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Dáil Éireann díospóireacht -
Tuesday, 24 Feb 2004

Vol. 580 No. 5

Motor Vehicle (Duties and Licences) Bill 2004: Report Stage.

I move amendment No. 1:

In page 3, between lines 23 and 24, to insert the following:

2.—Insofar as additional payments are made to the Local Government Fund by virtue of this Act which, but for this Act, would not be made, such payments shall be applied to the construction, repair and maintenance of tertiary roads.

The purpose of the amendment is to provide that the increases in motor taxation provided for in this Bill will be ring-fenced for use in the repair, maintenance and construction of tertiary roads. Most of these roads are of the sort one typically finds in housing estates and, as I said on Committee Stage, are the most neglected in the country and are getting little attention from the Government. In response to my raising the issue last year, the Minister engaged a firm of consultants at a cost of approximately €750,000 to carry out a pavement study. This is daft idea because most local authority engineers are perfectly capable of giving the Minister a list of the tertiary roads which are in an unsatisfactory condition or in need of repair or reconstruction. I am baffled as to why it is necessary to engage a firm of consultants to carry out this study for the Government.

The reason is that local elections are coming up in June and the Minister knows that when his colleagues, who will be candidates for the Government parties, face the people living on these roads and using them every day, they will be asked why they are in such a state of disrepair and what will be done to fund their repair and reconstruction. The Minister's reply to his colleagues on this issue will be that the Government is carrying out a study on the issue to be completed in August after the local elections in order that no commitments can be given or extracted in advance of 11 June. I want a commitment from the Minister that these roads will be attended to.

Some time ago, the funding allocation for non-national roads was announced, at which time I asked questions, the answers to which I am still waiting for. I am sure Waterford city and county deserve every euro which has been allocated to them under the non-national roads allocations for 2004. The allocation to Waterford city is €10,637,000 and to the county is €10,293,000, which is a total of nearly €21 million. That notwithstanding, I do not understand why the entire city of Dublin gets approximately half the total allocation which the Minister for the Environment, Heritage and Local Government allocated to his own constituency. The allocation for non-national roads for Dublin city is €11.5 million.

Will the Minister of State explain why the entire city of Dublin gets just half the allocation which is being made to Waterford city and county or why the urban road authorities were allocated only 12% of the total allocation made under non-national roads. In these allocations I detect a bias by the Government against urban areas, which is reflected by the Government's failure in recent years to allocate sufficient money for the repair and maintenance of tertiary roads — the types of roads in housing estates about which I have been talking.

The Government is giving the two fingers to the overwhelming majority of the payers of motor taxation who live in the areas from which the NRA is getting the least amount of money and we need to see a remedy to that situation.

Before we decide on this amendment, will the Minister of State clarify if this money will be ring-fenced? I know it is being ring-fenced for spending by local authorities but on Committee Stage I observed that this money could be spent on such items as administration and other matters not directly related to the repair of roads, never mind the repair of the tertiary roads to which Deputy Gilmore refers in his amendment? Will the Minister of State assure us that this money is absolutely ring-fenced and will not be spent on the administration of any aspect of local government or the collection of road tax? If the money is not directed at new projects in local authority areas, the 5% rise in motor vehicle taxation is a new form of direct taxation, despite the promises made to the contrary in the programme for Government. In what way can local authorities disburse the money which will be raised as a result of the 5% increase in motor taxation?

I support Deputy Gilmore's amendment. How does the Minister of State describe this tax increase? Would it be fair to describe it as yet another stealth tax imposed on motorists? Does he agree that it is just another brick in the wall of an inequitable tax system which is affecting the poorest people most, while the better off can afford accountants for their systems of tax avoidance and evasion? What will motorists get for this 5% increase? I suspect it will be more bumper-to-bumper gridlock and more five mph crawling, as businesses wait for people to get to work. I wonder if that is fair. At more than double the rate of inflation, how can this 5% increase be justified at this time?

In addition to the charges through the tax system, motorists are suffering from parking charges, clamping and so on, all of which would be fine if motorists had an opportunity to leave their cars at home. Unfortunately, for people in rural Ireland that is clearly not the case and people are obliged to have a car and incur massive costs through insurance. These people are having that expense heaped upon by this 5% increase. In virtually any town, motorists experience excessive parking charges. Can the Minister of State justify any of this because people in rural Ireland have no option but to use private transport which is grossly unfair? I support Deputy Gilmore's amendment.

On Deputy Gilmore's amendment and ring-fencing for tertiary roads, as I said on Committee Stage, the amendment proposes to give primacy to tertiary roads in the context of extra revenue generated by the increases in motor tax set out in the Bill. I cannot accept the amendment as it would give statutory priority to a particular class of road. This would set an unwelcome and inflexible precedent. The non-national roads effort is based on a whole network approach which is bringing about quantifiable improvements to the network. I refer the House to section 13 of the Roads Act 1993, which places a legal responsibility on local authorities for the maintenance and construction of regional and local roads in their areas.

I do not believe it would be in the best interests of the road network as a whole to accept an amendment which would give priority to one type of road. That does not mean I do not sympathise with the efforts of Deputy Gilmore. Each Member of the House would take the view that more funding should be provided for tertiary roads, which make up almost 25% of non-national roads. This would be inflexible and it would interfere with the local democratic decision-making process currently operated by local authorities.

As I outlined on Committee Stage, the overall length of non-national roads is almost 87,500 kilometres, just over 20,000 of which are local tertiary roads. I acknowledge that 25% of the overall fund does not go towards these roads. The amendment, if accepted, would give absolute priority to local tertiary roads, which make up 23% of the national road network. The maintenance and improvement of non-national roads in the various areas is a matter for each local authority. Such works are funded from authorities' own resources, supplemented by the State grant from the Department. The initial selection and prioritisation of projects or works to be carried out under the various non-national road grant categories is a matter for local authorities.

The House will be aware that the restoration programme, which has been in place since 1995, aims to restore all regional and local roads which were deficient in 1996. We hope to have the work carried out by the end of 2005. The programme has been undertaken on foot of a multi-annual restoration programme prepared by councils and submitted to the Department. The local authorities are best placed to determine the priority to be accepted under the multi-annual programme.

There was a debate on the issue 12 months ago during the debate on the Motor Tax Bill. At the time, I indicated that a new pavement conditions study on national roads would be carried out under the pavement management system which commenced in 2003. This is just the second such study to be carried out. I believe we will get value for money. It is a question of inviting an independent company to carry out the study and to make recommendations. The purpose of the study is to ascertain the extent of deficiencies in the network. It will examine each class of non-national road, including tertiary roads.

I am not anxious at this time to introduce legislative rigidities or inflexibilities into the funding programme for non-national roads. I assure Deputy Gilmore that local tertiary roads will continue to receive attention into the future. Perhaps the recommendations which will come from the new pavement conditions study will recommend additional funding. We will look carefully at the recommendations. It is coincidental that the results of the study will be available in August 2004. On this side of the House, we are proud of the record allocations provided in recent years. Anyone who looks at this objectively will take the view that there have been vast improvements.

I am not defending the case in regard to tertiary road. On Committee Stage, reference was made to CLÁR funding. While funding is being provided, it does not resolve Deputy Gilmore's problem. I know he is looking at the bigger picture and not just his constituency. We are taking the matter seriously. It will be with the Minister for Community, Rural and Gaeltacht Affairs who will concentrate on class 2 and tertiary roads. This is an indication of our commitment in CLÁR-funded areas, which is not the whole country. I hope the situation will change as a result of this. I assure Deputy Gilmore that, together with the Minister, I will give the matter my personal attention. It amounts to 23% of the national roads network and it is important to the citizens who live along these roads.

Deputy McCormack raised the question of additional funding. We expect to raise the extra €34 million as a result of the increase of 5%. Every cent of the extra revenue generated by the increase in rates will be spent on non-national roads. The Deputy may have taken the view that all the €34 million will not go into roads. Of course, administration will be involved, but I estimate that practically all the money will be spent on roads. It should not result in any great overheads within local authorities. I will be disappointed if all the money does not go into roads.

On Deputy Morgan's point, the additional funding will be €34 million, which will be totally ring-fenced. It will go into the local government fund and will be spent entirely on the local roads network. This is not just the State grant allocation, there will be additional funding from the local authorities own resources. I made the point on Committee Stage that in future we will be very vigilant with a view to ensuring that local authorities maintain their levels of funding and increase their contributions by way of increases in line with inflation. The overall funding of €477 million provided by the Department is made up of €428 million from the local government fund and €48 million from the Exchequer. We are ahead of our projections on expenditure not just in the BMW region, but throughout the east and south. We are almost 15% ahead of the profile which has been established.

Deputy Gilmore asked about the allocation of €10,637,000 to the city of Waterford and €10,293,000 to the county as against €11.5 million to Dublin city. There was a significant increase in the allocation to Waterford city in 2003 due to an increase in the strategic non-national roads grants in 2004. Allocations for these grants can vary from one year to the next. As far as I am aware some major works in Waterford city were required to be carried out. I refer to the Tramore ring road. There was also the outer ring in Waterford city, which does not qualify for National Road Authority funding as it is a non-national road. It was a job that had to be done. I have no doubt that many other town councils and corporations require this type of funding. That was a job that had to be done and I would not attach any great significance to it.

I thank the Minister of State for answering the question on the comparison between Dublin city and the constituency of the Minister, Deputy Cullen. I am not drawing any conclusion from it but simply drawing attention to the conclusion that the taxpaying motorists of Dublin are likely to draw about where they rank in the Government's list of priorities when it comes to the allocation of roads money. No doubt the Minister of State's colleagues who will contest local elections across Dublin city in June will hear much about that. All I can do is pass on to them the Minister of State's explanation. They may say it is fine to provide a ring road for Waterford, but they may wonder about the road improvement schemes for which they have been waiting for years and where they rank in the Government's list of priorities. I am not drawing any conclusion; I will pass on to motorists the explanation the Minister of State has given and they can give their verdict on it on 11 June.

The Minister of State did not reply to my second question. He might give an explanation in that regard which equally I will be happy to pass on to the people concerned. The urban areas only got 12% of what was described as the biggest ever allocation of non-national road money for 2004. Can the Minister of State explain why the authorities in urban areas, I include all the cities and towns which have urban authorities, were given only 12% of the allocation.

I thank the Minister of State for clarifying the administration aspect. It was raised on Committee Stage and perhaps even on Second Stage that some of this money would go towards administration, expenses, wages, travel, etc. In respect of every job a local authority takes on, it has to allocate some of the grant towards the cost of implementing it despite the fact that the people who deal with such work are paid on a full-time basis and their wages are provided for in the Estimates. I hope none of the grant goes towards paying the benchmarking awards. The Department left local authorities short of funding to meet the payment of those awards. The authority in County Galway and Galway city was left short of more than €3 million to meet the increase in payments in respect of benchmarking, for which no provision was made at any level by the Department of the Environment, Heritage and Local Government.

Has a local authority that was allocated, say, €34 million a free hand in drawing up a plan for the spending of that money? Will an audit of its spending be carried out at the end of year? Will any official report on such spending to us, the people who are passing this legislation, which will crucify the motorists by imposing a 5% tax increase on top of all the other increases they have to bear? Will the spending of such money be reported to us or the Government, or will an audit of local authorities be carried out to outline where this money was spent? That is an important question we will have to answer as public representatives. If we have to sell this measure, as we and Government party councillors in particular will have to do so during the local elections, such reporting is necessary. I want an answer to that question.

I am very pleased to know about the grant aid of €20 million that was allocated to Waterford, and fair dues to the people there. Has any money been allocated to construction work on the outer bypass road in Galway city? We are talking about city authorities in the context of this amendment which relates to tertiary roads in city areas. Has any money been allocated for park and ride facilities which would help to reduce the number of cars in cities and represent a move towards keeping them traffic free?

The Deputy said he would give his constituents an answer, but I am sure he would be the first to tell them that in the case of the authority in Dún Laoghaire, the allocation increased from €8 million to €16 million between 1999 and 2001. Perhaps people in other urban areas wondered why that authority should have received a doubling of its allocation in that period. There must have been a demand for it and works must have had to be carried out. The authority in Waterford was not the only authority that received an increase in its allocation. Schemes in other areas that will benefit from the record allocation of 2004 include the Naas ring road, the Enfield-Edenderry road, the Castletroy distributory roads, the Trim-Dublin improvement scheme, the south Dublin outer ring road, the Wicklow town relief and port access road and the outer ring road in Waterford. There is a demand for such road works.

Deputy Gilmore referred to some authorities receiving only 12% of the allocation, but allocations cannot be given purely on a pro rata basis. If they were, we would be talking about an allocation of 12% for roads in urban areas. If the allocations were made on a pro rata basis in regard to road mileage, the tertiary roads would not be a problem for us in that 23% of the funding would go towards them. Many other factors have to be taken into consideration. Waterford benefited this year and other counties will benefit another year. However, many other areas also benefited this year. A scheme in my county to upgrade the famous back of Errigal road, which is supported by all parties, was allocated €15 million over a number of years and an allocation of €700,000 was made this year to complete that road. At times, it can seem that allocations to authorities are skewed, but there are times when some local authorities will benefit more than others.

I am sure the allocation for road works will be apportioned to the various schemes. The local government audit service prepares a report. The most recent Act introduced a local government local audit, similar to that of the Committee of Public Accounts. The local government audit service prepares a report each year, copies of which are available in the Oireachtas Library.

There must be a training course conducted by FÁS or one of the many consultant media agencies the Government engages on ministerial answers to be given by Ministers when they are asked a difficult question.

Were those courses in place when the Deputy's party was in Government?

They were not. We were more interested in spending the people's money on services for the people rather than on our own glorification.

The course was on tax avoidance.

Maybe that is why we are where we are, and they are where they are. It never ceases to amaze me that when asked a question, Ministers will reach for the millions. I asked the Minister of State a simple question, namely, to explain to the House why the urban authorities got only 12% of the non-national roads money allocated this year. Maybe there is an answer, but the Minister of State said that various authorities got so many millions, and a new relief road was built in south Dublin, and so on. That is not the answer. We know all that. The question was why urban authorities fared so badly in the allocation of money, and it has not been answered. I am not at all satisfied with the response by the Minister of State.

Fortunately enough, we can do the sum. If the urban authorities were to get12%, then on a pro rata basis they would be getting one eighth of the overall allocation, which would be a lot less than the funding they are currently receiving.

They are only getting 12%.

Amendment put and declared lost.

Amendments Nos. 2 and 3 are out of order. The latter is in conflict with the principle of the Bill and amounts to a direct negative.

I did not know until I came into the House this evening that my seven amendments had been ruled out of order. Some of the rules and long-standing traditions of this House remind me greatly of some of the Orange marching routes in Northern Ireland. They are long since out of date, and have been in need of review for a long time. When we are sent to this House by people to act on their behalf, scrutinise this legislation and put forward our amendments, it is disappointing that we do not get earlier notice of their disqualification. More reprehensible is the fact that they are not allowed to be debated on the floor of the House, because I thought this is what it is all about. I am learning fast that perhaps it is not. I appreciate the point made by Deputy Gilmore regarding the avoidance of answers by Ministers. Performance in that area leaves much to be desired.

Amendments Nos. 2 and 3 not moved.

Amendments Nos. 4 to 11, inclusive, are out of order.

I was never so out of order in my life.

It is as well that we spoke out of order on amendment No. 1, otherwise we would not have had a chance to speak at all. I will talk to my spokesperson regarding the tabling of amendments which are out of order, and not waste the Acting Chairman's time.

Amendments Nos. 4 to 11, inclusive, not moved.
Bill reported without amendment and received for final consideration.
Question, "That the Bill do now pass", put and declared carried.
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