Government to discuss UK scrappage scheme

Retail Motor Industry Federation director Sue Robinson is to meet ministers on February 24 to discuss the possible launch of a vehicle scrappage scheme in the UK.

Ms Robinson will meet Exchequer Secretary to the Treasury Angela Eagle to discuss the issue. She is also speaking to opposition parties about the matter including Mark Prisk MP, who has responsibility for the motor industry within the Conservative Shadow business team.

The motor industry has been calling for a scrappage scheme to be launched in a bid to kick start sales of new cars and vans.

In a letter to the Governmment, the RMI has proposed that:

A scheme should apply to cars and light vans producing more than 150 g/km CO2 and over eight years old

There needs to be a worthwhile incentive, i.e. £2,000 as it needs to be worth more than the likely trade value for the vehicle

The scheme must be set at a level to promote customer buying new cars, therefore reducing high CO2 emissions.

Vehicles need to be destroyed so not to further pollute. The car dealer should arrange for collection and scrapping. A certificate of destruction from the dismantlersshould be provided to claim the incentive for the customer and prove the car cannot go back into service and pollute.

The scheme must be self funding.

It needs to exist for a meaningful period of time, such as one year.

The Society of Manufacturers and Motor Traders is also in direct contact with the government about vehicle scrappage proposals and while it has not seen RMIF suggestions, it expected its own to be along a similar line.

Source: AM-Online