Cash for clunkers to release next month

　　Yesterday, a reporter of Changjiang Daily learned from the commercial sector of Wuhan city that the subsidy of the cash for clunkers program will be officially released next month.

　　Initially the cash for clunkers program is said to affect only for one year from June 2009 to the end of May this year. However, So far, not even a single car owner has got the subsidy.

　　Policy floating in the air

　　The insiders of Wuhan commercial sector explained yesterday all the related departments are quite cautious for the financial subsidies are involved with a wide range of routines.

　　First of all, the ruled procedures must be followed.

　　The policy was announced in June last year. But one month passed after official documents reach Wuhan city. Besides, it also takes time for the subsidies to be allocated from the national financial bureau to provincial finance bureau and then finally to municipal relative departments.

　　At the end of last year, when part of the funds had been allocated to municipal financial bureau, the relevant state ministries set out an announcement to enhance the subsidy standards. If the subsidies were release that time, the car owners have to get it for a second time. Therefore, Wuhan commercial sector chose to wait temporarily.

　　In addition, the state policy needs refinement.

　　According to cash for clunker policy, different models get different subsidies. For example, the disparity among, mini, light and medium trucks are not so small. However, it is not clear how to judge which group a truck belong to.

　　Obviously, this requires commercial sector to consult with the vehicle administration to work out the implementation details.

　　Some special circumstances should also be involved. For example, what is the subsidy standard for a modified vehicle and a car whose owner changed.

　　What is worse, the management system of cash for clunker policy is very complicated.

　　When the new policy was released in January, the Ministry of Commerce accordingly adjusted management system. This system requires a large amount of data, as well as the co-operation of commercial, environmental protection, finance and other departments. Not a node is allowed to be ignored in the chain.

　　Inadequate implementation weaken simulative effect

　　In the middle of last month, the Ministry of Finance and Commerce jointly issued a notification that from January 1st, the qualified car owners can get the allowance of cash for clunkers as well as 7.5% preferences on purchase tax for vehicles with a displacement of less than 1.6 liter.

　　This is the second time within a month the government raise the concession.

　　December 31st, 2009, the government dramatically improved the subsidy standards from 3,000-6,000Yuan to 5,000-1, 8000 Yuan.

　　It is reported that last year the government introduced three policies to encourage car consumption, including halving the purchase tax, car to the countryside and cash for clunkers.

　　Compared with the other two measures, the effect of cash for clunkers policy was relatively weak.

　　Yesterday, the head of Wuhan Xinhui Auto Recycling Corporation claimed that in his company the amount of cars scrapped in 2009 equaled to that of 2008.

　　This year, the renewed upgrade policy appears to be effective. “There is huge number of always telephone calls for consultation", however, less people come to scrap their cars.

　　According to analysis of the insiders, the problem lies in the subsidies, “since subsidies have yet been released, many people are so irresolute.

　　Take Mr. Zhou for example, he wants to replace his eight-year-old Toyota for a new one. Hearing that subsidies of the cash for clunkers increased, he immediately came to the Recycling Corporation to consult. However, when told “no one has actually got the subsidy”, Mr. Zhou hesitated suddenly.

　　(Translator: yalong/ Jessie)

　　See original Chinese report Please click:

　　http://auto.sohu.com/20100226/n270440272.shtml