Abercrombie wrote:
I was listening to the Today programme (as you do), and I overheard a
proposal that would mean an economic catastrophe for me. Perhaps that's
a bit strong, but I'll lay it out and let you decide.
Anyway, it was from a bloke from the British Association of Motor
Traders, or some group like that. They were wanting a “scrapage
subsidy”, so that people would be rewarded for getting rid of perfectly
good motors, if they would buy a new one. He wanted 2000 pounds a car,
and he was hoping that this would move the backlog of unwanted new
cars.
I'm of the opinion that the best way to move the backlog of unwanted
new cars is to have a sale. That is how merchants sell product that is
on their hands. The idea of a “scrapage subsidy” would affect us in bad
ways:
First, it would replace perfectly good vehicles with new ones. The
factories would continue to spew out CO2 at a time when we should be
doing all we can to reduce it. The traders argue that new cars are more
efficient, but this is very marginal – they are talking of cars that
are only 9 years old, which already have electronic engine management
systems, catalytic converters and which have good fuel efficiency.
Basically, it is better (within reason) to keep the 9 to 15 year old
cars going.
Second, many of us “fenners” need access to affordable vehicles. The
“scrapage subsidy” would remove the supply of ageing but decent cars,
making it dearer for poorer people to get about. The government has
already caused a fiasco with the abolition of the 10p rate, which hit
poor people hard. This “scrapage subsidy” would remove the supply of
affordable cars, making them even more hard up. I recently lost my job
in Cambridge, and I make weekly commutes to a new (but poorer paid) job
in L'pool. I need cheap cars to carry on like this, or it's not worth
it.
Third, a whole industry exists in keeping the older cars maintained.
They need exhausts, brakes, tyres, MOTs, batteries, etc. It would cause
wide scale unemployment among the multitude of small businesses that
depend on a continuous revenue stream from keeping the older cars
going. I call this “bangernomics” (although the cars are far from
“bangers” really). Many people need these older cars.
Fourth, we don't want the government to help out with “planned
obsolescence”. Cars can and should easily last longer than 9 years. I
don't want to contribute to the “throw away society”. The makers need
to be told to make more durable cars, and not told to make them last 9
years, 'coz they'll be scrapped then.
Fifth, it's a bad idea to subsidise industry anyway. Basically, the
taxpayer is maxed out with helping busted banks. If any industry should
be helped, it is the education industry, so that we can teach people to
avoid these pitfalls in the future.
Many thanks considering my views. I hear you're stepping down at the
next election, and I'm moving to L'pool sometime soon. But you've done
a great job as MP, so thanks for that as well.
I fear that I must agree wholeheartedly with you on this occasion!
Making a scrap car worth £2k will effectively make it impossible for anyone to spend less than £2k on getting mobile. Speaking as someone who splashed out £375 on his current car, that's not exactly good news! I bought an identical one with terminal rust for £75 to cannibalise for spares (and a nice leather interior) - I guess that's never going to happen again! This government just can't seem to stop itself spouting about the need for restraint, prudence and living within our means whilst continuing to shaft the thrifty! We, (the thrifty!) are already bailing out those who chose to live beyond their means over the last few years, and now we see that our reward for "financial prudence" is to watch our savings depreciate faster than a top-of-the-range Merc on its first trip out of the showroom! As if that wasn't bad enough, us motoring "Wombles" who pick the carcasses of unwanted cars (re-use being more efficient than ANY recycling programme!) are being rewarded by having our access to such vehicles cut off (or made to cost £2k - which amounts to the same thing)!
Have you sent the letter yet? If not, I might be able to get you some numbers to put in it. (Not sure that saying you DRIVE an old vehicle from Norfolk to Liverpool was a good idea though)!