Vol. 440 No. 7
35 Mr. J. O'Keeffe asked the Minister for Tourism and Trade his views on the development of car rentals as an essential ingredient of tourism; whether he has satisfied himself with the system as it presently operates; and his policy and proposals, if any, on this issue.
The car rental sector is an important part of the Irish tourism product. A number of measures have been introduced in recent years to counter the problems of price and availability in the car hire sector. These included the special grant scheme in 1992, the vehicle registration tax scheme in 1993 and the retention of this scheme this year.
The measures introduced in the 1993 budget in relation to the application of vehicle registration tax in the car hire sector were aimed primarily at addressing shortages in the car hire fleet, particularly in the peak season. These measures proved very successful in this respect and there were adequate hire cars available throughout 1993. There is also evidence that they impacted positively on price, in that the increased fleet size led to a more competitive environment among the operators.
The retention of this feature in this year's budget, combined with the reduction in vehicle registration tax rates, is a very welcome development which will help to maintain the momentum already generated towards making this sector more competitive. In addition, the general budgetary provisions, such as reduced PRSI rates, aimed at improving the business environment generally, will also benefit the car rental sector.
