Dáil Éireann Debate, Thursday - 7 October 2021
185. Deputy Michael Healy-Rae asked the Minister for Transport his views on a series of matters regarding the taxation of vehicles (details supplied) in rural areas; and if he will make a statement on the matter. [48951/21]
View answerIn terms of specific vehicle-related taxes, I have policy responsibility for motor tax, however VRT (including the NOx charge), fuel taxes (including the carbon tax element and VAT) and benefit-in-kind for company cars are a matter for my colleague the Minister for Finance.
In terms of environmental policy, the Programme for Government 2020 contains a commitment to an average of a 7% reduction in greenhouse gas emissions year-on-year from 2021 to 2030 and to achieving net zero emissions by 2050. The transport sector currently accounts for 20% of Ireland’s greenhouse gas emissions levels and a reduction in emissions levels in the sector, through a combination of taxation and incentivisation, will form a key part of achieving that target. Road Traffic usage represents 96% of those emissions. In this regard, the CO2-based motor tax system for private cars, which comprise the bulk of the vehicle fleet, is structured in such a way as to incentivise the uptake of electric and lower CO2-emitting vehicles, with these attracting lower motor tax rates than higher emitting vehicles.
The Climate Action Plan 2021 which is due to be published shortly will chart a course to achieve these targets by 2030 and it will include specific and challenging measures in that regard. The overall target here is very ambitious and will require a mix policy interventions and significant behavioural change, taking account of their relative impact on mobility options, including social, rural and urban impacts.
Electrification of the national fleet, significant investment in improving public transport options, ramping up walking and cycling infrastructure for short distances, increasing biofuels in the existing fleet and improved engine efficiencies will all play a significant role. Finally, demand management, or reducing the need to travel by private car, will also be key. I am very aware that this is the most challenging element since it will impose restrictions on current travel behaviours.
I am fully aware of the importance of finding a path to reduce emissions without removing people’s access to travel, transport and services. Measures such as working from home and using online tools to access services will become more prevalent and usual with the digitilisation of our economy and society. Many of the trips we currently take and services we currently access in person can be accessed through online means. I am also very encouraged by proposals for 15 minute neighbourhoods, so that most of the key services people need can be accessed within 15 minutes of their home, so curtailing the need to travel long distances by car. We need to reduce emissions as a country because of the global crisis we are facing as a planet. However, we need to do so in a way that does not negatively impact people’s lives and wellbeing.
As set out in the recently published National Development Plan, the Government is committed to strengthening rural economies and communities and enhancing regional accessibility, with a range of investments proposed in new and existing public transport infrastructure. The Plan also commits to significant investment in the land transport network and the upcoming National Investment Framework for Transport in Ireland will set out the priorities for investment in the land transport network. The National Transport Authority’s Connecting Ireland rural mobility plan aims to improve access to towns and cities for those in rural areas by improving existing bus services, increasing capacity and adding new bus services, and builds on from the Authority’s TFI Local Link, which provides access to essential, educational and leisure services in rural areas.
The Government’s Rural Development Policy 2021 – 2025, “Our Rural Future”, also commits to improved and accessible public transport in rural areas and to the piloting of new rural transport initiatives.
Further, it should be noted that the National Development Plan commits to continuing investment in improving access to remote working facilities, enabling people to work in rural areas, thereby potentially reducing the need for car journeys for commuting purposes. It is becoming increasingly clear that over the coming years we must all undergo a transformational change how and why we travel if we are to meaningfully tackle the climate crisis.
