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Buses: Government Assistance

Volume 497: debated on Tuesday 13 October 2009

To ask the Minister of State, Department for Transport if he will estimate the cost to the public purse of introducing and operating for a 12-month period a scrappage scheme for buses akin to that recently introduced in respect of cars. (289301)

The cost of a scrappage scheme would vary depending on the design, for example what age of bus it would apply to and the size of the incentive, as well as the market response to the scheme. Rather than introduce a scrappage scheme, we have announced a fund to support the purchase of new low carbon buses. The Green Bus Fund will provide government funding of £30 million over the next two years and is expected to lead to the introduction and operation of several hundred new low carbon buses in England.

As part of the assessment criteria for the Green Bus Fund, bidders will be given credit for any older buses they intend to replace with the new low carbon bus. This will therefore meet the objectives of a scrappage scheme with the added benefit that all the new buses will contribute towards reducing carbon dioxide emissions.