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Motor Vehicles: Manufacturing Industries

Volume 495: debated on Monday 29 June 2009

To ask the Minister of State, Department for Business, Innovation and Skills what assessment he has made of the effects of the vehicle scrappage scheme on the second-hand car market; and if he will make a statement. (281999)

[holding answer 23 June 2009]: The vehicle scrappage scheme is a targeted, time-limited action with a capped budget designed to help the whole motor trade. It was limited to make sure its benefits are balanced with the needs of other sectors of the car industry including the second hand market and repair businesses, and of manufacturers of other consumer durables. Over 74,000 orders for new vehicles have been taken since the scheme was announced in the Budget in April.

To ask the Minister of State, Department for Business, Innovation and Skills what estimate he has made of the increase in car sales attributable to the introduction of the car scrappage scheme; and what percentage of this increase is represented by vehicles produced in the UK. (282550)

Over 74,000 orders for new vehicles have been taken since the scrappage scheme was announced in the Budget in April. It is too early to give an estimate of how many of these orders are attributable to the scrappage scheme and what percentage of these are produced in the UK.

To ask the Minister of State, Department for Business, Innovation and Skills what consideration was given to the merits of introducing a vehicle scrappage incentive scheme based on a vehicle’s carbon dioxide emissions. (282551)

[holding answer 26 June 2009]: The scrappage scheme was primarily designed to boost the automotive industry and restore consumer confidence not as a green measure. However, we believe that there will be some benefits for the environment as old vehicles are replaced by newer, by and large more fuel-efficient models. A summary of the wide range of Government initiatives aimed at reducing carbon dioxide emissions from road vehicles was set out in our “Ultra-Low Carbon Vehicles in the UK” strategy published on 16 April 2009.