Motorists used as 'old reliable': AA

Motorists have been hammered in the Budget with total tax increases of €230m, equating to €125 per year for every motorist in the country, according to the Automobile Association.

The increase in excise duty (5c including VAT) on petrol and diesel is likely to net the Irish economy €200m.

This is in addition to the 5% increase in car tax announced last month, which will add another €30m to the motorists’ burden.

According to AA public affairs manager Conor Faughnan: "This is a dreadful Budget for motorists. We already contribute €3.8bn to the exchequer - now that figure tops €4bn.

"Faughnan also said that he believed the Minister was being "overly optimistic" in predicting that the measures would only add 0.4% to the Consumer Price Index (CPI).

"We pay a fortune in taxes and we are entitled to insist that that money is spent carefully and properly. The Minister owes motorists a better deal. We have been abused once again as an 'old reliable'", he concluded.

On a more optimistic note, the AA welcomed the Minister’s initiatives on budgetary control for infrastructure projects.