Select Committee on Trade and Industry First Report


V CONCLUSIONS

63. Unfortunately, it is still unclear exactly who will bear the brunt of the economic impact of the Directive. The DTI in evidence conceded that there are very substantial cost implications for motor manufacturers: "There are potentially big issues here, it is going to affect the economies of all the car manufacturers, the importers, the shredders, the dismantlers, everybody; which is why we do have to be very careful to make sure that we do not have any unintended consequences with this".[141]

64. There will inevitably be costs for those who decide to become Authorised Treatment Facilities, and changes for those who do not wish to do so but who currently handle ELVs. We urge the Government to clear up the uncertainty over the funding of the implementation of the Directive as soon as possible.

65. Implementation of the Directive will inevitably lead to some shake-up in the existing markets for spare parts and scrap metal. The DTI should monitor the situation closely to ensure that the Directive is implemented in an efficient and speedy manner to minimise confusion and disruption.

66. Notwithstanding the recent press coverage of the ELV Directive, many last owners of cars will be unaware of the impact of the Directive. We recommend that the DTI run an information campaign early in the New Year to ensure all players, including last owners, are clear where their responsibilities lie.


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Prepared 6 December 2001