Metals recyclers and vehicle dismantlers have criticised a lack of direct communication from the government about exactly how the £300 million vehicle scrappage scheme which is being officially introduced today (May 18) will affect them.
Speaking to letsrecycle.com, key figures in the sector said that questions remained over exactly who was eligible to benefit from the introduction of the scheme, which sees consumers handed a £2,000 discount on the cost of a new vehicles when they scrap a car or van which is over 10 years old.
Duncan Wemyss, secretary of the Motor Vehicles Dismantlers Association, said: “The only information we have received on the matter is a government press release released at the time which doesn't specify which ATFs can handle the vehicles only the process which is required. Therefore it is the people who are operating the scheme which appears to be the dealerships on behalf of the manufacturer.”
“But we have advised members, some who are in compliance schemes some who aren't, to make it known to local dealerships their availability and legality to process and issue certificates of destruction and if it is the wish of the dealership to use them then they are there to serve them and offer the benefits of service,” he added.
One metals recycler told letsrecycle.com that he also had concerns about how much information has been provided by the government about how the scheme would affect them.
“To be honest we are now waiting to see how it operates,” he said. “We have had little to no information from the government on this, we have tried to find out how it is going to work and we have had back a big fat zero.”
“There is quite a lot to get right on this and it is quite clear from where we are sitting that the car manufacturers and the government have been talking about how it is going to work from the 18th of May, which is a date I never heard about but it was just pushed out, but the rest of us have not been involved in those discussions and we have been completely in the dark,” he added.
In a statement on the route that vehicles will take, a spokeswoman for BERR said: “I can confirm that the cars under the scrappage scheme will be treated in the same way by manufacturers as they are under the end of life obligations which means they will have to use authorised treatment facilities.”
While the scrappage scheme was broadly welcomed by the vehicle dismantling sector when it was unveiled in Chancellor Alistair Darling's Budget last month, concerns were raised then about exactly how the scheme would work on the ground (see letsrecycle.com story).
Welcome
However, some vehicle dismantlers have praised the introduction of the scheme as a “good initiative” which could help the motor industry.
Richard Reynolds, national contracts manager at London-based vehicle dismantling firm Redcorn, said: “The proof of the pudding will be in the eating. Obviously we are optimistic but, at the end of the day, we are cautious. We are geared up and if it does go very, very well we are more than capable to handle whatever vehicles we can get out of various dealerships.”
However, Mr Reynolds did raise concerns about the scope of the scheme and claimed that it could potentially benefit from lowering the age at which cars or vans become eligible.
He said: “Ten years is a little long. I would have thought they could have come in about to six years, when a vehicle reaches 10 years these days it is virtually on its last legs. I think if they wanted to make a big impact they should have said about six years and that would have been far better.”
Mandelson
Introducing the scheme, Business Secretary Peter Mandelson said that 38 car manufacturers had signed up to the scheme and covered “all the major brands”.
Speaking at a visit to a car dealership today, he said: “I am delighted by the response of the motor industry. Thirty-eight companies have signed up – all the major UK car manufacturers and a number of other companies. This means more choice for consumers and a boost for British brands.
“The scheme has been met with a flood of enquiries from customers. It will provide a boost to the industry and kick-start sales,” he added.
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