TORONTO, ON -- March 19, 2008 -- Members of the Ontario PC Caucus have proposed an incentive program to get old cars off the road and stimulate sales of new cars.
 
“It’s clear Dalton McGuinty needs to take a new path toward fuelling Ontario’s economic engine,” said Hudak. “This program would give Ontario families a real incentive to start buying again.” 

The Ontario Automotive Recyclers Association (OARA) has already come out in support of the plan.

"A provincial vehicle scrappage program, coupled with mandatory provincial licensing or accreditation of auto recyclers, would provide a significant boost to both Ontario's economy and its environment," said Steve Fletcher, Executive Director of the Ontario Automotive Recyclers Association. "Increasing responsible recycling of older vehicles stimulates vehicle sales, ensures economic spinoffs, and improves our environmental footprint."

OARA has been actively involved in the development of a national vehicle scrappage program and the associated code of practice for auto recyclers. One of OARA's achievements was the development of the Car Heaven program, which provided incentives for people to retire their older vehicles through charitable receipts, new car discounts and other incentives.

"Legitimate auto recyclers purchase end-of-life and accidented vehicles and retire them in an environmentally sound manner, taking into consideration such things as the hazardous fluids and mercury a vehicle contains," said Fletcher. "Many other scrap dealers or junkyards buy vehicles solely for the scrap metal content without regard to proper environmental processing, and often contribute to the underground economy. A provincial licensing or accreditation system would solve these problems."

A number of other jurisdictions are ahead of the curve compared to Ontario, with programs like this already well place.

The federal government's "Retire-Your-Ride" program allows consumers to trade-in their old clunkers for discounts on public transit passes, bicycles, membership in car-sharing programs or $300 in cash. It involves $92-million in government funding until March 31, 2011.
 
In British Columbia "Scrap It" program offers up to $2,000 towards a new car for pre-1995 vehicles.       The incentive program is directly tied to the net C02 reduction in the vehicle being purchase or retired.