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Dáil Éireann Debate, Thursday - 27 February 2014

Thursday, 27 February 2014

Questions (52)

Luke 'Ming' Flanagan

Question:

52. Deputy Luke 'Ming' Flanagan asked the Minister for Finance the reason there is a three week delay in processing VRT applications; if his attention has been drawn to the fact that these delays cause serious problems for vehicle dealers and customers alike and that this delay lengthens the transaction period by up to three weeks, effectively making it impossible for vehicle importers-dealers to hand over the vehicle for a further three weeks after agreeing a sale; his views that there has to be a more efficient way of doing this; and if he will make a statement on the matter. [10185/14]

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Written answers

I am informed by the Revenue Commissioners that following a procurement process carried out during 2008, in accordance with the public sector procurement rules, Applus Car Testing Limited (who also have responsibility for the operation of the National Car Testing Service (NCTS)) were appointed and authorised to carry out specified registration functions in relation to the operation of VRT and have been performing those functions in the State since 1 September 2010.

In the early months of the operation of the new system Revenue and the NCTS faced some challenges in relation to the delays in getting appointments.  These challenges were addressed in a number of ways.  The NCTS put procedures in place to provide additional capacity in their centres, including extending the opening times in some centres and adding a number of other centres to deal with VRT.  In recognition that there was a unique requirement for authorised motor dealers Revenue provided electronic facilities for the registration of used vehicles that have been subjected to a pre-registration examination.  The pre-registration examination is restricted to motor dealers and allows a motor dealer to have vehicles pre-inspected, entered onto the Revenue computer system and then registered on-line as sales are made.  An appointment for pre-inspection can be made in person at an NCTS Centre, through the centralised booking service using a national local rate number, through the Applus web-based booking system or by fax or post.  I am informed by the Revenue Commissioners that approximately 50% of all used vehicles registered by motor dealers in 2013 used this system and the lead time for bookings is less than 5 days.

I am further informed by the Revenue Commissioners that there was an untypical delay in a number of NCTS Centres in the west and northwest over the past 2 weeks.  Revenue discussed this matter with NCTS operations management who had already taken steps to resolve the delay by training and deploying additional resources and increasing capacity (for example, one of the Centres has increased its capacity from 2 days per week to 4/5 days).  I am informed by the Revenue Commissioners that the Centres in question are normally two of the better service providers in the network and that this delay was highly unusual. Overall, the average lead time for appointments at NCTS Centres is 6.3 days (though it should be noted there can be little or no waiting time where bookings that are made directly at the NCTS Centres and a place is available through cancellation).

The Deputy may be aware that there has been a surge in vehicle registrations since the beginning of the year that is reflected in both new and used car sales.  This has obviously led to a spike in demand at NCTS Centres.  Revenue is acutely aware that this demand puts pressure on motor dealers and is actively working with NCTS management to ensure that this demand is met.  Revenue is confident that the measures that have been put in place will ensure the continuing provision of an efficient and effective service.

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