‘We are bitterly disappointed at Lord Mandelson’s recent comments where he rejected the possibility of continuing the vehicle scrappage scheme without even the courtesy of a meeting with the industry to discuss the issue,’ says Paul Williams, Chairman of the RMI National Franchised Dealers Association (NFDA), the trade body for new car dealers.
Williams’ comments follow Lord Mandelson’s reported rejection of an extension for the vehicle scrappage scheme.
‘The NFDA is still waiting for confirmation of a meeting with Government to discuss an extension of the scheme,’ continues Williams.
Latest Government figures show that 195,009 cars and light vans have been ordered through the scrappage scheme since it went live on 18 May 2009. With sales continuing to grow, the Government’s £300m funding for the scheme is expected to be exhausted before the end of the year.
According to Williams, continuation of the scheme should not cost the taxpayer anything: ‘Because scrappage sales are purely incremental, the VAT earned on them has made it a self funded scheme. Indeed, if VAT were to increase Government could be in receipt of a surplus.’
Williams adds: ‘To say the scheme has been successful since its introduction would be a massive understatement. but with the retail economic climate still fragile and an increase in VAT scheduled for 1 January 2010, an extension of the initiative is vital.’