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Dáil Éireann debate -
Wednesday, 22 Jan 1997

Vol. 473 No. 4

Written Answers. - Car Scrappage Scheme.

Noel Dempsey

Question:

102 Mr. Dempsey asked the Minister for Finance the number of vehicles which have been detected but which are still in road use in spite of the fact that they have been submitted and accepted under the car scrappage scheme. [25265/96]

Noel Dempsey

Question:

103 Mr. Dempsey asked the Minister for Finance the number of cars submitted under the car scrappage scheme since the scheme's inception; and the preventative action, if any, taken by him in order to stop the resale or reuse of the vehicles which qualify and are submitted under the scheme. [25266/96]

I propose to take Questions Nos. 102 and 103 together. I am informed by the Revenue Commissioners that, as at 9 January 1997, the total number of claims for repayment received under the car scrappage scheme was 24,977. The number passed for payment was 24,874, while 103 were refused.

Two vehicles in respect of which certificates of destruction had been issued under the scheme were subsequently recovered by the Garda. These are believed to have been stolen from the scrappage plant while awaiting destruction. In addition, two further vehicles for which certificates had issued have been reported as having been seen subsequently on the road. The Garda, the Revenue mobile task unit and the motor tax authorities have been alerted but to date the vehicles in question have not been recovered.

A number of safeguards are in place to prevent abuse of the scheme. Certificates of destruction of vehicles under the scheme can only be issued to approved scrappage plants. Only ten such plants have been approved nationwide. These operators are monitored on an ongoing basis to ensure that the rules regarding the issue of certificates of destruction are being complied with strictly.

In addition, repayment is only made where the appropriate repayment claim form is completed, a certificate of destruction is produced, and the log book is surrendered.

The Revenue Commissioners are aware that a number of cases have been highlighted in the media where dealers have accepted cars, apparently under the scrapage scheme, but which have not in fact been destroyed and in respect of which they have not claimed repayment. While the numbers involved are not known, it is understood that they are in the region of 20. This practice, while not illegal, would nevertheless be contrary to the spirit of the scrappage scheme. No loss of revenue is involved. Discussions have taken place with representatives of the motor trade who have given an undertaking to observe the spirit of the scheme in the future. I have been informed that the Society of the Irish Motor Industry has now directed its members that all cars offered and accepted by a member garage under the scrappage scheme must be scrapped.

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