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Car 'scrappage' scheme launch call

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The Government is being urged to introduce a "scrappage" scheme which would see motorists get paid to trade in their used vehicles to give 09 registration sales a boost.

Car insurance provider AA wants to see the scheme, which is currently in operation in a number of European countries, introduced sooner rather than later.

Last month business secretary Lord Mandelson said ministers were considering such a scheme to help increase sales and reach greenhouse gas reduction targets.

Lord Mandelson's Department for Business, Enterprise and Regulatory Reform (BERR) said a decision had not been made as to whether or not scrappage would be introduced in this country and added it was still unsure if it would give value for money.

Motorists in Germany get 2,500 Euros (£2,211) for trading in a vehicle which is more than nine years old and in France drivers can get up to 1,000 Euros (£885).

Paul Watters, AA head of public affairs, said: "The AA says that there is no time to lose in introducing a scrappage scheme which is adopted policy in a large number of European countries.

"We must give a boost to the sale of new cars which are cleaner and safer than the ones they replace."

© Press Association 2009