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ACFO calls for sense on scrappage

Date: 02 April 2009   |   Author: Tristan Young

"There's a fine balance between the company's need to save money and the need to attract and retain good staff," says Julie Jenner, ACFO

ACFO chairman Julie Jenner has called on the Government to see sense on scrappage by making sure any scheme stimulates the whole of the car market.

Jenner, who has recently met with Treasury minister Angela Eagle, believes a scrappage scheme won't work if it's limited to new and used cars up to one year old.

"The only way a scrappage scheme is okay, is if it's for cars up to four years old, with a CO2 of less than 160g/km. That way people can afford a car.

"People trading in a nine year old car can afford £5000 on a car, they can't afford a £15,000 car."

Jenner also warned that any scheme is unlikely to be self-funding due to the set-up and administration costs.

Jenner also suggested an alternative to those schemes already being suggested: "The best thing would be a sliding scale, for example the Government could offer a percentage of a newer car's price up to a maximum amount, based on the age and cost of the newer car."