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Online poll: Should the Government extend the scrappage scheme?

Comments from the poll:
Extend for both business and environmental concerns and broaden to cover the top brands that are providing increased
environmental performance.

 If it was right to start, then it is right to continue, but perhaps with more emphasis on net “green” outcome per transaction. This Government never thinks things through, so was too late starting and will now be too inflexible to refine the project for the right outcomes.It’s not costing the Government any money as they get it back in the VAT, so the scheme should be extended.

Has the Government calculated the cost in loss of revenue due to the scheme? MoT fees for three years on thousands of old cars and there will be thousands of repair jobs missing. There’s also less VAT on used car sales as thousands are taken out of the market place.

The dire consequences of continuing the scrappage scheme can be illustrated by looking at the collapse of the French new car market in 1996/97 after the prolongation of the Balladur scrappage scheme with the Juppe scrappage scheme. Once the Juppe scheme stopped the market dropped by 40% overnight and whole dealer groups went bust. Germany is heading the same way when its scrappage scheme ends in 2010.

Certainly should be extended and preferably increased to give the full £2,000 from the Government. Seeing that the German and French economy are now out of recession, can the Government not see it is partly because of how they are managing the crisis, including the scrappage scheme?

It’s been the lifeblood of car sales since May. Keep it on – we really need it.

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