Law could hike up price of cars as industry free to pass on cost of scrappage

MOTORISTS could face higher prices for new cars following the introduction of scrappage laws that require all vehicles to be given a “death certificate” and dismantled for recycling.

The Scrap Car Regulations say a network of approved scrapyards and recycling centres must be funded by the motor industry and that car owners must not be charged for bringing vehicles for disposal.

But the regulations do not prohibit the motor industry from adding the cost of the scheme to the original price of a new vehicle.

Irish motorists already pay among the highest car prices in Europe and Conor Faughnan of AA Ireland said any further increase would be unwelcome.

“The aims and ambitions of the scrappage scheme are something we would all agree with but it will place considerable costs on industry and that money has to come from somewhere,” he said.

The scheme is meant to ensure cars are scrapped in regulated facilities instead of randomly dumped, at that the bulk of their components are either recycled or safely disposed of.

Making the announcement, Minister for the Environment Dick Roche said the new rules would require participating scrapyards to invest in their facilities.

No spokesperson for the Society of the Irish Motor Industry (SIMI) was available yesterday but the organisation’s chief executive, Cyril McHugh, has warned previously that he could not rule out the possibility of extra costs for consumers.

Mr Roche introduced a scrappage scheme for electronic items last year which is also industry-funded and imposes no disposal fees on consumers but the cost is usually factored in at the time of purchase of a new item.

By law, where that cost is applied it must be labelled an “environmental management cost” (EMC) and specified on the price tag along with the normal retail price. The Scrap Car Regulations make no such provision so where costs might be added, the consumer would not know how much they were paying.

A Department of Environment spokesman said both schemes were implemented in line with EU directives.

“There is nothing to suggest the motor industry will pass the costs on the consumer,” the spokesman said.

“The cost is nominal in the overall scheme of things and there is money to be made from the scrap metal so I don’t think it should become a burden on the consumer.”