Dáil Éireann debate -
Wednesday, 21 Feb 2001

Vol. 531 No. 1

Written Answers. - Vehicle Registration.

Cecilia Keaveney

Question:

84 Cecilia Keaveney asked the Minister for Finance his plans to review the situation whereby people employed in Northern Ireland but living here are not allowed to drive their legitimately held company cars across the Border to their place of residence; and if he will make a statement on this situation in view of the efforts that are being made to develop cross-Border links and to acknowledge the logic of regionalisation in employment and economic terms. [5064/01]

Minister for Finance (Mr. McCreevy)

A person who is normally resident in the State is not eligible for temporary exemption from the registration requirement and, accordingly, may only use in the State a motor car which has been registered in the State. This applies whether the motor car in question is owned by the person concerned or is a company car. The only exception to this requirement is in the case of a foreign registered commercial company vehicle which may be used in the State by a State resident for business use on behalf of an employer established outside the State.

I have no plans to review or alter the rules set out above which are, I am informed, applied generally throughout the European Union. As the Deputy is aware, vehicle registration tax, VRT, is charged at the time of registration of a vehicle in the State and is an important and valuable source of revenue to the Exchequer. It is necessary to apply the registration rules fairly and consistently to all State residents and it would be inappropriate to differentiate in favour of persons who reside in the State but happen to work in Northern Ireland. Apart from the administration and policing costs involved in the collection of VRT, the use of foreign registered motor cars in the State by persons who are clearly State residents would lead to complaints from other residents and would seriously undermine Revenue's ongoing efforts to prevent the illegal use of foreign registered vehicles in the State, particularly in Border areas. I am also advised by the Revenue Commissioners that a number of decisions to refuse temporary exemption from the registration requirement in such situations have been appealed to the Appeal Commissioners and in each case Revenue's decision to refuse temporary exemption has been upheld.