Friday, February 6, 2009
Bailout for the environment
Ministers are actively considering a "scrappage" incentive scheme, similar to those already introduced in a number of European Union countries. Motorists could receive cash payments from the Government of up to £2,000 to trade in their old gas guzzler for a new eco-friendly model, says Mandy. It would be introduced as an emergency measure during the recession, and would have the additional benefit of helping the industry to reach the Government's green targets. In Germany, where drivers receive 2,500 euros (£2,325) to trade in cars older than nine years, hundreds of thousands of extra car sales are expected as a direct result of the scrappage scheme.