Scrappage scheme costs jobs, worsens balance of payments and does not help environment

ACCORDING to figures from the Society of the Irish Motor Industry (SIMI), the scrappage scheme has cost the exchequer €15 million in lost revenue.

Ireland does not make cars, so the result is increased imports which have a negative effect on the balance of payments – the last thing we need in an economic recession. Very little work for a massive profit is involved in selling a new car. Employment in garages is almost entirely involved in repairing and maintaining old cars. New cars need little maintenance and repair so far more jobs will be lost due to scrappage than the number of salesmen’s jobs saved.

The energy cost in manufacturing a new car is about one tonne of oil. It is inevitable that people with new cars are going to drive more miles; there is no environmental benefit in scrappage. Finding ways of keeping old cars on the road would save motorists money and create jobs.