Electric car subsidy decision welcomed

Jul 29 2010 by William Green, The Journal

NISSAN has welcomed news that a Government subsidy of up to £5,000 for electric vehicles will go ahead.

The car maker said the incentive to encourage motorists to buy new ultra-low carbon vehicles, beginning from next January, would help develop the market for electric cars, including the Leaf due to be built at its Sunderland plant from 2013.

Transport secretary Philip Hammond said the funding, first announced by the Labour government, will go ahead from January 2011, reducing the cost of new ultra-low carbon vehicles by 25%.

But Labour MPs and environmentalists said the Government’s announcement did not go far enough, with only £43m committed for a single year, rather than the £230m it had proposed.

A Nissan spokeswoman said: “The Government has signalled that Britain is serious about supporting new low carbon technologies and is serious about helping consumers to make more sustainable choices. Consumer incentives will bring electric vehicle ownership within reach of UK motorists and make cars like the Nissan Leaf a financially viable alternative to conventional petrol and diesel-powered cars.”

Labour leadership candidate Ed Miliband attacked the Government’s “disappointing lack of ambition” and urged it to match Labour’s greater commitment.