Dáil Éireann debate -
Tuesday, 17 Nov 1998

Vol. 496 No. 6

Written Answers - Motor Vehicle Imports.

Jimmy Deenihan

Question:

294 Mr. Deenihan asked the Minister for Finance his views on the fact that, while a very significant number of second-hand cars are imported, virtually no second-hand cars are exported; his views on whether the second-hand car market has been distorted by the high level of vehicle registration tax; and if he will make a statement on the matter. [23705/98]

Minister for Finance (Mr. McCreevy)

I understand from data supplied from the Revenue Commissioners that, to the end of October 1998, the number of second-hand cars registered in the State was 31,708 as compared to 32,328 for the same period last year. The number of such registrations has dropped slightly in recent years. This figure has to be seen against sales of 138,280 new cars to end of October 1998, up from 120,932 for the same period last year.

The data which the Revenue Commissioners have in relation to exports refers to the temporary ZZ registration number which is required where an unregistered car, new or second-hand, is purchased in the State by a person established outside the State and is used temporarily in the State prior to oren route to exportation. The number of such temporary registrations issued up to 30 September 1998 was 18,998 as compared to 8,255 for the same period last year. The growth in the number of ZZ registrations appears to be due to an increase in the export from here to the UK of cars previously registered in Japan. No data is readily to hand of the numbers of cars — new or second-hand — which are driven from the State by motor dealers using their trade plates or are shipped out on car-transporters.

There may be a number of factors which affect the export of second-hand cars from the State as such. These may include the relative range and choice of second-hand cars in the Statevis-à-vis those available in, for example, the United Kingdom, where there is a higher ratio of car ownership as well as higher car fleet ownership. The fact that the UK has had for many years an MOT test may also militate against imports into that country from the State, although, my colleague, the Minister for the Environment and Local Government, will announce shortly the contractor for the operation of car testing here.

VRT is a valuable source of funding to the State. It has brought in nearly £450 million to end October this year. The tax is imposed on first registration in the State. It is not intended as a tax or subsidy for imports or exports of vehicles.