Vol. 498 No. 4
284 Mr. R. Bruton asked the Minister for Finance if his Department has estimated the impact on employment of the changes in vehicle registration tax in particular in relation to distributors which do not provide any models below 1.6 litres; and if he will make a statement on the matter. [27825/98]
I believe that the overall package of measures announced in my budget, particularly in relation to income tax and corporation tax will help to stimulate growth in employment in all sectors, including that of the motor industry, which has been experiencing considerable growth in car sales.
I would like to inform the Deputy that the VRT figures for 1998 to date show that 57 per cent of new car sales are in the up to 1,400 cc bracket. These sales are not affected by the budget announcement. A further 39 per cent of new car sales are in the 1,401 to 2,000 cc bracket. These face a price rise of 3.3 per cent. Only 4 per cent are in the 2,001 plus cc bracket which face a price rise up to 10.7 per cent. Most manufacturers have models below 1,600 ccs, exceptions being manufacturers of luxury and sports car marques.
I have been informed by the Revenue Commissioners, who have responsibility for the administration of the vehicle registration tax, that the average increase in VRT in respect of 1,600 cc motor cars is in the region of £468 which, given the low rates of interest for borrowers, could not be deemed excessive in the context of the overall price of a new motor car.
I do not see the changes to VRT having the effect on employment which the Deputy seems to fear.
