Dáil Éireann debate -
Tuesday, 4 Feb 1997

Vol. 474 No. 3

Written Answers. - Scrappage Scheme.

Róisín Shortall

Question:

70 Ms Shortall asked the Minister for Finance the provision of the car scrappage scheme with particular reference to the requirement for garages to ensure that cars are actually scrapped; if his attention has been drawn to reports in the media that many cars which were intended for scrappage were later seen on the road; if this is in order under the scheme; and the provision, if any, which ensures that garages keep to the terms of the scheme; and if he will make a statement on the matter. [2834/97]

Minister for Finance (Mr. Quinn)

I am informed by the Revenue Commissioners that a person wishing to avail of the car scrappage scheme has the option of either arranging directly for the car to be scrapped at one of the ten approved scrappage plants or, alternatively, allowing a motor dealer, from whom the new replacement car is purchased, to make the necessary arrangements. In either event, an application for repayment can only be processed if it is accompanied by a completed "Certificate of Destruction" issued by one of the ten approved scrappage plants.

The application for repayment can only be completed by the owner of the scrapped car, although the person concerned may indicate on the application form that the Revenue Commissioners may make repayment to the motor dealer. This arrangement enables the dealer to credit the customer with £1,000 in advance of the scrapping of the car. Revenue's involvement in the scheme is confined to the monitoring of the activities of the scrappage plants and the processing of completed applications for repayment.

I am aware of the reports in the media that cars intended for scrapping were not in fact scrapped but put back on the road. While the numbers involved are not known, it is understood that they are in the region of 20. This practice is not in itself illegal provided that an application for repayment is not lodged with the Revenue Commissioners. However, the practice is contrary to the spirit of the scheme if the owner of the car had concluded a deal with the motor dealer on the understanding that the car would be scrapped. 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.