Select Committee on Finance and General Affairs díospóireacht -
Thursday, 25 Apr 1996

SECTION 60.

Question proposed: "That section 60 stand part of the Bill".

Mr. McCreevy

I do not claim to be an expert in the area of vehicle and registration tax and customs and excise. However, I received representations from the Irish Motor Caravanners' Club which welcome the changes made to VRT in this section but believe that a further change should be made to level matters. I understand that cars and caravans are in the same category — A — for VRT. In addition, they pay road tax on the cc of the engine, similar to cars.

I am advised that, as a result of the Finance Bill, for VRT purposes motor caravans are taken out of category A, which is welcomed by the Irish Motor Caravanners' Club which has fought hard to have this done, but that the logical extension to the road tax proviso is not being made. I understand that section 60 would be the appropriate section to include an amendment to this effect. I did not move one, because I would prefer the Minister to consider such a change.

Mr. M. McDowell

I also received representation from Mr. Murphy, Director of Marketing and Strategy, Henry Ford of Cork.

Mr. McCreevy

I also received correspondence from him.

Mr. Quinn

The family business.

Mr. M. McDowell

It started off as one. He was concerned about what he considered unfair discrimination as between four wheel drive vehicles. Some have a VRT rate of £40, whereas one of his products has a VRT rate of £2,512. He claims there is no discernible difference between the two vehicles other than that the load length of a Rover Discovery commercial vehicle is slightly under two metres whereas in the case of the latter, his own vehicle, it is slightly over 2 metres.

The Minister's amendment No. 70 to section 61, refers to the floor area to the rear of the driver's seat as being less than two metres in length when measured in such manner as may be approved by the commissioners, and that there is a proviso in relation to some vehicles. Has the Minister catered for Mr. Murphy's worries?

Mr. Quinn

I cannot help but refer to the observation set out in the famous slogan that the anarchist organisation produced on one occasion regarding parliamentary democracy and universal suffrage to the effect that one should not vote on the basis that one only encourages politicians.

Mrs. O'Rourke

The more votes there are the better. I would be all for encouragement.

Mr. Quinn

Having made a concession the inevitable question is whether a little more can be done. There is, however, a logic in Deputy McCreevy's remarks. If the category is changed on one side the logical consequence of this should go through. I am prepared to look at it, but it would probably be in the context of next year rather than this year.

Mr. McCreevy

I assume the tax loss would not be great. Perhaps the Minister has some figures in this respect? Would the tax loss be significant?

Acting Chairman

The Minister's amendment is in respect of section 61.

Mr. Quinn

If we dispose of this section I can respond to the Deputy.

Question put and agreed to.