TalkingMotors reports that scrappage scheme proposals have come under fire from Brian Spratt, chief executive of The Automotive Distribution Federation.
“It’s a misuse of taxpayers’ pounds to purchase and crush perfectly serviceable vehicles, and it’s a nonsense to think it will meet any long term goal of boosting new car sales. As a sensible idea it is a non-runner,” he said.
Obviously his views may be biased in favour of his members businesses but he makes the same point as MTI in our recent article “Will a scrappage scheme have the desired effect?” when he says “the proposals also ignore the simple fact that any cash payment will be of little practical value to low-income motorists, who will still not be able to afford to purchase new vehicles, let alone more fuel efficient or cleaner vehicles, with any money provided.”
He goes on to say that it may be better to “force responsibility” and get “motorists to maintain cars properly” We can see where he is coming from and a scrappage scheme clearly isn’t the cut and dried solution some may have us believe.
Mr Spratt also points out that the much trumpeted success of similar schemes in Europe have in actual fact “distorted the market by bringing forward sales but causing slumps later.