For the Deputy's information, I received a pre-budget submission from the Society of the Irish Motor Industry and I met representatives of the SIMI who explained their proposals. One of their main proposals was a reduction of 2.5% in the rate of vehicle registration tax on cars that comply with the current EU emissions directives while maintaining the existing rates for cars that are non-compliant with these directives. For example, the rate of VRT for compliant cars up to 1400 cc would be 20% as opposed to 22.5% for non-compliant cars.
Since the 1970s, cars have been required to comply with various EU emissions standards, which are tightening all the time. New or brought in used cars, whether from inside or outside the Community, must comply with the standards pertaining to their year of manufacture. Further increases in standards are scheduled for next year and also for 2005.
All new cars must comply with these requirements. In effect, the SIMI proposed an across the board reduction of 2.5% in the VRT rates for all new cars, despite record sales this year. As used cars brought in are generally older and will not be required to meet the 2000 or the 2005 standards, the SIMI proposal would discriminate in favour of new cars.
The SIMI's proposal was given due consideration, but it was not considered favourably. While the SIMI presented the proposal as an environmental measure, if it had been accepted, the result would have been a reduction in VRT to achieve a standard for emissions that new cars must comply with in any event.
I have no doubt the Deputy is well aware that car sales continue to soar. The figure for total net registrations to end November 1999 is 170,431. That is an increase of 26,424 ahead of last year's full year total. As I said here on numerous occasions, VRT is a valuable source of funding for the Exchequer. Net receipts to end November 1999 are in the region of £593 million.