Nissan boost as Lord Mandelson annouces scrappage extension
Sep 29 2009 by William Green, The Journal
“The scheme has provided a welcome boost during what has, and continues to be, a highly challenging period for all car manufacturers,” added a spokeswoman.
Blaydon MP Dave Anderson described the announcement as “great news” and added: “I think it is good for people in work, for people selling cars, people building cars. It is good for the economy. And it is exactly the thing we have got to do to keep people in jobs and keep the economy moving, which is the total opposite to what our opponents would do.”
Andrew Sugden, director of policy at the North East Chamber of Commerce, said: “That is great news and we would welcome that. It has given a real boost to the automotive industry in the North East.”
Under the new announcement, the Government will work with manufacturers to allow van owners to trade in for a newer model after eight years rather than 10 years. The age rule for cars is also being pushed back by six months for vehicles registered on or before February 29, 2000.
The original scheme has seen 227,750 orders placed so far but that figure could now rise to 400,000 – although it will still end by next February or sooner if cash runs out.
TUC general secretary Brendan Barber said: “This is a very welcome move. The economy is still in a very fragile state. Cutting off support of this kind or making cuts in spending could easily choke off the few precarious signs of recovery.”
AA president Edmund King said road safety, businesses, less well-off motorists and the environment would benefit.
“It has also generated VAT revenue for the Government to make the scheme nearly self-financing and wipe out most of the impact on the taxpayer – VAT on a £7,000 car is £913, which with the £55 new car tax compares with the £1,000 government grant for each vehicle,” he said.
