EST Announces 2004/5 Grants
The Energy Saving Trust has announced the
new grant levels for its TransportEnergy PowerShift and CleanUp
programmes, to be introduced on April 1 2004.
Overall Government funding for the programmes
during 2004/5 will remain the same as the last financial year
at £26 million. Included in this figure is £7 million
for CleanUp and £7 million for PowerShift, which is slightly
higher than last year, although funding levels per vehicle have
been reduced by approximately 30% to enable greater numbers to
be funded.
The EST has forecast that this figure will
fund 5,960 vehicles, of which 2,976 will be lpg. Grant funding
for lpg vehicles currently in PowerShift Bands 2 and 3 has been
removed and a fixed grant for cars (£700) and light commercial
vans and minibuses (£800) has been introduced in response
to stakeholder suggestions that such a system would be clearer
to understand and more easily and effectively administered.
This revision in grant funding applies to Wales and Northern Ireland for PowerShift,
and England for both PowerShift and CleanUp. The Scottish Executive and Welsh
Assembly are still to finalise grant levels for their funding programmes.
The EST considers that the market for the
cleanest lpg vehicles will continue to grow in this financial
year, despite grant reductions and the changes in excise duty.
Phillip Sellwood, EST chief executive, said: “As a result of the success
and high demand for our TransportEnergy PowerShift and CleanUp grant programmes
last year, we have been working closely with the Department for Transport to
develop a new system of grant administration that will ensure consistency of
grant availability throughout the year, whilst enabling us to continue helping
transform the UK market for cleaner fuels.
"These changes have been made following
detailed discussion and debate amongst key stakeholders, customers
and industry associations to ensure that the new system can continue
to provide real cost and environmental benefits to the customer,
and assure stability for the market and value for money."
The Society of Motor Manufacturers and Traders
(SMMT) has reacted with some concern over EST proposals. While
the industry was prepared for cuts in both PowerShift and CleanUp
grants, the SMMT believes that too little has been allocated
to PowerShift.
Christopher Macgowan, chief executive of the
SMMT, commented: “More priority should have been given
to the PowerShift programme, which drives the development of
the cleanest new vehicle technologies. Splitting the funds down
the middle between PowerShift and CleanUp seems to be an arbitrary
compromise without thought of long term goals.
"It also seems slightly bizarre that
higher grant levels may be available for the same vehicles and
equipment for programmes in Scotland and Wales. Surely it makes
sense to have a level playing field across the UK?" he
added.
The EST proposals also include a quarterly
review of the grant allocation, which means funds will be more
closely monitored throughout the financial year. Greater accountability
should create more confidence in EST grants and prevent a repeat
of the situation in 2003 when grant funding ran out without warning.
Contact the EST on 0207 222 0101
www.est.org.uk
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