THE GOVERNMENT has cut the Budget allocation for road safety by about €4 million to €40 million for 2009, and provided for just half of the estimated €20 million cost of the privatised speed camera system.
Commenting on the allocations yesterday, Noel Ahern, Minister of State with responsibility for Road Safety, said the €40 million could be topped up by money received from applications for the driving test and other receipts such as driving licence fees, which go directly to the central exchequer.
This amounts to €17 million to €20 million annually and a portion could be diverted, if it was necessary, to increase the allocation to cover, for example, the continued outsourcing of driver testing, he said.
While funding of the privatised speed camera system is a matter for the Department of Justice, Minister for Transport Noel Dempsey said the €10 million allocation would see the contract fully utilised for the second half of 2009.
Among the major Budget measures impacting on motorists was an 8 cent rise in excise on a litre of petrol; a rise of between 4 and 5 per cent in motor tax and a new €200 levy on car park spaces for city centre employees.
Petrol prices were affected from midnight, with excise rising to 52 cent a litre and a 0.5 per cent rise in VAT to 21.5 per cent.
There was no rise in the duty on diesel, while the Minister made no reference to changes on the price of biofuels.
The Minister for Transport, Noel Dempsey, said the decision not to increase the price of diesel was in response to the position of hauliers, "who have had a difficult 18 months".
Along with the rise in VAT which will push up new car prices and servicing costs, motor tax for cars registered before January 1st last year will rise by 4 per cent for cars with engines under 2.5-litres and 5 per cent for cars with engines larger than that.
For cars registered since January 1st, the emissions-based motor tax will rise by 4 per cent for cars with emissions up to 170g/km - bands A to D - and 5 per cent on cars with emissions over that - bands E to G.
The new €200 parking levy will be charged to employees whose employer provides them with car parking facilities in major urban areas.
The fee applies to employees rather than the space, so each of those sharing a space will be charged €200.
Mr Lenihan also announced a change in the benefit-in-kind system to take into account CO2 emissions. The details will be published in the Finance Bill in the coming months.