éireann debate -
Tuesday, 17 Dec 1996

Vol. 473 No. 1

Written Answers. - Scrappage Scheme.

Mary Wallace

Question:

76 Miss M. Wallace asked the Minister for Finance the steps, if any, he can take to assist a person (details supplied) in County Meath who in good faith took a decision to sell a ten year old car and to qualify for the £1,000 vehicle registration tax repayment based on the scrappage scheme, but who subsequently discovered that although the car was in its tenth year, that the authorities considered that it could not be scrapped until after the date of first registration had passed in the tenth year; the number of cases involved in a similar difficulty; the steps, if any, he can take to allow such cases to be considered as qualifying under the scheme in view of the fact that the cars are registered in 1986 and scrapped in 1996, and are ten year-old cars; and if he will make a statement on the matter. [24365/96]

Minister for Finance (Mr. Quinn)

I am informed by the Revenue Commissioners that it is a legal requirement for repayment of VRT under the scrappage scheme that the scrapped car must have been registered not less than ten years before the date on which it is scrapped. This requirement is well known both to members of the public and to the motor trade.

A car which was first registered on a date in 1986 becomes ten years old on the corresponding date in 1996. The vehicle referred to the Deputy fell short of the ten years age requirements by almost four months. Consequently repayment was refused as the car did not qualify under the scheme.

The applicant appealed this decision under the independent excise appeals procedure which was introduced on 1 January 1996. The outcome was that the original decision to refuse the application was upheld both at the first stage appeal and subsequently following a hearing, by the Appeal Commissioners.

From the outset, the Revenue Commissioners have adopted a common sense approach to the administration of the scheme; however, a change in the existing legislation would be required to allow vehicles of the type referred to by the Deputy to qualify under it. I have no plans to make such a change.

Up to date figures of the number of cases involved in a similar difficulty are not immediately available, but they would be insignificant in terms of the overall number of cars scrapped under the scheme. I will arrange to have the actual figures communicated to the Deputy in due course.