A report from the Society of Irish Motor Industry indicates that new car sales have surged by nearly 40 per cent last month on the same month last year, according to Deputy John McGuinness.
“While the figures were starting from a very low base this is really good news for such a hard pressed industry,” said Deputy McGuinness.
“I was delighted when the Minister for Finance announced the scrappage scheme that would allow those participating to avail of VRT relief of up to €1,500 per new car purchased when trading in cars 10 years or older. While the amount may seem small, it is proving to be a positive incentive.
“Over 10,000 jobs have been lost in the car sales sector and this practical measure is obviously having a positive impact.
“There is also a big focus on environmentally friendly cars and the development of new technology in this field. There is now a VRT exemption for electric cars and VRT relief of up to €2,500 for plug-in hybrid electric cars and this will be extended until December 31, 2010.
“I hope this is an upward trend and that it helps to protect jobs in the sector. The purchase of new cars also brings much needed taxes into the government coffers,” Deputy McGuinness concluded.
