Diesel Vehicle Scrappage Scheme

Debate between Gregory Campbell and Neil Parish

Wednesday 19th April 2017 Westminster Hall

[Neil Parish]

Good; I look forward to the Minister’s words of wisdom. The hon. Member for Blackley and Broughton (Graham Stringer) raises an interesting point—it is the hotspots in particular that we need to sort.

Road transport still counted for 34% of the UK’s NOx emissions in 2015, and the rate of reduction from the sector has slowed down because of the increased contribution from diesel vehicles. Turning to the Government’s plans, I was therefore disappointed that a scrappage scheme was not announced at the Budget. Of course, we are a little hopeful that something may be announced very soon. The Transport Secretary stated on “The Andrew Marr Show” in February that the Government were considering a scrappage scheme, but there have been no further announcements. I know that there are concerns about the costs of any scheme, and that is why it should be targeted and proportionate. It can be a key weapon in the Government’s armoury in tackling air pollution problems.

What is more, a scrappage scheme is very popular with the public. A recent survey of over 20,000 AA members showed that seven in 10 backed the policy, rising to three quarters among young people. A separate survey published by the think-tank Bright Blue just two weeks ago showed that 67% of Conservatives backed a scrappage scheme. Ministers, this is a policy with significant public support, especially as we move, dare I say it, towards a general election—that was not in my speech.

What would a scrappage scheme look like? First, it would mean replacement by ultra-low emission vehicles. Any potential scrappage scheme should have a stringent condition on the replacement vehicle. It should mandate users to swap their vehicles for an ultra-low emission vehicle or other forms of transport.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I thank the hon. Gentleman for giving way and congratulate him on securing the debate. He is outlining some of the things that he hopes will happen. At the weekend we saw some publicity regarding the explosion in credit for purchasing new and recently second-hand cars. Does he agree that the last thing we want to see is a further explosion of credit on the back of an issue that has resulted from the expansion of diesel cars over the past 20 years?

[Neil Parish]

That is always the problem. Naturally, in order to buy a new car, people often need credit. I suppose the argument is that if a certain amount of support is available for a new vehicle, people will not need to borrow quite as much credit to get that vehicle. I understand what the hon. Gentleman says, but we have to balance that with the fact that we need to improve air quality dramatically. That is why a scheme should perhaps be particularly targeted towards our inner city.

What I was talking about could include a public transport ticket, a car club membership, a rail season ticket or cleaner transport such as a new bicycle. A scrappage scheme may not necessarily be just about people changing their cars. I could do with a new bicycle to come in from Battersea every morning—it would be ideal. The scheme would work in a similar way to the pollution reduction voucher scheme operating in southern California. The whole idea of this morning’s debate is to think slightly outside the box. The scheme also has a potential to provide a substantial boost to the UK’s emerging electric vehicle market.

Secondly, the scheme would be means-tested. I do not want a scrappage scheme becoming a subsidy entirely for the middle classes. Households should not just be able to trade in multiple diesels for a cash subsidy. Instead, the Government should consider targeting a scrappage scheme at poorer households or those earning less than 60% of the median UK household income in particular.