Car VRT ‘discourages safety features’

CRIPPLING Government tax on new cars discourages essential safety features being fitted, an Oireachtas committee said yesterday.

The Society of the Irish Motor Industry claimed Vehicle Registration Tax (VRT) imposed on technology like airbags and side-impact bars can add thousands of euro to the overall purchase price.

SIMI chief executive Cyril McHugh told the Oireachtas Committee on Enterprise and Small Business: “Subjecting safety features on a 1900cc family car incurs VRT at 30% and adds 43% to the cost.

“Even at the lowest VRT rate (22.5%), the increase in cost to the end user is almost 30% and this is where the cost issues are most significant in the price-conscious small car sector, and where the need for safety is greatest.

“Safety features must be made as affordable as possible for car buyers.”

He said having VRT imposed on airbags has prevented multiple airbags from being standard in the smaller car sector, depriving young and vulnerable drivers of enhanced protection.

He was speaking during a discussion on reform of the insurance market with FBD Insurance, the Financial Regulator and IBEC.

Mr McHugh added: “Older vehicles tend to be more likely to be involved in accidents, either due to poor maintenance, mechanical breakdown or the inexperience of drivers.”

He said anti-lock brake systems, traction control systems and electronic stability controls can help drivers avoid crashes.

EU regulations now require all new cars to have softer fronts as a pedestrian protection measure.

“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 noted.

Mr McHugh also called for supervised racing tracks for boy racers to take them off our roads.

“Sweden provided facilities for boy racers to race in a supervised atmosphere.

“They will be able to come in and show off all their extras and gimmicks in a controlled atmosphere.

“It is be something that is worth looking at because it gives them an outlet.”

He also said mechanical factors were only responsible for 0.2% of all road collisions after driver error (88%), pedestrian error (8%) and road conditions (1.8%).