Motorists could face price hikes to fund road safety

The Government has been advised to increase driving licence and car testing fees, hike penalties for dangerous road users and expand direct exchequer funding of road safety amid a series of dire financial warnings about the Road Safety Authority (RSA).
A final copy of an external review into the agency, seen by The Irish Times, says there is a “risk of insufficient resources and focus” being allocated to road safety and education.
It also recommends a wider overhaul of the agency and the transfer of some functions into the Department of Transport, which had been expected.
The report by consultancy firm Indecon also details growing financial pressure at the RSA, outlining that the annual deficit is expected to rise from around €20 million this year to nearly €45 million in 2033, with a deficit in several operational areas.
“But for the Authority’s accumulated reserves, which shortly are likely to be depleted, no funding would be available for critical road safety functions,” the report warns.
The consultancy firm has found that the existing model is unsustainable and recommended wide-ranging changes.
In the short term, it advises that there should be a “small increase in fees” combined with ring-fenced exchequer funding for public interest road safety activities.
On fees, which have not increased since 2011-2012, it finds that they should be set to ensure that customer focused activities – like the driving licence service and the national car testing system – are self sustainable and cost reflective.
It argues that the cost of road safety promotion and education should be funded by the exchequer.
Its analysis suggests that “the existing model is not sustainable and radical changes are required. In the short term, a small increase in fees, combined with exchequer ring-fenced funding for public interest road safety activities, would be appropriate”.
It argues that for customer services to be sustainable, the RSA “is likely to require an increase in fees in 2025 and modest increases in subsequent years”.
The report says increases should be conditional on substantially meeting service level targets, where performance has slipped in recent years.
The prospect of introducing higher fees on the eve of an election and amid ongoing cost of living pressures would likely prove politically contentious. It comes against the backdrop of a significant increase in road traffic deaths in recent years.
The report outlines the need for legislative change and “changes in penalties faced by dangerous road users” and for “appropriate levels of penalties, policing and detection”.
Government sources said that higher fees for motorists may be offset by a greater increase in fees charged to hauliers on the basis they can be written off by such firms, although this would undoubtedly provoke a backlash from that industry.
The report finds that while the RSA is the lead agency for the road safety strategy, there is a need for “greater central government involvement” in co-ordinating activities across 19 different bodies.
It proposes transferring public interest activities back into the department and leaving the RSA to look after NCT, driver testing and other operational services.
The report is likely to be considered by Cabinet in the coming weeks, before the general election. It outlines that under the status quo, the RSA has to fund its activities primarily from charges from motorists.
“As a result, there is a risk of insufficient funds being available for road safety promotion education and co-ordination.”
It says that one organisation providing services like NCT and driver testing, and being responsible for road safety promotion, and co-ordination across different bodies is “problematic”.
The objective of the reorganisation is to achieve the aims of the road safety strategy, which runs to 2030.