26 Jul 2010

Cash for old cars scheme unlikely - minister

12:47 pm on 26 July 2010

The Government is unlikely to put in place a cleaner car rebate like the one being proposed across the Tasman.

As part of her election climate change policy, Australian Prime Minister Julia Gillard is offering $A2000 to owners of pre-1995 vehicles who buy a new car, after 1 January next year.

Motorists offered the cash will be expected to purchase a new, lower emission, fuel efficient vehicle.

Ms Gillard says Labor's plan would take about 200,000 old vehicles off the road.

A spokesperson for New Zealand's Transport Minister says a scrappage trial was held in some centres last year but was not found to be cost effective.

However Green MP Kennedy Graham says the incentives were so poor it was hardly worth people taking up the offer and the Government should be prepared to put more money into such packages.

New Zealand's Automobile Association says roads in this country would be made safer with such a plan, since the average age of vehicles is 12.5 years.

The Beneficiary Advocacy Federation says most beneficiary recipients could probably not afford to buy a new vehicle.