The Government has announced it will delay the introduction of the ‘Cash for Clunkers’ scheme (officially called The Cleaner Car Rebate) by six months, to June 2011.
We’re not surprised and indicated our doubts when the Gillard Government was narrowly re-elected and we dealt with this issue in some detail.
In fact the scheme has come in for substantial criticism since Prime Minister Gillard announced it as a vote winning carrot last July. She promised a $2000 rebate for people who update their pre 1995 car by purchasing a new, lower emission, fuel efficient vehicle. $400m was to be set aside, and this was expected to get 200,000 old cars off the road.
However it has been heavily criticised because: only three local cars would qualify (the rest would be imports): it is very expensive for the benefits it delivers:it simply brings forward intended purchases, and it could be subjected to huge rorts ( as demonstrated in the Obama Cash For Clunkers effort in the USA).
After the aptly named Federal Industry Minister Kim Carr announced the delay Opposition Leader Tony Abbott entered the debate labelling the scheme ” a thought bubble” and said that if the Government is looking to save money ‘cash for clunkers’ should be the first to go.
So the message is clear:- if you own a clunker and are looking to update don’t hold your breath waiting for the ‘cash for clunkers’ scheme to help you, it may never happen.