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Special Committee on the Finance Bill, 1992 debate -
Tuesday, 12 May 1992

SECTION 131.

I move amendment No. 106:

In page 147, subsection (2) (a), line 6, after "weight" to insert "and which do not have a load capacity exceeding 2.5 cubic metres (European Din)".

Deputy Hilliard made the case — this is the amendment that gives effect to what he wants — so I would like to hear the Minister's reply.

The restructuring of duty on commercial vehicles, that is category B vehicles — has the twin objectives of (1) alleviating the excise duty for goods vehicles that are exclusively used for business purposes, particularly those engaged in international haulage, and (2) addressing the problem of substitution of light commercial vehicles for private cars to the detriment of revenues from this latter course. The definition put in place in the budget was designed to meet these objectives. I realise that any definition of this type may give rise to complaints in respect of particular vehicles that are perceived by some to be penalised because they are subject to tax, as they happen to fall on the wrong side of the technical divide. Everybody in the Dáil, if not in the entire Oireachtas, seems to have been lobbied by one group and I have spent some time talking to them also. In solving one problem, it is easy to create several others, because it depends on where one draws the line. The important thing is not to take into sole account one commercial company that has lobbied everybody, perhaps to the detriment of many other companies, it has put forward arguments that may not be correct, says that it is Exchequer neutral when it is not, and says that large numbers of jobs are jeopardised when they do not seem to be. I am prepared to look at some of the issues. One of the more persuasive arguments put forward by the company is that they could lose the considerable number of State contracts they now enjoy to suppliers of Japanese built cars. On examining this argument, I concluded that it would also damage Opel. Members have been told by this company that no difficulties would arise for other motor companies but this has not been said to me or to any officials in my Department. Giving in to this lobby would do considerable damage and put Opel on the wrong side of the line. I will look at the definition again on Report Stage. In doing this I must make sure that a new definition will not create similar problems by drawing a line through the middle of another group of haulage vehicles. I want to make sure that any new definition given will not undermine what was achieved in the budget in relation to vans, jeeps and so on. I have noted some of the arguments and if I can revise the section in such a way that will not entail huge costs or disadvantage another group who put forward the same arguments, I will indicate that on Report Stage.

Amendment, by leave, withdrawn.
Amendment No. 107 not moved.
Section 131 agreed to.
Sections 132 to 134, inclusive, agreed to.
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