THE motor industry has renewed its calls for the Government to introduce a scrappage allowance to remove old cars from Britain's roads. And, in calling for the move, the Institute of Car Fleet Management conference was told that residual values of younger ex-fleet cars would increase as a result and, therefore, wholelife costs would improve.

Society of Motor Manufacturers and Traders chief executive Ernie Thompson said the organisation still supported a scrappage allowance as a permanent feature which would progressively remove old and polluting vehicles from the roads. He suggested a £1,000 allowance with car makers and the Government contributing £500 each.

ICFM chairman Tom Madden, customer affairs director at British Car Auctions, added: 'The more older vehicles taken out then the price of younger vehicles will increase and that means wholelife costs will improve.'