Fianna Fáil TD for Laois Sean Fleming says motorists will be surprised to learn that the money they pay on motor tax is no longer spent on the upkeep and maintenance of roads.
Up to recently the practice had always been that motor tax receipts were paid into the Local Government Fund and distributed directly to Local Authorities for spending on roads. However the Government broke this link on the 1st January of this year.
Deputy Fleming said that at the recent Public Accounts Committee meeting senior officials from the Department of Housing, Planning and Local Government confirmed that this change took place on the 1st January 2018.
Deputy Fleming said, “They money raised through motor tax is now paid directly to the Revenue Commissioners, like all other taxation. This means the money people spend on motor tax is no longer being spent on the upkeep and maintenance of roads.
“This policy change has far reaching implications. There is now a new serious risk that central Government will not always provide the funding needed for the repair, maintenance and upkeep of local roads.”