[Article] Greens propose free childcare and end to VRT

Victor

http://home.eircom.net/content/irelandcom/topstories/9356937?view=Eircomnet

Greens propose free childcare and end to VRT
From:ireland.com
Thursday, 23rd November, 2006

The Green Party is to propose providing universal free pre-school childcare, the abolition of VRT on cars and the reform of stamp duty on houses.

In its pre-budget submission, to be published today, the party will outline a series of taxation and other spending measures, which are expected to be similar to those it would seek to have implemented if it forms part of a coalition government next year.

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As part of a package of proposals aimed at tackling the potential energy crisis and climate change, the Green Party has suggested personal tax relief for investment in renewable energy projects, grant aid for eco- friendly house construction, and grant aid for insulating existing houses.

The party has also proposed a radical reform of the motor taxation system. Vehicle registration tax and annual motor tax would be abolished under its proposals, to be replaced by additional excise duties and carbon levies on fossil fuels.

Chris_533976

Heh, anyone would have thought there was an election or something on soon

mike65

They've got my vote! Seriously though the move to taxing use over ownership is something I wholly approve of.

Mike.

ongarite

Sounds great, whats the catch? It aint going to be cheap for sure!!

Kashkai

Hang on a sec.....

I thought the Greenies hated cars - pollution and all.....

Abolishing VRT on cars is easy when they'll probably abolish cars as well.

Back to the horse and cart then:D

Alun

Well if they implement all their economic policies you probably won't have a job, and therefore no money to buy and run a car anyway.

Victor

ongarite wrote:

Sounds great, whats the catch? It aint going to be cheap for sure!!

It should be a revenue neutral exercise. The removal of VRT is offset by carbon taxes.

Macy

Prosperous Dave wrote:

I thought the Greenies hated cars - pollution and all.....

Hence the tax on consumption rather than new, more efficient cars?

SeanW

I believe it makes sense because realistically anyone who can afford a car will have one. And will need it at times too.

It makes sense to allow cars to be put on the road cheaply, but make it expensive to run, with paid parking, tolls, fuel taxes etc replacing "fixed" taxes like VRT, tax discs and all the rest.

corktina

Prosperous Dave wrote:

Hang on a sec.....

IBack to the horse and cart then:D

no..thats not green...unless the horses are fitted with huge bio-degradable Pampers...

Capt'n Midnight

Macy wrote:

Hence the tax on consumption rather than new, more efficient cars?

You can recycle cars, it's not as easy to recycle CO2

Overall it would be tax neutral, though there would be a hit as people in the border counties bought fuel on the other side.

Also smaller more efficient cars take up less space on the road. At present in Dublin many single lanes can take two rows of cars, especially if there is a queue for the right turn, this would help that.

dowlingm

govt would probably make a good bit of dosh just harmonising fuel taxes with NI to remove the advantage of nipping across the border either way.

Abolishing VRT in one go is not a good plan as it punishes people who bought cars for big VRT bucks and then hammers them with huge new fuel levies. Phasing out is the way to go - take the average age of a car, say 10 years, and reduce VRT using something like the following formula:

VRT_2007=(0.9xVRT_2006)*(1+consumer price index from 2006 and 2007)
VRT_2008=(0.8xVRT_2006)*(1+cpi from 2006 to 2008)

That way, VRT goes down 10% per year in real terms. Increase fuel levies accordingly until they hit NI levels.

To make up the difference: start by tolling all M-roads including M50 using a national system of transponders and licence plate readers rather than barriers if it can be done legally - it works as a carbon tax as speeds above 100km/h have disproportionate additional fuel burn - toll plazas also raise emissions.

Victor

dowlingm wrote:

govt would probably make a good bit of dosh just harmonising fuel taxes with NI to remove the advantage of nipping across the border either way.

I would like this, or certainly a reduction in the difference. Put the smugglers out of business (what ever about individual ´users´). However the Department of Finance really likes the subsidy given to Irish business and the tax take in our re-export of fuel.

Mucco

A large proportional of the emissions vehicles are responsible for arise from manufacture. VRT helps reduce car ownership, and therefore these emissions.

M

SeanW

realistically I don't think VRT reduces car ownership, if you need a car you need the car, you're going to buy one full stop. Even if it's just for weekends or whatever. So I don't think VRT does all that much. It's just a tax, plain and simple.

If you want to reduce driver-kilometres, there needs to be a disincentive for a cars use on a day-to-day basis.

professore

Macy wrote:

Hence the tax on consumption rather than new, more efficient cars?

Encourging people to dump old cars is not environmentally friendly - 1/2 the emissions of an average car is produced during it's production.

Sorry Mucco got there before me!

Victor

Mucco wrote:

A large proportional of the emissions vehicles are responsible for arise from manufacture. VRT helps reduce car ownership, and therefore these emissions.

Then tax carbon based fuels. Either cuts down on steel use or the manufacturers become greener.

Mucco

SeanW wrote:

realistically I don't think VRT reduces car ownership, if you need a car you need the car, you're going to buy one full stop. Even if it's just for weekends or whatever. So I don't think VRT does all that much. It's just a tax, plain and simple.

If an average car cost €100,000 would you still think that. Tax does affect behaviour.

If you want to reduce driver-kilometres, there needs to be a disincentive for a cars use on a day-to-day basis.

I agree, but keep VRT too.

Victor wrote:

Then tax carbon based fuels. Either cuts down on steel use or the manufacturers become greener.

Cars aren't manufactured in Ireland.

Victor

Mucco wrote:

Cars aren't manufactured in Ireland.

Then apply an implied figure to it, putting price on the amounts of palstic, steel, glass, rubber, etc. And make sure it all adds up to the sale price

Potentially, do it along the lines of a competitive WEEE scheme.

Ice_Box

High levels of VRT just makes people buy older more dangerous cars and less fuel efficient cars. Safety should not be taxed as a luxury. If the average new car cost 100,000 people would just be very old cars like they do in third world countries.

SeanW

Or emigrate.