Thursday, August 27, 2009

LOBBY WEAKENS US CAMPAIGN

       Nearly 5 million of the worst-polluting vehicles in the US have been quietly excluded from the popular "Cash for Clunkers" progrkamme after lobbyists for antique auto-parts suppliers and car collectors persuaded the government to shut out cars built before 1984.
       The restriction has prevented consumers who own older cars and pickups from cashing in on the US$3-billion (Bt102 billion) federal programme even though many do not consider their jalopies to be collectors' items.
       When the federal government announced the rebates of up to $4,500, Chris Hurst said it looked like the perfect time to unload his gas-guzzling 1981 Ford F-150, California, was surprised to discover his pickup was too old to qualify.
       "If we could have gotten that rebate, it would have worked perfectly for us," said Hurst, who is now trying to sell the vehicle, equipped with Ford's biggest V8 engine, for $1,600.
       The restrictions were pushed by lobbyists fot the Specialty Equipment Market Association (Sema), a California group representing companies that sell parts and services to classic and antique car collectors. The group, as well as classic car enthusists, have oppesed "Cash for Clunker", because they do not want older vehicles to be destroyed.
       When the proposals for the clunker buy-back programme surfaced early this year, Sema opposed the entire concept, because such a programme could shrink the size of the market for after-market parts. Sema eventually succeeded in getting lawmakers to adopt the aage restriction.
       "We are very pleased that Congress was able to include that in the programme," said Stuart Gosswein, director of regulatory affairs at Sema.
       The organisation represents more thna 7,000 comapnies that make all manner of auto-related products, including reproduction Model T tyres and AMC Gremlin upholstery. The powerful interest group earlier won legislative batteles to protect owners of classic cars and hot rods from laws covering vehicle noise and emissions tests, among other things.
       Consumer kand environmental groups reluctantly went along with the Sema provision, because they were too busy fighting for any rule that would push consumers to buy more fuel-efficient vehicles than the ones they were using.
       "I don't know that the programme makes a whole lot of environmental sense," said Lena Pons, a policy analyst for Public Citizen, which pushed for tougher fuel-economy standards.
       "There is not a whole lot of justification for the classic-car industry to block older vehicles from being traded in."
       Other critics fault the age limit on economic grounds, saying it makes little sense even for collectors.
       "If I own a 30-year-old Mustang, the value of my car goes up if others get destroyed," said Chris Edwards, an economist for the libertarian Cato Institute.
       "It is a typical industry loophole that doesn't protect the little guy but does protect some special-interest groups."
       Many Americans do not have the money to buy a new car, said Dan Baker, a part-time handymand and gardener in South Carolina who said he wished he could have qualified for a rebate to upgrade to a better used vehicle.
       "I'm the kind of person this programme could have helped," he said.
       Baker is trying to sell a brown 1980 Oldsmobile Cutlass SS with a broken air-conditioner and rusty fenders for $1,200.
       "It's just an old car with 101,000 miles on it," Baker said. "It is not a classic."
       Groups representing salvajge yards and service garages also derailed a provision in the bill that would have required the entire drive train of traded-in clunkers to be destroyed. Junkyards are now permitted to strip and resell all parts of the vehicles, exept the engines.

No comments:

Post a Comment