22 February 2013

Car industry calls for positive engagement

The Government was last night urged to engage with the motor industry in order to help provide an uplift to the economy, writes Trish Whelan.

While he acknowledged the increased levels of dialogue with the Government and SIMI in the last year, Alan Lyons, President of The Society of the Irish Motor Industry (SIMI) said such negotiations must continue into the future.

He said sales to date this year have been disappointing and that the country needs an urgent uplift in consumer confidence, and he hopes this will happen now that the Permissory Note situation has been dealt with. He said there must now be a Government focus on stimulating businesses.

Mr Lyons said the recent increase in VRT and motor tax was 'ill-timed' and said that this was not the way to increase taxes. "They should encourage vehicle sales and recognise the important role the motor industry plays in the economy.

"Last year, the motor industry contributed €4.5 billion in taxes for the Exchequer which equals 13 percent of the total tax take and 25 percent of the country's indirect taxes."

He said many well respected members of SIMI have closed their doors in recent times and he expressed his sympathy for them, while adding that many other members across all sectors of the industry continue to refocus and try to drive their businesses forward.

He said the real benefit of the second registration plate system will be seen in years to come when people get used to it, adding that SIMI has been seeking this for the last five years. "The change wasn't driven by the fear of the number 13 reg plate - but these concerns may have helped get it across the line."