SMMT welcomes end of life vehicles inquiry

Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window) SMMT today welcomed the opportunity to contribute to the Trade and Industry Select Committee’s inquiry into the economic impact of the End of Life Vehicles (ELV) Directive. The committee has called for written evidence by 21 September and will hear oral evidence in the autumn. SMMT looks forward to making a positive contribution to the inquiry, focussing on ensuring that implementation does not impose unnecessary administrative and cost burdens for UK manufacturers. To encourage responsible vehicle disposal, and to cut down on the problem of car dumping, SMMT is calling for the introduction of Certificates of Disposal. Only when the last owner can prove that the vehicle has been disposed of properly will a certificate be issued. Under the scheme, which already works well in Germany, the owner will still pay vehicle excise duty until a certificate has been granted. Manufacturers are keen to play their part in vehicle disposal but remain concerned that many parties that also gain significant income from a car during its life, including the government, will not pay a penny towards recycling. ‘The ELV Directive is a complex piece of legislation and we are keen to ensure that it is fair for both the environment and industry. The Trade and Industry Select Committee’s inquiry will provide an important opportunity to review the key issues in advance of Government legislation’, said SMMT chief executive Christopher Macgowan. In a report called Who’s milking the motor car? SMMT showed that the government gained most income from an average car throughout its nine-year life. 23 per cent of the £50,000 generated by the car was taken by the treasury. Its sale new accounted for just 16 per cent, equal to the take from finance houses and insurance companies during its time on the road. Notes to editors: The industry will point out that the Directive should not be implemented in a way that imposes more costs on UK manufacturers than others in Europe. Germany and France have already set out how targets set in the Directive will be reflected in their laws and the UK government should follow their lead. Imposing a stricter regime in this country would be both impractical and costly. The ELV Directive sets two target dates for manufacturers. In 2002 manufacturers will be made to pay a significant part of recycling costs of all new vehicles. In 2007 the liability will extend to all vehicles in the parc. The UK government has not confirmed whether or not it intends to follow this text or impose stricter targets for manufacturers in this country.

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