THE motor industry has reacted angrily to a Government consultation paper on the End of Life Vehicles Directive which has sparked fears of car prices rocketing for fleets next year.

The consultation, published on Friday, suggests manufacturers should pick up the bill for recycling cars and light commercial vehicles from next year - five years earlier than proposals laid down by the European Commission. The consultation document, published by the Department of Trade and Industry, sets out several options for the future of vehicle recycling. Among them are proposals that small volume manufacturers could be exempted from the scheme. Industry experts believe the cost of the ELV scheme throughout Europe could be £480 million to upgrade scrap yards and an annual cost of £336 million a year to dispose of vehicles.

Manufacturers are likely to transfer the cost of disposing of vehicles to new car buyers - the lion's share of which would be fleet operators. When the European Commission first announced the plans, it was estimated that the extra cost to buyers could be £200 on the cost of every vehicle sold.

Christopher Macgowan, chief executive of the Society of Motor Manufacturers and Traders, said: 'We are disappointed and angry that the Government appears to have completely ignored the concerns of the UK's largest manufacturing sector.'

• The document is available from the Department of Trade and Industry website.
• Comments should be made by November 2 to peter.cottrell@dti.gov.uk)