In February I wrote that this government should scrap VRT. The reason was that since car sales would not exceed 80,000 new units and revenue would be no more than €500 million. I also said the trade would lose a further 3000 jobs.
I was wrong, a mere 60,000 cars will be sold yielding a pityful €350 million. Worse still, more than 6,000 jobs are gone.
A scrappage scheme would have little or no benefit as the gap to buy a new car would be unbridgable unless the banks release some of the money which has been lavished upon them.
My suggestion of February is even more relevent. Scrap VRT reduce the cost of cars, compensate the dealers for the drop in their used car stock values. Get people back working in the motor trade.
20 cents per litre of fuel more than funds this measure. Pay as you go.
Can this government show some leadership?