Tax boost for car sales rejected
THE LONDON MOTOR SHOW
Friday 20 October 1995
Ian Lang, President of the Board of Trade, yesterday disappointed the motor industry by rejecting calls for tax incentives to boost the sale of new cars.
Leading executives had asked the Government to introduce a so-called scrappage subsidy, to encourage motorists to trade in old cars for new ones, in next month's Budget. But Mr Lang, whose Motor Show press conference was abandoned in disarray after protests by anti-car demonstrators, said: "There is no intention to start a scrappage subsidy."
His comment is the clearest statement yet of the Government's position after the Society of Motor Manufacturers and Traders submitted proposals for a subsidy to the Chancellor last month. One car executive said yesterday: "If Mr Lang can't see the sense of a subsidy, then no one in the Government is going to push it through."
A scrappage tax in France has boosted sales by an estimated 240,000 and has also been successful in Spain. Ian McAllister, chairman of Ford UK, has been a strong supporter of a subsidy for scrapping cars aged 10 years or older, saying this week that it would improve the environment if more old cars were taken off the road.
The RAC estimates that the number of cars on the road that were more than 10 years old rose to 7.4 million last year from 4.9 million in 1986 because the recession had suppressed consumer demand. Richard Parham, managing director of Peugeot UK, has proposed a graded subsidy of between pounds 500 and pounds 800 depending on the size of new car bought.
Not everyone in the industry was concerned by Mr Mr Lang's comments. Charlie Golden, managing director of Vauxhall, believes a subsidy would be a short-term gimmick. And John Towers, chief executive of Rover, said: "If the industry sells on just one point of advantage - price - then we are wasting our time."
Meanwhile Alex Trotman, chairman and chief executive of Ford, warned of the threat posed by South Korean car manufacturers. With companies like Daewoo making significant inroads in Europe, Mr Trotman described the country as the new Japan.
He said that 100,000 cars were exported from South Korea to Europe last year, but the target was to reach 500,000 by the end of the decade. This new "hyper competition" would be "far tougher than anything anyone has experienced in the past, here in Britain, in the US, or wherever."
- 1 Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 Israel's propaganda machine is finally starting to misfire
- 5 'Hello mum, this is going to be hard for you to read ...'
Sally Farmiloe dead: Howards' Way actress, and former mistress of Jeffrey Archer, dies aged 60
Justin Bieber posts Instagram photo of Orlando Bloom crying after fight 'over Miranda Kerr'
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Disney heiress Abigail disowns her share of family profits in West Bank company
Australian model Robyn Lawley stages naked protest against huge coal mine seven times the size of Sydney Harbour
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
- < Previous
- Next >
iJobs Money & Business
£20000 - £24000 per annum: Harrington Starr: A leading provider of web based m...
£28000 - £32000 per annum: Ashdown Group: Secretary (Sales Team Support) - Mat...
Competitive (DOE): Guru Careers: We are looking for an Assistant Management Ac...
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...