asked the Minister for Finance if he will review and amend where necessary the rate of excise tax on imported motorcycles.

The question of reducing the effective rate of tax on motorcycles was carefully considered on foot of representations in the context of the budget 1979 and again in the context of the restructuring of excise duty and VAT on such vehicles which took place on 1 March 1979. A tax concession for motorcycles which would have to be compensated for by the general body of taxpayers would not be justified at this time.

Is the Minister not aware that the reduction in the balance of payments problem created by the more general availability of motor cycles as a mode of transport would more than compensate for any immediate loss to the Exchequer by removing or altering the savage rate of excise tax on these vehicles? This would also help to relieve traffic congestion on our roads.

The Deputy could add energy conservation as well. I doubt very much whether there is a substitution effect between motor cycles and motor cars. I do not think the market bears that out. As the Deputy will be aware, there are factors such as changing consumer preference, an increasing awareness of the danger attached to motor cycling, the cost of insurance, which affect this. However, the Deputy may not be aware of the fact that the figures indicate that there has been a steady decrease over a number of years in regard to the registration of new motor cycles——

That is because of the VAT.

——until 1978, when the provisional figures indicate that for the first time for a number of years there has been an upward trend rather than a downward trend.

Would the Minister keep the situation under review? Does he not accept that the present rate of excise tax on these vehicles is considerably higher than the equivalent figure for cars?

Yes, and I am prepared to keep the position under review. I am conscious of certain dangers even from an employment point of view which are involved in this and, with that in mind, I am prepared to keep it under review.