Mandelson aid admission
LORD Mandelson has admitted that cash support for car makers was taking too long to arrive.
The business secretary made the admission in an interview with the BBC – where he assured car dealers that progress was being made.
No decision has yet been made on the introduction of a scrappage scheme, but the Bank of England and Treasury are ‘doing their best’.
He pointed the finger at the Bank of England for being the main party at fault for delays.
Mandelson pointed to January’s £2.3 billion package of cash support for the car industry, as evidence that action is being taken. He revealed that, thus far, only one car maker had approached Government for aid.
‘The discussions are nonetheless making progress,’ Mandelson told the BBC.
‘I hope that it will be possible to help those car financing arms, because that goes hand in hand with our other efforts to boost this market and give a shot in the arm for the demand for cars.’
The BBC’s political man Gary O’Donoghue reckoned Mandelson’s words would increase pressure on the Bank of England and Treasury to get things moving and start rolling out the incentive schemes.
Does this mean a scrappage scheme is now a step closer?