asked the Minister for Finance if, in view of the hardships being imposed on the motor industry by reason of the recent hire purchase restrictions and the two increases in price over the last 12 months as a result of application of wholesale tax, he will consider waiving the latest hire purchase regulations in respect of motor vehicles.
Ceisteanna—Questions. Oral Answers. - Hire Purchase Restrictions.
47.
I have explained to the House, in reply to other questions on 10th February the circumstances which have made it necessary to impose the latest hire purchase restrictions. Transactions relating to cars account for a very substantial part—some 40 per cent—of expenditure on hire purchase and similar transactions as a whole. Consequently, the new restrictions could not be waived for cars without largely defeating the purpose for which they were imposed.
Lorries, tractors, vans and other commercial vehicles, which represent a sizeable part of the business of the motor industry, have been exempted from all hire-purchase restrictions. This is as far as I can go at present. I may add that the figures of new car registrations indicate that output in each of the last two years substantially exceeded output in 1967.
Is the Parliamentary Secretary aware that at the moment between levy, wholesale tax, turnover tax and all other kinds of taxation the amount of taxation levied on a new car is about 33 per cent? Is he aware that because people have had to buy more cars they need more cars in this modern society and that they are actually taxed to the extent of 33? per cent on each new purchase?
Hire purchase advances amount to £17.1 million out of a total of £40 million and——
I am referring to the other part of the question.
I have nothing further to add to the replies given on the 4th and 10th of February.
I hope the people will know where the money goes.