Lenihan to consider scrappage scheme

MINISTER FOR Finance Brian Lenihan has told the Fianna Fáil parliamentary party he will consider the possibility of introducing some incentive for a scrappage scheme when framing next month’s budget.

Mr Lenihan was responding to a motion calling for a scrappage scheme to be introduced to counter the slump in new car sales during 2008 and 2009.

The motion was co-sponsored by Wexford deputy Sean Connick and Cork South Central TD Michael McGrath. It attracted the support of 30 Fianna Fáil TDs.

After last night’s meeting, Mr Connick said Mr Lenihan had said he would consider it, and signalled he was willing to look at the Vehicle Registration Tax (VRT) situation that has reportedly left car dealers at a price disadvantage when exporting cars from Ireland to the UK.

He said the downturn has been particularly vicious for the car industry, with car sales down by over 63 per cent, leading to a €1 billion slide in revenue.

The motion was put at the end of last night’s meeting and was seconded by Mattie McGrath from Tipperary South.

Mr Connick and Mr McGrath spoke on the motion, and Mr Lenihan then responded.

“He said he is certainly going to consider it. He is also looking at the situation facing dealers who are trying to export cars to the UK, who are at a disadvantage,” Mr Connick said.