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Governments Scrappage Scheme takes shape

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Issued 27/04/2009 

The Business Department today met with the car industry to outline the arrangements of the scrappage scheme which will be launched in mid-May.

The 300 million scheme, announced in the Budget last week, is designed to boost the automotive industry and restore consumer confidence. The government is introducing a 2,000 incentive to consumers for scrapping their cars and vans 10 or more years old in return for buying a brand new vehicle.

The aim of today's seminar was to help the car industry, which will be running the scheme, to finalise their preparations.

Business Secretary, Lord Mandelson said: "The scheme has been designed to be as simple as possible so we have kept the number of restrictions for consumers to a minimum. We also want to keep it straightforward for the car industry which has to administer the scheme, and there will be checks in place to ensure the scheme is not abused.

"I welcome the level of interest from car manufacturers that have already said they are keen to sign up to the voluntary scheme and look forward to seeing them benefit from more new buyers very soon."

Notes

1. The 2,000 incentive is 1,000 of government funding matched by 1,000 from industry.

2. Light commercial vehicles up to 3.5 tonnes are included in the scheme.

3. Information about the scheme can be found at http://www.direct.gov.uk.


About the Author

Crown Copyright. Material taken from the BERR- Department for Business, Enterprise and Regulatory Reform replacing DTI - Department for Trade and Industry. Reproduced under the terms and conditions of the Click-Use Licence.


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Article Published/Sorted/Amended on Scopulus 2009-05-12 13:30:35 in Business Articles

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