Dealers’ scrap snub
September 11th, 2009 by Richard Aucock
SCRAPPAGE extensions have reportedly now been rejected by Lord Mandelson, reports the NFDA.
This has ‘bitterly disappointed’ RMI NFDA chairman Paul Williams.
Particularly as it came ‘without even the courtesy of a meeting with the industry to discuss the issue.’
Car dealers have been calling for a meeting with Government for some time now, to discuss the scrappage scheme. They’re still waiting.
It’s not even as if extending the scheme would cost anything. ‘Because scrappage sales are purely incremental, the VAT earned on them has made it a self-funded scheme.
‘Indeed, if VAT were to increase Government could be in receipt of a surplus.’
Which, of course, it will do on 1 January – by 2.5 percent.
‘To say the scheme has been successful since its introduction would be a massive understatement.
‘But, with the retail economic climate still fragile, and an increase in VAT scheduled for 1 January 2010, an extension of the initiative is vital.’
Tags: mandelson, new car scrap, nfda, rmi, scrappage
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