Following Dr. Peter Bacon’s presentation of his report on the Irish Motor Industry, in which he recommends the introduction of a car Scrappage Scheme, the recommendation for a Scrappage stimulus for the market is gaining support elsewhere.
Describing the Scrappage Scheme as a “no-brainer” at the Friends First Quarterly Economic Outlook held today, Jim Power made the argument that the government would gain as much as €50million if not more in VAT and VRT were they to implement the scheme in the forthcoming Budget.
The argument has been made that without a motor manufacturing industry, a scrappage scheme would be supporting industries outside of Ireland, but as Mr. Power points out that, “with no balance of payments constraint, that would be a price worth paying. Furthermore, a newer car stock would improve safety and reduce carbon emissions.”
SIMI Director General Alan Nolan, commented, “We greatly appreciate the support of Jim Power and with two weeks remaining to the Budget, we hope the government are taking heed of the recommendations of respected professionals Dr. Bacon and Mr. Jim Power when they are making their decisions.”
Nolan continued, “These expert views underline the arguments the Society has been making in its Pre-Budget submission. We echo the words of Jim Power, this is a no-brainer.”