MPs Back Scrappage Scheme
A cross party group of 25 MPs has written to Business Secretary, Peter Mandelson, asking for immediate action to support the vehicle component industry, including a car scrappage scheme like the systems that have been successfully running in Germany and France. According to the department for Business, Enterprise and Regulatory Reform (BERR), the component industry employs some 100,000 people who now face a bleak future because of the economic downturn. However, the group of MPs suggest that targeted measures could help turn the situation around.
The highest profile suggestion is for an “appropriately structured scrappage scheme” subsidising the replacement of old cars in favour of newer more environmentally friendly models. However, the MPs all back support for car finance to stimulate the demand side; improving access to credit and liquidity; and sharing the burden of continuing to employ staff between employees, employers and the government.