June 5, 2009

The Telegraph believes the government’s scrappage scheme may be “descending into confusion and farce.”

The thinking-person’s Daily Mail claims, somewhat convolutedly, that the scheme is “dogged by so many infuriating and contradictory twists and turns that the controversial incentive programme lacks credibility and is in real danger of falling into disrepute.”

Part of the problem, the paper claims, was the belated revelation that half of the promised £2,000 per customer would come not from the chancellor but from beleaguered dealers, with whom there appears to have been little or no consultation prior to launch.

Responding to the scheme’s announcement in April’s budget, the Society of Motor Manufacturers said it was “good news for buyers” but insisted ‚ in direct contradiction of the messages coming from government ‚ that cars would need to be “taxed, insured and MoT’d” before being accepted.

Last month, after appearing for a time to accept that if the government wasn’t going to insist they wouldn’t either, SMMT again stated that any vehicle must be MOT’d (or have been so within the last 14 days) and have valid insurance and tax.

But the Telegraph claims the Treasury, Department for Business, state-run and consumer bodies, the AA and RAC make no mention of any requirement for tax or insurance.

“The scrappage route is right for perhaps only less than one per cent of drivers in Britain,” the paper concludes. “Motorists should find out what their cars are worth on the used market before they glibly allow them to be crushed.” Is the scheme, it wonders, more trouble than it is worth?

Ending on a positive note, however, the report notes that Rolls Royce has signed up to participate in the scrappage initiative. “So that’s £2,000 off a £271,000 Phantom,” it observes wryly.



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