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Proposals to government on vehicle scrappage

The motor industry is getting behind proposals for a vehicle scrappage policy, after sending a paper of ideas to Lord Mandelson.

Suggestions from the Retail Motor Industry Federation (RMIF) for implementation of a car and light van scrappage scheme include:

  • Should apply to cars and light vans producing more than 150g/km CO2 and over eight years old
  • Needs to be a worthwhile incentive, i.e. £2000 as it needs to be worth more than the likely trade-value for the car
  • The scheme must be set at a level to promote customer buying new cars, therefore reducing high CO2 emissions.
  • The vehicle needs to be destroyed so not to further pollute. The car dealer should arrange for collection and scrapping. A certificate of destruction from the dismantlers will 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.

RMIF said advantages would include reduction in CO2 emissions and increased sales tax from car sales for the government.

Society of Manufacturers and Motor Traders (SMMT) also said it was 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.

An RMIF spokesman could not say when a reply was expected from Lord Mandelson. Sue Robinson, RMIF trade associations director will meet Angela Eagle MP, Exchequer Secretary to discuss the issue on 24 February.

It 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.



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