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Written by Fran Newton, 03/07/2009

Plans to class caravans as holiday homes and levy a tax on their owners in the Republic of Ireland have been scrapped.

Environment minister John Gormley announced on Wednesday that the unpopular plan would not be going ahead, sparing caravan insurance customers a €200 (£171) payment.

A spokesman for the Green Party leader said the U-turn had been made in the interest of "equity and fairness".

"Most mobile homes are in caravan parks and the owners of these already pay rates and pay for water services," he continued.

"In the light of that, it was considered that it would be unfair for local authorities to also ask mobile home owners to pay local charges on top of the charges already being paid by those who own the parks."

Meanwhile, the Environmental Agency has warned that caravan insurance customers are not being sufficiently warned about the danger of parking their vehicles on riverbanks and coastal sites.

It called for warning signs to be erected in this area and for instructions for the best course of action for caravan owners in a flood emergency to be laid out.

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