Gillard’s promise is to pay $2000 a piece to the first 200,000 voters to drag a pre-1995 car to the scrapyard, as long as they promise to replace it with a new green car, such as the Holden Cruze, Hyundai Getz or Toyota Camry Hybrid, now retailing for $39,000.
The aim of this $396 million plan, says Gillard, is to help save the planet from our wicked gases, which she claims are heating the world to hell.
“Australians own a lot of old motor cars, and those old cars guzzle a lot of petrol and they spew out a lot of pollution,” she preached. “The amount of carbon we anticipate saving through this measure by getting the 200,000 old cars off the road is one million tonnes.”
The Gillard Labor Government will provide $394 million to support motorists to purchase new, low-emission, fuel-efficient vehicles. Households will be able to receive a $2,000 rebate towards a new vehicle by trading in their pre-1995 car for scrapping.
This is part of Federal Labor’s plan to make positive changes to how we live, work and travel.
Over four years from 1 January 2011 to the end of 2014, the Cleaner Car Rebate is expected to result in significant cuts in Australian fleet emissions as close to 200,000 pre-1995 vehicles are taken off the road and replaced with more fuel-efficient, environmentally friendly cars. Rebate will be capped over its four years of operation at 200,000 vehicles. Improving the efficiency of our vehicle fleet
Prime Minister Julia Gillard has promised a $2,000 rebate for people who update their old motor vehicles.
Campaigning south of Brisbane, Ms Gillard said that if Labor is re-elected, owners of pre-1995 cars who buy a new car after January 1 next year would be eligible for the rebate.
Federal Chamber of Automotive Industries chief executive Andrew McKellar said the loss of the $430m clunker scheme in which people were to receive $2000 to trade an old car for a more economical model was doomed from the start.
“There wasn’t a lot of industry consultation before that scheme was proposed and it wasn’t the best designed,” he said.
I suppose the idea for cash for clunkers in the US came from an adviser to the new administration who knew of its “success” in Europe. When the program started in 2009, I admit I was surprised at the almost immediate outcry from economists, pundits and, yes, citizens, denouncing it as wasteful.
They were, of course, right: It pulls forward new car sales, but it also scraps perfectly good, serviceable vehicles, lowering supply and driving up used-car prices.