Downing Street Says » Motor Industry

» Wednesday, January 28, 2009

Motor Industry

Asked for the Prime Minister s response to charges that the package announced yesterday by Lord Mandelson wasn t enough, the PMS said that the Government felt this was a well-timed and well-targeted package aimed at specific issues the industry was currently facing. Whenever announcements of this kind were made there would be criticism saying the Government should do more, but we felt that this package was well targeted and focused on many of the issues we currently faced.

Asked if there was an argument to do more to help the financing arm of the motor industry, the PMS said that this was something that the new Trade and Investment Minister, Mervyn Davies was looking at. Yesterday was about direct support for the car industry. We needed to look at some of the financing issues in the wider context of what we were doing in order to ensure that we got credit moving around the economy.

Put that, in principle, the Prime Minister would like to do something to support the financing arm of the industry, the PMS said that we had asked Mervyn Davies, a man of great experience and knowledge in this area, to draw up a plan.

1 Comment »

There is no point in giving money to the motor industry, just to keep it afloat. The money should be given in the form of grants and loans to the car buying public to enable them to scrap older cars and buy new less polluting vehicles. This would clear the huge numbers of new cars in “store” and remove older vehicles from the road (a condition of the grant).

As for VAT, it should have been increased to 18% or more and not decreased.
Comment by harry pritchard — 21 Feb 2009 on 11:23 am | Link

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