Support for Scrappage
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Wednesday December 02 2009
FOLLOWING economist 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 prospect of 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, 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.
SIMI Director General Alan Nolan said he hoped the government 'are taking heed of the recommendations of respected professionals Dr. Bacon and Mr. Jim Power when they are making their decisions.'
