Budget For Motorists 'Could Have Been Worse'
The Budget on 7 April was the most traumatic we have had in years. For middle income earners it will cost roughly the equivalent of a month’s wages in a year, which will be brought home to people when they receive their pay packets at the end of May. With all the big issues, the ordinary motorist could have been affected worse. Read what the AA made of it from the motorists’ point of view...
Insurance levy & diesel increase disappointing
Motorists will be relieved that there was no increase in petrol prices in the budget, although the diesel increase will affect about 17% of drivers and will also hit commercial road users hard. The AA estimates that the average diesel motorist will pay an extra €90 per annum.
"The cost of motoring does not just affect motorists." Says Director of Policy Conor Faughnan. "It affects the cost of living for almost every household in the country. Fuel cost rises also add to the cost of business, affecting virtually every product and service produced in the Irish economy."
The AA is particularly disappointed that the levy on motor insurance is to increase from 2% to 3%.
"The timing on this could hardly have been worse as the cost of motor insurance is rising rapidly." Says Faughnan. "Motorists all over the country are noticing significant price increases already and the government’s actions have just made that situation worse."
On Infrastructure projects
"The government has essentially kicked to touch on this issue, and that is not a criticism. The major part of the spend for projects like Metro North and the Luas extensions would not have happened this year in any case. Keeping the projects at least notionally on target will not affect the exchequer in 2009. We can all hope that the financial situation will improve by next year."
On Scrappage
The AA had hoped that the government would announce a scrappage scheme in an effort to stimulate car sales. So far this year new car sales have fallen off a cliff. Registrations are down 66%, revenue is down over 80% as people who are buying are opting for smaller cars.
The AA supports industry calls for a scrappage scheme. It makes perfect sense to help people to buy cleaner cars and this would provide a much needed boost to sales, an increase in exchequer revenue and will speed up the trend of cars becoming cleaner and greener.
More information is available at www.aaireland.ie/news.