| The German experience has been mixed and raises | | | | to scrap those vehicles, it would be more appropriate |
| some serious concerns. | | | | not to place a requirement to scrap a vehicle. Instead, |
| Firstly; the typical owners of these older cars would | | | | let the older vehicles enter the used car market |
| usually be in the market for a 3 to 6 year old car on | | | | naturally. Then market will naturally dictate which |
| replacement. By incentivising these people to buy a | | | | vehicles will be popular for resale. By natural selection, |
| 'new' vehicle, it has jeopardised the livelihood of many | | | | it will be those vehicles which are less desire-able, in |
| used car dealers. A number of whom have gone out | | | | poorer condition or with greater running costs and |
| of business as a direct consequence of the resulting | | | | punitive high emission road tax that will end up on an |
| loss of trade which has switched to the new car | | | | accelerated path to the scrap yard, without any |
| dealerships. | | | | cumbersome bureaucratic input. |
| Secondly; this incentive is funded by 'all' of Germany's | | | | Thirdly; it will favour any manufacturer who is |
| tax payers, yet many of the new cars being bought | | | | committed to providing vehicles that meet the lower |
| under the scheme are manufactured in other countries, | | | | CO2 emissions. |
| thus the benefit to the German economy directly is | | | | Fourthly; it will reduce the risk of swinging the car |
| marginal at best. | | | | market unfairly in the favour of new car dealers, as it |
| Thirdly; an incentive which requires the older vehicle to | | | | will still leave a healthy, though transformed, used car |
| be scrapped is deeply flawed. Effectively a 10 year old | | | | market. |
| car in very good condition could be scrapped, yet | | | | Fifthly; the system for such tax breaks are already in |
| many similar aged or older cars will be left on the road | | | | place at HMRC (for businesses) and would not require |
| in much worse condition and their owners will be | | | | a completely new department to run it. Thus saving |
| deprived from being able to replace these cars with | | | | more money. |
| the 'superior' condition vehicles as they will have been | | | | Finally; this methodology will not dictate as to which |
| scrapped. | | | | form the 'eco friendly' vehicles should take. For |
| So what is the alternative. I would suggest that for a | | | | example, by not imposing blinkered incentives which |
| limited period until the economy is back on its feet, it | | | | favour electric or hybrid cars, it will leave the motor |
| would be far more effective and far better for the | | | | industry to use its skills to develop a wider range of |
| cash flow of the public purse not to provide a grant. | | | | technologies and forms of propulsion, including |
| Instead, 'anyone' who buys a vehicle which meets | | | | Hydrogen fuel cells, smaller supercharged and |
| certain eco standards, should be able to benefit from | | | | turbocharged engines, regenerative braking systems |
| the same tax benefits afforded to business owners of | | | | and stop-start technologies, to meet our needs in the |
| vehicles. That is to say, an annual Income Tax offset | | | | future. |
| of 20% of the value of the vehicle where the CO2 | | | | I have to say I do not hold out a great deal of hope on |
| emissions are below 160g/km and 10% where the | | | | this, as I believe there is a lack of forward vision and |
| CO2 emissions are greater than 160g/km. | | | | the ability to think of the bigger picture amongst those |
| The above would have several advantages. | | | | whom we have charged with running our country. |
| Firstly; the cost to the public purse will be spread over | | | | For those of you who are approaching or in retirement, |
| a longer period. | | | | it is actually possible to use Pensions legislation to get |
| Secondly; rather than being restricted to those who | | | | the tax man to pay for your new car! If you want to |
| own vehicles in excess of 9 yrs old and requiring them | | | | know how, write to me or call me. |