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MTA Pleased With $100 Scrapping Fee

PRESS RELEASE FROM: Motor Trade Association (MTA)

MTA Pleased With $100 Scrapping Fee

The Motor Trade Association (MTA) is delighted that the Government has approved a $100 grant towards the towing fee for police-impounded vehicles.

Transport Minister Mark Gosche announced last week that tow companies would receive $100.00 for each unclaimed vehicle which had to be scrapped. Owners have 56 days in which to collect their vehicles. MTA Chief Executive Stephen Matthews said “the news from the Transport Minister is very encouraging and shows that the Government is willing to recognise and support the industry which does the lions share of the work in clearing our roads of unsafe drivers and often their equally unsafe vehicles.”

“Since the introduction of impounding legislation in May 1999, MTA members involved in towing and storage of impounded vehicles have been left with hundreds of worthless vehicles when often the towage and storage fees exceeded the vehicles value. Yards all over the country are becoming choked with worthless cars.”

MTA members are right behind the impounding scheme and its good results for road safety and the wider community and the Motor Trade Association have been working with authorities to lessen the impact of unsaleable vehicles on members businesses.

“From our members viewpoint, realistic storage and disposal costs are still an issue but we are working through these concerns with the Ministry of Transport, LTSA and the Police” says Stephen Matthews


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