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MORE CARROT, NOT JUST THE STICK, MOTOR INDUSTRY TELLS GOVERNMENT
It''s now more than a year since new car buyers received government grants to buy cleaner vehicles. The collapse of the Powershift grant scheme last year - and lack of any replacement – created uncertainty for manufacturers and consumers. Sales of new petrol/gas cars plummeted as a result, down from 3,185 cars in 2003 to just 489 last year. ''Buyers need incentives to drive the market for cleaner new cars. New technology, better consumer information and taxation also have a role to play but punitive taxes alone are not the solution'', commented SMMT chief executive Christopher Macgowan. He added, ''There are a whole host of cars on the market featuring a range of technologies from hybrids and bio-ethanol to cleaner biodiesel and LPG models. Government needs to be careful to support all options and not to favour one technological solution over all others.''
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