Dáil Éireann debate -
Tuesday, 17 Feb 2004

Vol. 580 No. 1

Motor Vehicle (Duties and Licences) Bill 2004: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

Mr. Ring

A number of people have contacted me about high-powered spotlights on jeeps, lorries and cars asking about the law in regard to spotlights. I believe many people have been killed on Irish roads as a result of these blinding lights. I travel up and down to my constituency, spending more time on the road than at home. However, every time I see these high-powered lights I become annoyed. I question what the law is in this regard and what the Garda Síochána is doing about it. I have tabled parliamentary questions on spotlights. The lights on new cars also create problems. The cars are built for the flat roads on the Continent and when they hit a bump on Irish roads, high-powered lights flash on which are a hazard for other motorists. I have heard people say that when these high-powered lights hit their eyes late at night, there is a problem. Will the Minister respond in the House or have his officials write to me stating the law and whether the Garda Síochána is taking the correct approach to the matter?

Another issue I have raised every year since being elected to this House is road signage. The Department of the Environment, Heritage and Local Government has not dealt with the serious issue of signage. We are supposed to be one of the fastest growing modern economies in the European Union, yet it is impossible for visitors arriving at Dublin Airport to know from the signage how to go north, south east or west. What have the Department of the Environment, Heritage and Local Government, the Government and Ireland against road signage? I challenge the Minister or his officials to go out a quarter of a mile from any part of the city and try to find their way using the road signage. There is no proper signage in Dublin or in any city in this country.

Every year the issue of road signage is the largest cause of complaints to the Department of Arts, Sport and Tourism. Surveys show that people cannot find their way round the country. When people lose their way, they make mistakes which cause accidents. Last week the Minister for Transport, Deputy Brennan, spoke about changing the road signage to express distance in kilometres. Before more taxpayers' money is wasted, he should deal with the issue of road signage. Nobody gets lost in any part of Britain, because there are road signs everywhere. There is no proper signage directing one in or out of any city in Ireland. I acknowledge that extra funding has been allocated to signage, but I see no improvement. That is wrong. They erected a second set of signs in Dublin, having wasted money on the first set, but the job was not finished.

The motorist is fleeced from the day he or she buys a car, with the cost of tax, repairs and petrol. It is time that motorists organised and demanded better roads. The N5 from Longford to Westport is outrageous. Industrialists from County Mayo — from Allergon in Westport, which employs more than 1,000 people, and the health care sector in Castlebar and Ballina which export to China, Amsterdam and London — have lobbied the Tánaiste, the Taoiseach and the Minister for the Environment, Heritage and Local Government on the bad roads which damage products giving rise to a high level of complaints. That is not acceptable.

The BMW region is not getting the necessary level of finance from the National Roads Authority, the Department of the Environment, Heritage and Local Government or European funding. It is accepted in Europe that the BMW region has fallen behind in terms of infrastructure, but the region is not getting the drawdown from the Government. The investment seems to be made on the east coast. We deserve a national primary road from Westport to Dublin and it is wrong that it is not in place.

Inflation is running at 1.8%, yet the Government scalds the taxpayer with indirect taxes and is levying an additional 5% by way of motor taxation. The local authorities are out of control. I am calling on the Minister to introduce the necessary legislation to make local authorities accountable to the Comptroller and Auditor General, thus coming before the Committee of Public Accounts. Local authorities engage auditors but since I became a councillor in 1979, I have never seen a report on the way the auditor audited the local authority. At least the Comptroller and Auditor General presents his report to the Committee of Public Accounts which can examine the people involved. The witnesses also know they will be examined again the following year. That does not happen in local authorities. The Minister has lost control because his focus is on electronic voting and stopping people voting for whom they want. He is more concerned about running a dictatorship than a democracy. It should be pointed out to the Minister for the Environment, Heritage and Local Government that we live in a democracy.

While I do not wish to be negative on the question of the funding provided for national secondary roads, the only scheme I have seen working well in rural areas is the CLÁR programme. Although I have my disagreements with the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, at least he understands how rural Ireland works and the needs of rural areas. He has provided funding for the CLÁR programme and it is one of the better programmes for rural areas. These areas have not seen or received the resources they deserve for secondary roads.

We want equality. There is an imbalance in this country. Rural areas are not getting the infrastructure or funding they require. This country is drawing down EU funding on the back of rural Ireland and the BMW area but in all Departments that funding has been directed into the east coast. I have nothing against that area; it is important that it receives funding too. However, it must be a fair share. The east coast area has drawn down three and four rounds of EU funding while some parts of the west have not even received the first round. I hope when the Minister of State at the Department of Agriculture and Food, Deputy Aylward, is elected to the European Parliament he will fight on behalf of rural areas and tell the Europeans about the imbalance and how the Government conned the EU by drawing down funding on the back of the BMW region but diverted that funding to the east coast. We have seen some improvements but not enough.

Road signage and safety on the roads are important. It is also important to have good roads. People are paying enough motor taxes to have good roads. It is time the Government took another look at the rail service. It should stop big lorries carrying heavy loads of goods into rural areas and get them to use the train service.

Mr. F. McGrath

I am grateful for the opportunity to speak on this legislation. I wish to put on record my views on motor tax, the role of motors in Irish society, the road safety issue, the Dublin Port tunnel and other important matters relating to motorists and taxation. Over the years motorists have received a bad press and I do not agree with the current, politically correct aim of driving motorists off the roads.

I am a regular motorist and have driven around many parts of this country and through many countries in Europe. I have seen some examples of good practice in motoring as well as disgraceful and bad practices. Motorists have no problem paying their taxes and the figures show their massive contribution in tax to the Exchequer. However, do we get value for money? We need more good quality roads and a first class, efficient policing service.

I welcome recent progress in the construction of top quality roads. This has led to major improvements in the economic development of the country. It has also led to improved road safety. Most recent accidents have occurred on minor roads. We must confront this reality and improve these smaller roads. More investment is required to improve the quality of life for motorists, particularly those using minor roads.

While discussing this Bill on motor tax and the motoring sector in general, it is relevant to raise the issue of the Dublin Port tunnel. Most people have heard about the positive side of this project but there is another side. There are now 117 homes in my constituency whose walls, floors and doors have been damaged in recent weeks. The residents of Marino, Fairview and Santry have had to endure major disruption and, in recent days, major explosions took place under homes in Marino and Fairview. This has led to suffering and trauma. I am anxious to represent their views in this debate.

The way they are being treated is a disgrace and I urge Dublin City Council and the Minister for Transport to listen to their grievances and do something practical for them. There is no point winning awards for engineering projects when homes are being damaged by the use of explosives and huge tunnel boring machines. Today I received the up to date figures on this problem. The number of complaints registered in my constituency to date is 117. There are 72 complaints from within the 30 metre zone of the tunnel and 45 complaints from outside the 30 metre zone. There have been 72 building precondition surveys, the number of loss adjuster's initial reports was 77, the number of loss adjuster's investigations ongoing was 39 and the number of repairs of cracks undertaken to date is one. One house has been repaired. It is important that the Minister is aware of what is happening. There are 83 cracks in houses, 14 hairline cracks, 12 instances of jammed doors, windows and glazing, two damaged roofs, five homes with plumbing problems and one other serious complaint. The total is 117.

I raise these issues in this debate because the tunnel is part of the strategy for transport. Following inspection of alleged damage, it has been agreed with the remaining householders to postpone repair work until the return journey has been undertaken by the tunnel boring machine. Approximately 585 people in these 117 homes are directly affected by this project.

The primary purpose of the Bill is to give legislative form to the increases in motor tax rates and trade plate licences contained in the financial resolution passed by the Dáil on 25 November 2003. A standard across the board increase of 5% is provided for. The increased revenue that will arise will be paid into the local government fund. That is a progressive development. Since the establishment of the local government fund in January 1999, all motor tax receipts, including payments for driving licences and so forth, are paid into it. In addition, the fund is supplemented by an Exchequer contribution. The fund is ring-fenced for local authority purposes and is distributed to local authorities as discretionary grants in respect of daily spending requirements and expenditure on non-national roads. These are sensible objectives. I strongly support the concept of ring fencing funding for projects. That is what the consumer and motorist wants.

Section 1 is the interpretation section containing definitions used throughout the Bill. Section 2 provides that the new rates of motor tax and fees for trade plates apply to licences taken out for periods beginning on or after 1 January 2004. Yesterday saw another development in the continuing debate on transport when there was a huge stoppage in bus and rail transport in Dublin and throughout the State. A total of 9,000 transport workers are concerned about their jobs. These are decent, hard working people. They are PAYE taxpayers and many of them are motorists who pay their motor taxes. They have a right to be heard. I disagree with the political parties, particularly the Government parties and some of the Opposition parties, who attacked the NRBU. These workers deserve our support.

They are concerned about privatisation, which is an important issue for them. I appeal to the Minister not to wreck our public transport services. I accept that the stoppage was grounded on fear but some commentators have also said it was grounded on emotion, which I do not accept. I urge the Minister and the Government to talk and listen to the unions about these important issues. They are also relevant to the debate on motor tax. These 9,000 workers, in addition to working in the public transport services, have family cars and pay their motor taxes. They have a right to be heard because they are stakeholders in the service.

Earlier some Deputies said that the problem of potholes has gone from the agenda. I do not accept that. One road in my constituency, Philipsburg Avenue in Dublin 3, is full of potholes and I have been discussing this in the last few days with residents on the road. They are demanding action. Many of them are motorists who pay their motor taxes. They are demanding that these roads and potholes be fully serviced and surfaced. They are a health and public safety hazard and I urge the Minister, the Department and Dublin City Council to get their acts together and repair Philipsburg Avenue.

There is much misinformation on the matter of penalty points. Many of the people caught under the existing legislation are caught at seven or eight miles above the limit in 30 mph or 40 mph zones. However, most accidents happen where speeds of 80 mph, 90 mph or sometimes even 100 mph are the issue. Let us be honest with the people on this matter. The sad reality is that the death toll to date this year is 47, up ten on this time last year. We have a major problem with regard to road and public safety and we must deal with it.

Cyclists on our roads are another issue. I urge them to be careful and cautious. I support them in their campaign for cycle lanes. However, there are many irresponsible cyclists, particularly in Dublin. who jump red lights, weave in and out of traffic and clip off cars etc. I urge them to be careful so that we do not end up with cyclists being killed. They should have respect for themselves, motorists and the public.

We have a major crisis on roads like Collins Avenue and Griffith Avenue where heavy goods vehicles blatantly disobey the law of the land. I urge the Minister for Justice, Equality and Law Reform to address this. Heavy goods vehicles are using these roads although they are not permitted to enter these areas. The law must be implemented properly.

I commend the motorists of this country who contribute €4 billion to the Exchequer in taxation. They have a right to proper services and roads. They also have a right to an input into the development of services as do the 9,000 workers, many of whom are motorists, who took part in yesterday's public transport demonstration. The way to solve the problem is through a combination of private motoring and quality public transport. It is not one or the other.

I disagree with some of my colleagues in other parties who appear to be obsessed with hammering motorists. Yes, we must have a quality public transport system but we must also respect the rights of private motorists. The reality is that people need a car to bring their children to schools and football matches etc. These are matters for our debate on motor taxation. Some €4 billion has been given to the Exchequer by motorists who have no problem with paying their taxes. These normal decent people who pay their taxes deserve services. We have no problem with paying our taxes but we are putting down a marker in this debate with respect to this legislation. We will pay our taxes but we demand a say in the provision and running of the services. The Government should not dismiss lightly the views of motorists and taxpayers.

I thank the Leas-Cheann Comhairle for the opportunity to address this Bill.

Mr. Murphy

I wish to share my time with Deputy Tom Hayes.

An Leas-Cheann Comhairle

Is that agreed? Agreed.

Mr. Murphy

The continuing increases in motor tax have a detrimental effect on the quality of life, particularly of rural dwellers. The tax must be paid irrespective of people's ability to pay. People in rural Ireland have no choice as without public transport a car is essential. Two cars are essential for most households where one partner must drive to work and the other must take children to and from school and other social events. Most of these families live on the minimum wage and household budgets are tight. In order to survive, these families must have discretion on how they spend their money. However, like many other tax charges such as water charges, refuse charges, development charges, car tax is a standing charge which must be paid irrespective of the family's income or ability to pay.

This situation is made worse by this Government's policies. Despite the lip-service paid to rural communities, the Government continues to deplete rural towns and villages of essential services through policy after policy. Post offices are closing down at an abnormal rate as a result of a successful collaboration between the Government and An Post. The Government is the only shareholder in An Post and therefore, one must assume An Post is carrying out the will of its shareholder. If not, the Government has the power to deal with the situation to ensure An Post carries out its policy. The current policy and collaboration appears a clever tactic to close post offices in our towns and villages.

Pensioners in rural areas have no choice but to have a car. The nearest post office could be 15 or 20 miles from them. The nearest cash machine and many other services are inaccessible without a car. Pensioners on €164 per week need transport. They must have a car or take a taxi and to get to even the most basic service can cost them up to half of their pension. The free travel scheme introduced for pensioners is an excellent scheme and works well for those living in cities. However, its effectiveness is limited in rural areas because no public transport is available. Pensioners are still expected to pay an ever increasing tax on their cars. Those in rural areas who value their independence have no choice in the matter and will sacrifice many ordinary everyday necessities to maintain their independence.

This Government continues to tell us it is a low tax Government. Nobody argues that it is a low income tax Government for the wealthy. These people have no problem paying stealth taxes such as motor tax or service charges. The story is different for people on middle incomes, those in the minimum wage group or people on social welfare. Even with the increased stealth charges the Government is imposing on local authorities, these authorities are still grossly under-funded.

Apart from roads, basic services such as the disabled person's grant have been suspended for almost a year. Nobody can justify the fact that elderly people are living in damp cold conditions without a shower or a bathroom. This is what the policies of this Government impose on our elderly and disadvantaged. The net result of these taxes, imposed under the pretext of local authority funding, is that the poorest and weakest in our society must pay taxes such as car tax, irrespective of their ability to pay. On the other hand, they cannot depend on county councils to provide a disabled person's grant, an essential repairs grant or a half decent road to their houses.

According to the Department of the Environment, Heritage and Local Government, motor tax is for the restoration, upgrading and repair of county and regional roads. However, the Department makes such a complicated affair of funding local government that nobody is ever sure what funds are being increased and which are being decreased. The refusal of the Government to fund benchmarking for local authorities has hampered them from increasing road funds from their own resources. On 27 January this year the Minister, Deputy Cullen, had the cheek to threaten local authorities that if they did not continue to put money into local roads, he would punish them by cutting back their funding. He expects local authorities to put €150 million into local road networks this year while at the same time depriving them of €160 million by not paying benchmarking.

Considering this, one wonders whether the Minister is living in the real world. Local authorities are at their wits' end trying to keep basic services going, let alone provide extra funding for county roads. In Cork basic hedge cutting, done by the council for years, was suspended last year and will be suspended for the foreseeable future.

The Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, made an announcement about his new CLÁR initiative. He referred to the money he was allocating to CLÁR. It is true that funding was allocated to minor roads in the CLÁR region, but what nobody realised until a few months later was that the same amount of money was withdrawn through the abolition of the tertiary roads grant.

Mr. Hayes

Shame.

Mr. Murphy

It was a big announcement by a Minister about the transfer of puny resources from one fund to another.

The greatest scandal of all for the people of Cork is that despite the fact that they pay car tax at the same rate as everybody else, for the past seven years under the Government, Cork has been consistently last or second last of any county in terms of euro per kilometre spent. With two Ministers, one Minister of State and nine backbenchers, County Cork continues to fare the worst in the country.

Even from a roads point of view it is hard to see where all the car tax money is going, in addition to all the other taxes collected. It is impossible to justify the black hole into which these taxes are disappearing. It is painfully obvious that rural areas suffer the most and get the least value for taxes paid. The underlying injustice of this tax and many other stealth taxes introduced by the Government is that they must be paid irrespective of ability to pay. If the Government persists with this tax policy, it should look at ways of reducing the burden on pensioners by introducing a waiver scheme for rural dwellers living on social welfare. The Government will not change its colours, it is a Government for the rich and privileged and, as long as taxes are indirect and do not unduly affect its friends, it will continue to ignore the plight of those not in a position to pay these increases.

Mr. Hayes

I am glad of the opportunity to say a few words on this important subject. The huge increase in the number of cars in the past ten or twelve years is a sign of our reliance on the car. Not so many years ago people spoke of a house as being essential to their needs. In recent years the car has also become an essential part of our lives. A few years ago there was one car to every house, but now there are up to four. We see this stark reality as we travel around the country. There are now more people working in each household, which is for the good of families, the community and society in general. Nowadays both partners often work. The number of people commuting long distances to work has also increased, leading to an increase in the number of cars on our roads.

The most startling figure that was revealed of late is that €4 billion is spent annually by motorists on taxation. Any increase is hard to take but the recent increase in tax is more difficult again. Road users are getting worse value for money than ever before.

I accept that roads have improved in some areas. However, with the amount of tax paid, are people getting value for this extra money? Are local authorities giving value for money and accounting for the money they spend? Many roads need upgrading, especially tertiary roads. Only a fraction of the money needed is available to community and local improvement schemes. We need to get better value for money from local authorities. If this was sought, local improvement schemes, which have upgraded roads in certain areas, could go further.

Many simple measures, such as hedge cutting, could to be implemented which would make driving a great deal safer. Four or five years ago most country roads were cut late in September or October on an annual basis. It made the countryside look a lot better but the practice has ceased in most local authority areas. Deputy Murphy referred to it ceasing in Cork last year. In my own county it ceased three years ago. The same is true of hedge cutting in county council areas right across the country. This is a simple way of making our roads safer. With all this money going into local authorities, the Department of the Environment, Heritage and Local Government should insist that hedges be cut. More co-operation is required with landowners. It is not simply a case of landowners tidying their hedges.

With the amount of money available it is possible to make rural roads, in particular, a great deal safer. Signage is deplorable in certain rural areas. Feeble efforts are made by some local authorities to paint and redecorate their signage. From travelling to Europe we have enough experience of how signage is dealt with in other European countries. There is no excuse for us not improving our signage.

Road accidents were referred to earlier in the debate. It is true that roads appear to have become more dangerous. The introduction of penalty points brought about a decrease in road accidents but over the weekend we saw that the figures are slowly creeping up again. The Department of the Environment, Heritage and Local Government needs to have a more hands-on approach to ensure that our roads are safer.

Other simple measures can be taken in regard to lorries. Like many other people in Leinster House, I travel to and from my constituency. Many trucks travel the same roads. In wet conditions trucks spray water from their sides because they do not have any flaps. Legislation should be introduced to ensure that all trucks are covered on their sides with rubber, particularly over the wheels, as they are in other countries. This is a simple measure which would make driving a lot safer for the motorist.

By neglecting rail, we have lost out on an opportunity in regard to transport. We are over-reliant on road transport as a means of transporting goods to ports and other destinations. We should concentrate more on our rail network to improve the safety of the motorist. In the long term this would make driving a great deal easier. We need to examine the impact of heavy goods vehicles on our road.We need to look at this as it is having a devastating impact on the structure of roads.

For far too long we have been much too slow about improving traffic calming measures in villages throughout the country. I was in a school in the village of Rosegreen last week. The headmaster pointed out trucks travelling past the school at 30 mph and 35 mph. With a little skid, those trucks could land in the grounds of the school or even the classroom. We are told that the local authority does not have money available for traffic calming measures there.

We are constantly increasing taxes in the State and that is the purpose of this Bill. If we are doing so, we should be providing more in return. This is why the public is against the increases in taxation. If the public could see improvements in hedge cutting, road signage and traffic calming measures, they could more readily accept it.

I know the House will pass the Bill. It will mean that more finance is made available and I hope that it is seen to give value. Motorists are fed up paying more money and not getting value for it. The public wants value and richly deserve a better return on their taxes.

Mr. P. McGrath

I am glad that the Minister of State, Deputy Noel Ahern, is in the House to hear our contributions. I hope he notes them and brings the message back to his senior Minister. This is the place that counts — or should count if we live in a democracy. Opinions are expressed here and Ministers are responsible to the House. The Minister is not responsible to the pressure groups that he loves to meet. He loves to have the cameras and the pretty girls in attendance; he uses them at every launch. While I am disappointed that the Minister is not in the House, I know that the Minister of State will report back to him.

The purpose of the Bill is to bring in more tax. With its 5% increase across the board, it imposes more tax on the poor motorist. The Government says it is doing so much for ordinary people and made a song and dance about what it spends on social welfare. They did not tell the people that they were going to increase car tax. This is on top of other taxes imposed on motorists. VRT is extremely high in this State. While people talk about being in the EU, it has no effect when it comes to vehicles. Ireland has one of the highest charges for vehicles in the EU. What about buying goods in another EU country? One can buy what one likes, but Ireland will crease one with VRT when one returns here with a car purchased in another EU state.

Why can we not have the famous level playing pitch that people keep talking about? We cannot because the Government wants more tax and to cripple the motorist. One need only consider the taxes applied to diesel and petrol — increases were applied to these in the last budget. Time after time, the poor motorist is being hit. The NCT seems to be a money-raising venture. One will hear of the minute reasons for which cars have been failed. Owners must go back, pay the fee — that is the important thing — and the car will be passed immediately. It is another tax on motorists.

The Minister of State lives in a city and has buses running past his doorstep that will carry him where he needs to go. If he needs to use the post office, there will be one within a bus ride, if not within walking distance. Similarly, Garda stations and Government services are within easy reach by foot or bus. This is not the case in rural areas. Many pensioners have to travel eight or ten miles to collect their pension at the local post office. While the Minister of State might say that they should have it paid by standing order into their bank accounts, pensioners will still have to travel to the local town to use an ATM. Public transport is inadequate in many places and they need to have their own vehicles. Many people cannot access services locally because the Government is closing post offices and Garda stations, etc. It is not fair that this additional tax should be imposed on them.

When one consider the taxes imposed on vehicles, the cost of the NCT and thinks of the income some elderly people are living on, one will think it is too high considering the few miles they travel each week. They use the vehicle to travel to the nearby town to collect the pension, shop for groceries and attend Mass. It is not fair to increase motor tax by 5% in a country where having one's own transport has become so important.

The explanatory memorandum states that since the start of the local government fund in January 1999, all motor tax receipts, including driver licence fees, are paid into the fund. Furthermore, the memorandum states that the fund is ring-fenced exclusively for local authority purposes and is distributed to local authorities in respect of discretionary grants in respect of day to day spending requirements and for expenditure on non-national roads. While many people think this money is used solely on roads, it is not the case; it is used for a variety of services across the local authority sector. One will hear people justifying the rise by saying extra money will be made available for roads. This money should be ring-fenced for roads and ensure they are brought up to standard. Many of our roads are in poor condition and special measures must be taken to bring them up to standard.

I have a bee in my bonnet regarding speed limits at schools. I am sure the Minister of State has been to the United States. If he has, he may have seen the special speed areas outside schools. At school opening and closing times a speed limit of 15 mph is put in place, signalled by flashing lights. Anyone who breaks this is treated quite severely. We need to something like this here. Coralstown national school is adjacent to the N4 near Mullingar. Parents transporting their children to and from school must park on the side of this national primary route where the speed limit is 60 mph. While flashing lights are in place there, they do not seem to have any effect. We are lucky in that we have not yet had a major problem there. This is the type of area where a pilot scheme with special provisions could be put in place. I am looking for this at school opening and closing times, and I hope the Minister will take note of my request. Coralstown is the famous school that hit the airwaves. One of my colleagues delivered around this time last year a letter and a photograph with the Minister to the school. He was going to deliver money for the school, which was to be built and opened. The money had been "ring-fenced" — that famous word which I see here in the explanatory memorandum.

Mr. Durkan

Bad fencing.

Mr. P. McGrath

Money had been ring-fenced for the school, but what has happened to the fence? The cow has got out through the fence and taken the money with it. The latest on that school is that it is down the line, still at the stage of architectural planning.

An Ceann Comhairle

The Deputy might be wandering from the Motor Vehicles (Duties and Licences) Bill 2004.

Mr. P. McGrath

I am talking about safety and how some of the money that might be raised on the extra 5% could be spent, giving a suggestion from my own county on how that might be done. Perhaps the Minister might also examine, when he returns to his Department and talks to his senior Minister, the matter of driver testing. It is a laugh to think that we have almost 1 million people driving on provisional licences in this country. Will the Minister get his finger out and do something about this? He should try to get it moved forward and get the tests sorted out as quickly as he can. This really needs to happen as matters are in a bad way.

Mr. N. Ahern

That is now under a different Department.

Mr. P. McGrath

Dear me. Pass the buck.

Mr. N. Ahern

I was merely giving the Deputy factual information.

Mr. P. McGrath

I thank the Minister, who is always very good at that. I also wish to raise something that no one else has mentioned but which relates to vehicles, car tax and so on, namely an EU directive on end-of-life vehicles. It stated that, when vehicles reach the end of their lives, they be disposed of in an environmentally friendly manner. One would get rid of the oil and the exhaust, which would not simply be piled in a heap, and all that costs money. The players involved in this such as the motoring organisations, the Minister and the car dismantlers all came together before the last election with another Minister — Deputy Noel Dempsey at that time. An agreement was reached regarding what would happen about the end-of-life vehicles directive and how it would be implemented in Ireland. Everything was sorted out, signed and sealed or so we thought.

However, after the election a new Minister was appointed. That new Minister, for some reason or another, decided that he would reopen the whole business. Strangely, when he did so, he went to talk to only one of the partner organisations in the outfit, namely, the SIMI. He did not bother talking to the other people, the dismantlers, at all. They were quite happy with the arrangement, but suddenly the SIMI got cold feet on it, and it seemed to enjoy power and influence, having the ear of the Minister to get the previous agreement dismantled.

Nothing has happened. It is all up in the sky, and the directive, which should have been implemented in this country two years ago, has still not been implemented. The EU is now taking us to court over it because the Minister decided to unravel what appeared to be a perfectly good agreement. The partners who had signed up to it were happy with it, but the Minister decided to revisit it. Why did he do that? Who brought the influence to bear on him? Why did he unravel that agreement, and will he come into this House and explain to us what exactly happened, who he met, what discussions he had and by what right he failed to implement the directive when it seemed a good thing to do?

Given the difficulties faced by motorists in this city, I sometimes marvel that people around Dublin have cars at all. To drive in and out of this city with traffic at its current levels is absolutely awful. The other morning I was coming to Leinster House, and it took me 40 minutes to come from the Liberties to here. The traffic was appallingly bad as it is regularly. Then, if one manages to negotiate the new Luas lines, the potholes and the digging of the roads, to avoid the clampers, who represent another tax on the motorist in Dublin, and get to one's destination, the sad thing is that one must face the journey out again later. The congestion is terrible, and we are failing to do anything about it, not managing traffic properly in this city and, unfortunately, in many provincial towns. I can mention my own town of Mullingar, where the congestion is becoming quite unacceptable. We are failing to keep pace with the need for additional parking spaces and to provide access to and exit from towns in a free-flowing fashion, enabling motorists to do their business and move on. We are wasting time and energy and polluting the atmosphere by having long tailbacks for drivers and car owners while they attempt to gain access to the various towns and services they require.

I also neglected to mention rural people and the need for vehicles. All those over 66 years are entitled to a free travel pass. In many rural areas, that is absolutely useless. I know that it is not the responsibility of the Minister's Department, but it relates to the transport sector and he could perhaps use his influence with the Minister for Social and Family Affairs, Deputy Coughlan. It might be logical to allow rural people to convert their free travel pass to vouchers that they could use in taxis. If one is living in the back of beyond and there is no bus service in the area, what good is a free travel pass? However, if one had a voucher system worth perhaps €100 per annum, one could use it with one's local taxi service to gain access to the town for one's pension or provisions or for whatever purpose. This would be fair recompense to those people who live in rural areas and do not have the opportunity to use their free travel passes.

If one is in the city, one has great access to public transport and can use that free travel pass regularly and get fantastic value from it. One can get many miles under one's belt by using it. Unfortunately, one's rural cousins do not have the same bonus. It is an idea that the Minister might want to bear in mind. A few years ago, we made provision for people living on islands to use the free travel pass to fly in and out as a concession. There was some help towards those journeys. Why not now extend this in order that the free travel passes can be used by those living in rural areas? It is quite a simple system. People would get vouchers cashable through the Department in the same way as the butter voucher system some years ago. People would get vouchers and could use them with taxi services. That would help defray the cost they incur regularly by paying their way to various places.

Mr. Durkan

I am honoured to say a few words on this Bill. I have felt for some years that the poor unfortunate motorist is beset by problems such as bad roads, Government, and every single obstacle that one could imagine. This is a far cry from 1977, when the incoming Fianna Fáil Party Government was elected with the largest majority in the history of the State on the basis that it would abolish car tax. We were to have free roads with no car tax and would live as if tomorrow would never come. After a year or two, however, the country went broke and was sunk in debt to the extent that it has taken almost the entire intervening period to extricate ourselves from it.

That was a different era when what was important was getting the election in the bag. The electorate was bought by dangling promises, but once it was in, the door was slammed shut. Times have changed and more mature visions have taken over the Government. The motorist is now seen as somebody who can be regularly squeezed for more revenue to enable the Government to fulfil its promises at the next election, having failed to fulfil its promises at the previous election. The theory is that if it hammers the motorist hard enough, it will have enough money to buy the next election. As for the election after that, the Government hopes that with the grace of God and a few other interventions, people may not take much notice and will allow it to slip back into power again.

Total revenue from motorists currently stands at €4 billion per annum. For all the recognition motorists receive, they now appear to be the equivalent of public enemy No. 1. While I appreciate the need for road safety and compliance with regulations, regardless of where motorists drive, somebody is watching, checking, examining and challenging them.

In the past two budgets, the Minister for Finance decided to take a closer look at motorists. His policy appears to have been to ask who they think they are driving around the countryside in their cars and how he can take more from them. This would not be so bad if we had roads of a similar quality to those in other European countries, including some of the former communist countries, or if one could drive on our roads without fear of losing half one's car in a pothole. We have, however, some of the worst roads in the world and there is no point in the Government priding itself in the work it has done in recent years.

We also have the smallest number of motorways in Europe. Some people may argue that this is beneficial, but if we want to progress and move with the times, we need to examine modes of transport. In the absence of an alternative to the car, we must assume motor vehicles are likely to be a mode of transport for a considerable period and the motorist is here to stay.

It is odd that in most other countries efforts are made to ensure motorists can travel from A to B as quickly as possible, roads are smooth and safe and vehicles are safe, whereas motorists here face an obstacle course. The first hurdle is the driving test. Motorists are lucky to receive an appointment for a driving test within a year or 18 months of joining the waiting list. In some areas, including my local area, failure rates are 50%, which means the unfortunate motorist who fails must wait another year or 18 months before going through the same procedure, again on the basis of a 50-50 chance of being successful. The system is something of a lottery and the unreasonable 50% failure rate raises only two possibilities, either the instruction or the test is flawed.

If the poor, unfortunate motorist passes the test and survives the potholes and the Minister's annual motor tax and VAT increases, he or she has the pleasure of being involved in traffic jams. Every local parish pump village can boast of its own traffic jam as a result of lack of vision and forethought in designing our roads, which one would have expected to be a priority. Towns and villages with populations of 200 or 300 have traffic jams four times a day, during the morning and evening rush hours and as children are brought to and from school. Motorists in ordinary country villages have all the benefits of motoring, including traffic jams on their doorstep, for which they contribute to the sum of €4 billion to which I referred.

Motorists are blamed for pollution, travelling on the roads and being alive, while the €4 billion they contribute to the Exchequer each year appears to go unnoticed. This revenue appears to be taken for granted, as if it was a State's right to insist that people hand over such a sum a money on an annual basis in order that it can do with it as it likes. No recognition is given to the fact that the unfortunate, hard-pressed motorist must meet this bill every year.

The Minister has made considerable capital out of the non-national roads allocation for this year. This may be wonderful, but it is not a minute before time. Even if the amount were doubled, it would not be noticed. In view of the necessity to have roads in good condition around election time in June, the Government decided to address the issue.

Recently, I punctured two tyres in two potholes. This was the first time this happened since I started driving in about 1962 — perhaps I can no longer drive as well as I could. The Minister of State may have picked up the wrong folder but he need not worry.

Mr. B. Lenihan

I am tempted to make a point of order.

Mr. Durkan

I would be tempted to answer it.

Mr. B. Lenihan

Even on Second Stage.

Mr. Durkan

Yes.

Mr. B. Lenihan

It concerns the relevance of the Deputy's contribution.

Mr. Durkan

Its relevance is the degree to which the Government, of which you are a strong supporter, has taken gullible motorists to one side, extracted money from their pockets and given them nothing in return. You should be ashamed of the condition of our roads. A Cheann Comhairle, you are looking at me as if I did not have much time left.

An Ceann Comhairle

The Deputy should address his remarks through the Chair.

Mr. Durkan

The Minister of State upset me again.

An Ceann Comhairle

The Deputy should not allow himself to be upset. If he addressed his remarks through the Chair, he might not invite interruption and would not be upset.

Mr. Durkan

I was afraid the Ceann Comhairle would take my remark personally. At this juncture, it is worthwhile to remind the Government of what it has done to the poor, unfortunate motorist. It has created traffic jams everywhere and charged motorists large sums of money to inhale the exhaust fumes from their cars as they sit in traffic. What else does it have in mind for motorists?

The motorist and the rail passenger are about to meet. It has been said that never the twain shall meet but they are about to do so in this country in a fashion that was never intended, at a roundabout called the Red Cow. Is it fair that this motorist who is carrying on his back this burden of €4 billion which he subscribes every year to the Government, should have to face into a train crossing the road at the Red Cow roundabout? That is how it will be. There is nowhere else for the train or the motorist to go. I suggest that some considerable soul-searching needs to take place to find out who will have the right of way at that time and who should now pay the price of the burden being placed on the poor, unfortunate motorist.

The Ceann Comhairle is a medical man and knows the dangers of being too long in a tunnel, inhaling exhaust fumes. We were recently informed about another Government enterprise in store for the motorist, namely, the Dublin Port tunnel. This tunnel has been a long time in preparation and I am informed that all modern technology was used in the preparation of the plans. Not only did it appear to be too shallow and too narrow but now it appears that it does not have sufficient air——

Mr. N. Ahern

The Deputy should stick to the Naas Road.

Mr. Durkan

——and again the motorist who is carrying the €4 billion burden of his annual subscription to this Government, will sit in the tunnel in the gas without a gas mask. That is appalling. The Ceann Comhairle is a medical man and will recognise the dangers.

An Ceann Comhairle

On Second Stage of the Motor Vehicle (Duties and Licences) Bill, a passing reference might be appropriate but to go into detail——

Mr. Durkan

Absolutely. I am not going into detail; I am just making a passing reference to the dangers of motoring and the burden of the tax bill on the motorist.

An Ceann Comhairle

Your passing reference is fine, Deputy, but going into detail would not be appropriate on this Bill.

Mr. Durkan

The safety of the motorist is important.

An Ceann Comhairle

Of course it is.

Mr. Durkan

I hope that you as a medical man have kept that in mind as well. The people on the other side of the House have forgotten about it entirely. They do not give two pins for the poor unfortunate motorist; all they want is the €4 billion that he has to give them and they have various ways of getting hold of it. They take it by way of VAT, including on tyres, excise duty, motor tax and fuel tax. I wonder why the Government Members are not ashamed and why they do not come into the House one day and say to the motorist, "We are very sorry, we have been taking from you for years and have given you nothing in return." Is it that the poor, unfortunate motorist is public enemy No. 1 and is there for the taking at all times?

I wish to make two other passing references. If the unfortunate motorist manages to pay all the taxation laid upon his head by the Government, and manages to avoid potholes, traffic jams, the Red Cow roundabout, the tunnel and eventually finds a parking place, the chances are he will be clamped. This is a very relevant reference to this Bill which is the Motor Vehicle (Duties and Licences) Bill 2004. After some considerable difficulty and having put down a series of parliamentary questions to find out exactly how much more money was burdened on the motorist's back other than the tyres, fuel and so forth, I finally received a truncated reply. Most replies from Government nowadays are in truncated form and we have to measure them up ourselves and try to merge them in such a way that they make some kind of sense. Otherwise we do not get the answer. No matter what I did, I could not get an answer about the tolls.

One day I was at the toll bridge and I counted the number of vehicles going through. It was not a very busy day but for some unknown reason, it showed up a far higher revenue than is readily and regularly available to the general public as accruing from this area. I have now come to the conclusion that the poor, unfortunate motorist, having again travelled the roads, hit the potholes, paid for the tyres, the petrol, the roads, and ignored——

An Ceann Comhairle

Deputy Durkan, your time is concluded.

Mr. Durkan

My time could not be concluded.

An Ceann Comhairle

I am obliged to call the Minister of State to conclude the debate.

Mr. B. Lenihan

It is time the Deputy was clamped.

Mr. Durkan

I am delighted to come to a conclusion. I extend my sincere condolences to the unfortunate Irish motorist who carries on his back the greatest burden of all European motorists by contributing to the State €4 billion per annum for which he gets very little in return.

Minister of State at the Department of the Environment, Heritage and Local Government (Mr. N. Ahern)

One would not think from listening to the debate that this Bill is to give permanent legal standing to the increases in motor tax which were introduced by financial resolution in the Dáil last November. These increases were introduced with the sole purpose of funding the national roads programme to ensure that local authorities can continue the great progress made in rehabilitating the national roads network.

Deputy Durkan referred to the safety of motorists. The motorist certainly has been given safe roads. The statistics are very impressive. I was amazed at the figures which showed that the number of deaths on Irish roads last year and the year before are half the number killed on the roads in the early 1970s——

Mr. Durkan

Those are not the statistics of the last few days.

Mr. N. Ahern

There will always be ups and downs, sadly. The number of vehicles on the roads is approximately four times the number in the early 1970s. However, the number of deaths has been halved from a peak in the early or mid-1970s of over 600 a year to approximately 330 last year, even though the number of cars has increased by about four times.

Mr. Durkan

They are parked in traffic jams.

Mr. N. Ahern

A number of factors such as safer cars have contributed but it is also due to better and safer roads. In conclusion, I thank the Deputies who contributed to the debate which was wide-ranging and covered a number of issues and may have wandered off the point at times.

This Government attaches great importance to local government. It is important that issues relating to the system and funding of local government are well debated. We may not always agree on the solutions but it is good that local government is deemed not only relevant but also important. It is considered by all sides of the House to be one of the cornerstones of our democratic system. Many of us have come from the local authority system and many Members are experts on the system. I hope that will pertain in the future when there will not be as many Members with a background in local government.

I assure the House that the Government would not consider increasing any tax if it did not consider it as the correct thing to do. The increase in motor tax by 5%, no matter how unpopular that decision, was the right decision at the time. I do not wish to be flippant but we all know that money has to be earned, it does not come into the Exchequer easily. If we wish to improve our non-national roads network and support local government, then it is necessary to put in the resources.

It is interesting to hear Members speak of the need for funding of local government yet they object to this increase which was designed to give extra funding to local government. It is entirely appropriate that funding for non-national roads would be sourced from motor tax as opposed to general taxation. I hope the House will agree that it is a better system than that which pertained in previous times when motor tax was simply absorbed into the Central Fund for use by the Exchequer and was not allocated to local government or roads.

When introducing the Bill, the Minister of State said that motor tax receipts, together with an Exchequer contribution, are paid into the local government fund. The introduction of this arrangement led to a huge improvement in the level of resources available to local authorities, particularly for non-national roads. Any objective analysis of the funding system now in place for local government will find that it has been working very well in recent years.

Despite increased pressure on the public finances, this year's level of funding for the non-national road network is the highest in the history of the State. The Government is investing an average of €4,600 per kilometre on non-national roads in every county. This enormous level of investment is more than double what was spent in 1997. It represents an increase of some 10% on last year's allocation. Given that inflation is running at 1.8%, it is extraordinary that we can provide for an annual increase of 10%. I am pleased that the Government can provide an historic amount of money this year to continue its record of providing record levels of funding for the non-national road network. This achievement, which is considerable in the present economic and budgetary situation, has been helped by the fact that a financial resolution was passed last November.

The Government has introduced a new signage programme, which was demanded by Deputies Ring, Hayes and others during this debate. Some €5 million has been allocated to this programme for the current year.

Deputy Gilmore advocated that an annual report on the local government fund should be presented to the Dáil. I agree with him that there should be full disclosure and accountability in respect of the disbursement of all public funds, including the local government fund. The Deputy will be happy to learn that the presentation to both Houses of the annual accounts of the fund is required under section 3(5) of the Local Government Act 1998.

Certain Deputies spoke about variations in the level of roads grants. They claimed that some local authorities are receiving bigger increases on last year than others. The variations in grant allocations can be explained by reference to a number of factors. Although the total sum available for allocation is 10% greater than last year's allocation of €434 million, as I said earlier, the effects of certain grant streams, particularly those relating to the regional roads signposting programme and strategic non-national roads categories, mean that some local authorities will receive grant increases or decreases that are significantly different from the average. The grant category of "strategic non-national roads", which relates to support for housing and other developments, is available to a limited number of local authorities. This category may be responsible for skewing allocations and percentages for these local authorities, depending on the stage of approved schemes. It is in the nature of such schemes that allocations to local authorities tend to fluctuate from year to year, depending on the size and scale of individual projects. The fluctuations tend to be ironed out over a period of time.

Deputy Gilmore also spoke about the way in which non-national roads grants are allocated. I can inform him that block grants, including special block grants to urban authorities for footpath and carriageway restoration, are allocated on the basis of population. Special block grants have been paid to urban authorities, in addition to their ordinary block grants, for the last five years in recognition of the special needs of urban authorities. The special block grants must be used for restoration works on carriageways and footpaths and should ensure good driving and walking conditions in urban areas. The special grant supplements the block grant received by city, borough and town councils.

Deputies Hayes, Twomey, Ring and others questioned how local authorities spend their funding and their level of accountability. Local authorities are as accountable as all other public bodies. Given that local authorities are democratically elected, they can be said to be more accountable than many other public bodies. Those of us who have been involved in local authorities and have colleagues who are still members of local authorities know well — thank God for it — that officials are put under close scrutiny by councillors on these bodies. Local authorities publish annual accounts and are subject to audit by the independent local government audit service. They must publish a large number of performance indicators so that the public can assess their performances. It is worth noting that local authorities have introduced modern financial management systems, based on accrual accounting principles. As a result, local authorities are ahead of many other public bodies in terms of accountability and transparency.

A number of initiatives have been introduced to increase accountability and value for money since the Local Government Act was enacted in 2001. Local authority draft budgets must be considered by the authority's corporate policy group. Local authorities are empowered to establish local audit committees to review audit reports and accounts. I reject any suggestion that local authorities are not accountable, or do not show that they are delivering value for money. I do not know if it is appropriate for those of us who have queries to speak about individual problems in this House, given that the relevant officials can be placed under close scrutiny on these issues at individual local authority level. We may no longer have the right to conduct such scrutiny personally, but our party colleagues can certainly do so.

Deputy Ring suggested that the number of persons employed at local government level has increased in recent times. This is untrue, as the opposite is the case. Since the Government decided to reduce public service numbers, the number of persons employed in local authorities has decreased by approximately 1,000.

Deputy Ring also asked for information about spotlights on cars. Like some other issues that were raised during this debate by Members, it is now a matter for the Minister for Transport.

Deputy McCormack raised the question of tax reliefs for disabled drivers. A scheme of relief which is in existence provides for a range of tax reliefs in connection with the purchase and use of vehicles by qualifying disabled drivers, passengers and organisations involved in the transport of persons with qualifying disabilities. An interdepartmental review group chaired by the Department of Justice, Equality and Law Reform and including representatives of the Departments of Health and Children, Finance and Social and Family Affairs has presented its report on the scheme to the Minister for Finance. The report is being considered by the Minister, Deputy McCreevy, who is the responsible Minister in this area.

A few Deputies have suggested that motor tax which has been collected——

An Ceann Comhairle

The Deputy has one minute remaining.

Mr. N. Ahern

This Bill gives legal effect to the measure which was introduced last November. The general purpose allocation of €752 million this year represents an increase of 14% on the allocation in 2003 and is 122% more than the corresponding allocation for last year. It does not make sense for Members to say that the money being given by the Exchequer to the local government fund is not being put to good effect, as it is being used well. The increase of 5% which was provided for last November will raise an additional €34 million in motor tax. All of this funding will be allocated directly to non-national roads. The 2003 non-national roads allocation from the local government fund of €394 million has been increased by €34 million to €428 million this year, which is an enormous amount of money. The charges made by the Opposition do not make sense.

I am confident that the increase in motor tax is desirable and will provide an important funding contribution towards the non-national road network this year and, thereby, allow the continuation of the excellent overall improvements that have been made to the road system in recent years.

Mr. Allen

Motorists would not agree with the Minister of State.

Question put.

The Dáil divided: Tá, 62; Níl, 40.

Tá

• Ahern, Michael.
• Ahern, Noel.
• Ardagh, Seán.
• Aylward, Liam.
• Brady, Johnny.
• Brady, Martin.
• Brennan, Seamus.
• Browne, John.
• Callanan, Joe.
• Callely, Ivor.
• Carey, Pat.
• Carty, John.
• Collins, Michael.
• Coughlan, Mary.
• Cregan, John.
• Curran, John.
• de Valera, Síle.
• Dempsey, Tony.
• Dennehy, John.
• Devins, Jimmy.
• Ellis, John.
• Fitzpatrick, Dermot.
• Fleming, Seán.
• Glennon, Jim.
• Grealish, Noel.
• Hanafin, Mary.
• Haughey, Seán.
• Hoctor, Máire.
• Jacob, Joe.
• Keaveney, Cecilia.
• Kelleher, Billy.
• Kelly, Peter.
• Kirk, Seamus.
• Lenihan, Brian.
• Lenihan, Conor.
• McCreevy, Charlie.
• McGuinness, John.
• Martin, Micheál.
• Moloney, John.
• Moynihan, Michael.
• Mulcahy, Michael.
• Nolan, M.J.
• Ó Cuív, Éamon.
• Ó Fearghaíl, Seán.
• O'Connor, Charlie.
• O'Donnell, Liz.
• O'Donoghue, John.
• O'Donovan, Denis.
• O'Flynn, Noel.
• O'Keeffe, Batt.
• O'Malley, Fiona.
• O'Malley, Tim.
• Parlon, Tom.
• Power, Peter.
• Power, Seán.
• Sexton, Mae.
• Smith, Brendan.
• Wallace, Dan.
• Walsh, Joe.
• Wilkinson, Ollie.
• Woods, Michael.
• Wright, G.V.

Níl

• Allen, Bernard.
• Breen, Pat.
• Broughan, Thomas P.
• Bruton, Richard.
• Burton, Joan.
• Costello, Joe.
• Coveney, Simon.
• Crowe, Seán.
• Deenihan, Jimmy.
• Durkan, Bernard J.
• Enright, Olwyn.
• Ferris, Martin.
• Gilmore, Eamon.
• Gormley, John.
• Harkin, Marian.
• Hayes, Tom.
• Higgins, Michael D.
• Hogan, Phil.
• Howlin, Brendan.
• Kehoe, Paul.
• Lynch, Kathleen.
• McCormack, Padraic.
• McGinley, Dinny.
• McGrath, Finian.
• McGrath, Paul.
• Mitchell, Olivia.
• Moynihan-Cronin, Breeda.
• Murphy, Gerard.
• Neville, Dan.
• Ó Caoláin, Caoimhghín.
• O'Keeffe, Jim.
• O'Sullivan, Jan.
• Pattison, Seamus.
• Perry, John.
• Rabbitte, Pat.
• Ring, Michael.
• Ryan, Seán.
• Stanton, David.
• Upton, Mary.
• Wall, Jack.

Tellers: Tá, Deputies Hanafin and Kelleher; Níl, Deputies Durkan and Broughan.

Question declared carried.