Government says no to low carbon car fund

The Department for Transport announced on Wednesday 7 June that four new grant programmes to assist people buying eco-friendly vehicles would not be going ahead, including the Low Carbon Car fund. The European Commission Competition Authority had given approval for the UK’s Low Carbon Car grant to replace the Energy Saving Trust’s Powershift grant scheme, which was withdrawn 15 months ago. However, the decision has been made that no other financial incentives will be introduced and Keith Johnston, managing director of GoinGreen, the country’s foremost green vehicle retailer says in response: ‘This is hard to believe. Government should be seen to be encouraging the early market purchase of low and zero emission vehicles if they are going to start trying to reach the targets that they have set for reducing C02 emissions, which are actually 8.7% higher than in 1990 when the aim is for them to be 20% lower than in 1990 by 2010’.

GoinGreen supports the Energy Saving Trust’s view that incentive mechanisms are necessary for clean, low carbon vehicles to come to market, especially as these vehicles are usually produced in low quantities and use advanced technologies that cost more than petrol or diesel cars to produce in large volumes.

The original Powershift scheme was withdrawn while the EU determined if it breached European competitive rules. Purchasers of zero and low carbon vehicles received a cash bonus against the purchase of their vehicle and in the year 2004/05, £7.8m was given out by the EST for 5,345 vehicles. Keith Johnston says: ‘This was a very important programme to fund and cost little in real terms. The new grants would have been between £300 and £1,000 and if a £15 million pot had been set aside, had the potential to put at least an extra 10,000 low and zero emission vehicles on the UK’s roads, enough to make a visible difference and really get the market for low carbon vehicles going. More importantly, it would also have demonstrated the Government’s commitment to its environmental policies, which once again lie in disarray’.

GoinGreen is the retailer of the G-Wiz electric car, of which 500 have already been sold in the London area; a figure that GoinGreen believes would have doubled had a grant been available. The 100% emission-free G-Wiz is exempt from road tax and the London congestion charge, enjoys free parking in Westminster and the City, has room for two adults and two children and does equivalent to around 600 mpg. Keith Johnston adds: ‘ There are many people who could really use the financial assistance to help them achieve their aim of C02-free motoring but without support and encouragement will delay any decisions. This government must stop sending mixed messages and lead market change – the current laissez-faire approach is taking irresponsible risks with the future of our planet’.