SCRAPPAGE INCENTIVE SCHEME

That this House calls on the Government to introduce a scrappage incentive scheme; notes that such a scheme, as supported by Unite and the Society of Motor Manufacturers and Traders, would incentivise owners of cars and vans over nine years old to scrap their vehicle in exchange for £2,000 towards a new or nearly-new car or van; recognises the success of similar schemes introduced in other European countries, particularly in Germany, which has boosted the new car market, increasing registrations by 21.5 per cent. in February 2009, giving the first year-on-year monthly rise since July 2008; believes that the potential increased value added tax revenue to Government would largely offset the cost of the scheme; further believes that this measure would be popular with the public, with 76 per cent. of consumers being in favour of its introduction; and calls on the Government to urgently introduce a scrappage scheme to give a much needed boost to the new vehicle market and automotive sector in the UK and, importantly, the 800,000 people that work in it.