Speaking at a briefing in Dublin today he said that such a scheme could boost sales in 2010 by as much as 10,000 units.
Describing the 2009 market as a 'freefall' Mr Murphy said sales next year are likely to stay at around the 60,000. mark.
The car business here is based on a car parc of two million, with an annual replacement rate of 150,000 units, he added. “Various factors are conspiring to keep the market at well under half that figure. The replacement rate will rise, but for cash-strapped dealers it’s a question of how long they can hold out.”
A scrappage scheme would provide a 'necessary flow of oxygen' to help dealers survive in the cur depressed environment, he said.
The sector's employment has contracted by some 10,000 jobs already in the downturn.
“The economic argument for a scheme is all the more persuasive, when you factor in the cost of further job losses to the Exchequer in lower income tax and PRSI revenue.”
