Call for more eco-friendly transport incentives
Oct 1 2009 by Karen Dent, The Journal
Mr Stanley said: “It is just a review at this time. We are looking at ways of increasing shareholder value but there are no plans to move the business out of the area. It’s about strengthening the business.”
The zero emission vehicles division also suffered from the global recession, with its turnover dipping from £15.6m in the first half of 2008 to £8.1m this year.
But Mr Stanley is confident of a bright green future, with new orders last month for 50 of its Smith Ampere vans – the electric version of the Ford Transit Connect – from Holland and 15 for Hong Kong.
He is expecting Tanfield’s US joint venture Smith Electric Vehicles US (SEV US), which has customers including Coca-Cola, to be at the vanguard of the green revolution thanks to US government support.
“The American government, they have a Low Carbon Vehicle Procurement Loan – there is US$25bn in the pot. The American government is putting in huge amounts of money,” said Mr Stanley. “SEV US has received a $10m grant. They’re really serious about it.”
He wants the UK Government to give greater incentives for electric vehicles but admits the economic situation means “to a degree their hands are tied behind their backs”.
But he added: “They could give capital allowances for electric vehicles – for one year if they said people could write off 40% of the capital allowance that would cost about £40m. It would have a significant impact.”
And turning the North East into an economic enterprise zone with tax breaks for companies would also make a major difference.
Mr Stanley said: “We’ve made representations through the CBI, One North East and directly to Lord Mandelson. They are looking at it.”
He believes the region’s designation as a centre for low carbon vehicle technology will also pay dividends.
“But there are things we have to do to ensure we embed it into the region,” he added. “We’ve got to stimulate demand for products and to stimulate investment for low carbon industries, not just vehicles.”
