Originally Posted by Rave
Dear Mr ****,
It has been widely reported in the news media that the government is
considering introducing a 'scrappage' scheme whereby the owners of old
cars will be given a discount of £2000 against the purchase of a new
car. I am writing to express my strong opposition to the introduction
of such a scheme.
There are many reasons to oppose the scheme- the benefits to our car
manufacturing industry are likely to be marginal and provide poor value
for taxpayer's money, and the claims made about the environmental
benefits are extremely dubious. However, my most serious concern, and
the one that I think should be of most concern to a Labour MP, is the
distorting effect the scheme is likely to have on the secondhand car
market. If the government are offering a voucher worth £2000 in
exchange for an old car, then that is likely to make the market value
of all old cars £2000, for obvious reasons. At the moment is is
possible to purchase a roadworthy secondhand car for £500 or less. If
the price of these cars suddenly jumps to £2000 then a lot of young
people and/or those on lower incomes will no longer be able to afford
to buy a car which they may well rely on to get to work, run a small
business, or care for other family members. Incidences of car theft and
driving without insurance are likely to rise.
In effect, a scrappage scheme would mean the government using
taxpayer's money to compete with the poorest people in society in order
to price them out of a valuable commodity.
I hope you will join me in opposing this scheme, and that you will pass
on this communication to the relevant minister.
Yours sincerely,