Motor Industry group cites VRT as big factor in purchase price

An Oireachtas Committee heard on Wednesday, May 31st that Government tax on new cars was discouraging safety features being fitted.

The Society of Irish Motor Industry claimed that Vehicle Registration Tax (VRT) can significantly increase the overall purchase price. SIMI chief executive Cyril McHugh was speaking at a discussion on reform of the insurance market with FBD Insurance, the Financial Regulator and IBEC.

He told the Oireachtas Committee on Enterprise and Small Business that subjecting safety features on a 1900cc family car meant VRT at 30 per cent and added 43 per cent to the cost.
All new cars now have to have softer fronts as a pedestrian protection measure.
McHugh stated that features such as anti-lock brake systems can help drivers avoid crashes.
“Older vehicles tend to be more likely to be involved in accidents, either due to poor maintenance, mechanical breakdown or the inexperience of drivers.

“These improvements to car design are estimated to be capable of reducing pedestrian fatalities by up to 10% and reducing serious injuries to pedestrians by 20%,” he said.
He added that mechanical factors were only responsible for a small percentage of road accidents. Driver error, pedestrian error and road conditions were the main causes.