SIMI call for scrappage scheme to boost motor industry
The Society of the Irish Motor Industry (SIMI) has called for the Government to reinstate the scrappage scheme in the upcoming Budget for motorists in order to boost the motoring industry.
Alan Nolan, Director General of the SIMI, the introduction of a new scrappage scheme would benefit the Government as well as the motor industry by generating additional tax revenues from car sales, while also safeguarding jobs within the industry.
This year to date shows a drop of 17.5% in total new car registrations according to recent SIMI statistics.
The impact of this dramatic decline in car sales is being felt with the loss of jobs within the industry.
The recent IIEA report launched by Minister John Gormley highlighted the necessity for Ireland to step up its efforts to reduce its carbon emissions.
The SIMI’s Director General Alan Nolan points out that an environmentally focused scrappage scheme would be an excellent opportunity for the Government, the Motor Industry and motorists to work together to make a ‘greener’ choice by incentivising the trade-in of cars over ten years old against a low emissions new car (Categories A. B and C) which would help in the drive to reduce CO2 from cars in use on our roads.
Such an initiative would “kick start” the new car market and would help give a much needed boost to consumer confidence.
Mr Nolan said: "It is undoubtedly a changed and challenging market place for our members and we are certainly feeling it. We are strongly urging the Government to take into account the difficulties that the motor industry has suffered this year, following the changes to VRT and road tax and to look at adopting this creative approach which would deliver increased VRT and VAT revenues while helping the sector to recover in terms of sales in the first half of next year."
