Written answers

Tuesday, 24 March 2009

9:00 pm

Photo of Seán ConnickSeán Connick (Wexford, Fianna Fail)
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Question 181: To ask the Minister for Finance if his attention has been drawn to the fact that the motor industry in Germany is reporting a 21% year on year increase in new car sales in February, despite Germany being in recession and having an unemployment rate in excess of 8%, due to the introduction of a stimulus package for the industry which pays consumers €2,500 to replace a car at least nine years old with a new car; the amount a similar package would cost the Exchequer if it yielded similar increases in new car sales here; the amount it would yield in extra tax revenue; his views on introducing a similar package in the forthcoming Budget as a means of reviving the motor industry here; and if he will make a statement on the matter. [11055/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I am conscious of the decline in new car sales in Ireland and internationally due to the contraction in economic activity. As the Deputy is aware, I and officials in my Department have met with representatives of the motor industry, where they have put forward various proposals, including the introduction of a car scrappage scheme. Any such proposal will be considered in the context of the forthcoming Supplementary Budget.

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