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Kim Carr's cash for clunkers 'pinks batts on wheels' cop out.



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Media Release

Authorised and printed by Brian Loughnane for the Liberal Party of Australia Cnr Blackall and Macquarie Sts BARTON ACT 2600

Sophie Mirabella MP

Shadow Minister for Innovation, Industry Science and Research Federal Member for Indi

Wednesday 11 August 2010

KIM CARR’S CASH FOR CLUNKERS ‘PINK BATTS ON WHEELS’ COP OUT

Kim Carr’s opinion page piece in The Australian today ducked the central question swirling around the Cash for Clunkers scheme - the fact that it will blow out in cost.

Not one Labor politician since the ‘pink batts on wheels’ scheme was rolled out by Julia Gillard has refuted this central fact.

Not one Labor politician has disputed the fact that the cost of the rebates to purchasers will blow out from $400 million to $800 million.

The Department of Finance and Deregulation noted in a media release on 27/7/10:

“The profile of the estimated expenses over the four years is sensitive to the assumptions that are made regarding the take up of the rebate where an individual is induced by the rebate to purchase an eligible vehicle.”

Not one Labor politician has disputed the fact that car dealers will have to be rebated at least $200 million to pay for the cars that are traded and would normally be sold for approximately $1,000 each, but which under the Cash for Clunkers scheme would have to be crushed and scrapped.

Again, in the same press release as above, DOFAD noted:

“It has been assumed that the cost of scrapping vehicles traded in under the proposal will be met by motor vehicle dealers. Although Finance notes the arrangements for the scrapping are to be determined following consultation with the industry.”

Kim Carr himself has stated that the scheme would cost $1 billion to implement - something he has not denied.

Ms Gillard has form when it comes to these sorts of schemes. Just think of the rorted Building the Education Revolution, the failed pink batts scheme and the green loans fiasco.

The Cash for Clunkers scheme is just the next generation of these schemes that sees the cavalier misuse of taxpayers’ funds.

If Ms Gillard had any economic rectitude she would junk Cash for Clunkers.

Media Contact: John Polack 0410 482 261