Irish spend tax on roads
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• The Irish Government has decided that from next year increased road taxes are to be spent exclusively on upgrading the nation's roads—.a move that the UK Government has long resisted.
Road tax in the Republic is to be increased by 30.ii this year and by a further 3% at the beginning of 1999. This inflation-linked funding will amount to £590m in 1999, including a guaranteed I:270m from central government. It will be made available to local councils for spending from next year.
Environment Minister Noel Dempsey says: "A clear link is being created between motor tax and spending on the upkeep of the road network. Central Government will not be able to erode it by imposing extra obligations without providing the extra resources."
Welcoming the proposal, the 1RHA's Jimmy Quinn says: "Hauliers would have no problem in paying a small increase in taxation if it was going to eliminate the burden of truck maintenance such as replacing springs costing up to £500. It would benefit a haulier's business in the long run."
A separate £328m will be spent this year on secondary roads-18% of the network needs resurfacing.