Minister defends car tax increase

The Minister for the Environment defended the increased tax on cars and the manner of its introduction.

Mr Cullen told the Dáil that 60 per cent of cars were under 1,400 cc and the increased motor tax for them worked out at between 4.1 and 8.2 cent a day. The measures were approved in the Dáil by 70 votes to 53.

News of the increased tax emerged two days after the Budget was announced, but Mr Cullen said motor-tax rises were never announced on budget day when the rainbow coalition was in government.

"It was always separate and for a good reason. This is a separate taxation matter, it has to do with local government, not the central Exchequer," he insisted as the Opposition condemned the increases.

"People cannot have it both ways," he said.

"No Minister wants to increase taxes. However, if the Government is to lead hard decisions must be made. I took the decision to increase motor-tax rates because I believe it is necessary to protect and to develop our non-national roads system."

Fine Gael's environment spokesman, Mr Bernard Allen, derided the Minister for having "the neck to justify the increase by saying that the money will improve the financial state of local authorities and will help them out with their non-national road maintenance programme". Mr Cullen, he went on, had reduced that spending by 27 per cent. "This increase will take €60 million from the motorists of Ireland." He questioned "how much will end up in improving the non-national roads of Ireland".

Mr Ciarán Cuffe (Greens, Dún Laoghaire) said the charge was a "blunt, annual tax on all those who possess a car". He said a much better way of taxing "would be to tax on the basis of mileage".

Dr Jerry Cowley (Ind, Mayo) said "the galling part of all of this is that it will probably make no difference to the non-national roads. If it did, we would all be in favour of it but we are too cynical after years of neglect."