SIMI calls for second reg. date as car sales drop

Second registration peak could boost industry, save jobs and raise much needed revenue for Government says SIMI.

The Society of the Irish Motor Industry (SIMI) has again called on the Government to introduce a second, mid-year, registration plate to combat seasonality in the motor industry. The call comes on the back of new car sales figures that show a 22 per cent drop for the month of April compared to the same month last year.

"While the industry is still trying to drive sales, the reality is that the peak selling period of 2012 is now over," said Alan Nolan, Director General of the SIMI. "Because of the seasonal nature of car sales, sales will continue to decline month on month for the rest of the year."

SIMI proposes a switch to a UK-style system, with a second registration plate in June, to not only create a second sales peak but also to stabilise employment in the industry.

"Every year, we see the same pattern; a spike in car sales in January and then a decline, month on month. What this means is that staff who are taken on for the busy first quarter, often have to be let go mid-year because of the lack of activity throughout the rest of the year," said Nolan.

SIMI states that a second registration peak mid-year would not only assist the motor industry, but would increase tax revenues for the Government. "Experiences in other markets indicate that the change in registration plate will generate extra sales and extra Government revenue. Applying this to Ireland, we would see Government revenues increase by over €20 million in the first year of the change alone."

Over to you Messrs Varadkar, Noonan et al.

Published on: May 1, 2012