The car scrappage scheme announced in the last budget is to start on Monday, Finance Minister Tonio Fenech said today.

He told a news conference that a maximum of 2,000 people would be benefitting up to a maximum of €2,000 each. The scheme will remain open until November 12 next year.

Mr Fenech explained that to benefit one had to scrap a car that was over 10 years and which would have still been licenced as at October 26.

Applicants would be given a rebate of up to 15.25 per cent on the cost, insurance and freight of the new car.

The scheme was also open to first time buyers of a new car, who did not have an old one to scrap. These, however, would only benefit from up to €1,000, with the remaining sum being allocated to a special fund for the cars to be scrapped.

This, the minister said, should encourage first time buyers who did not have a car to scrap to buy one and apply for the scheme themselves.

To benefit from the scheme the new car has to have never been registered in any country.

The new car has to have a Euro 4/5 engine which emitted less than 150 grammes per kilometre and has to be 4.46 metres or shorter. It has to be for private use.

Electric cars have a separate scheme.

Applicants had to get a certificate that the car can be scrapped and that all its licence and arrears have been paid and were up to date from Transport Malta. They had to take their olf car to Tar-Robba in Kirkop, the only licenced scrapyard, which also had all the facilities to destroy the car and export the parts. A certificate to be used when the new car was bought would then be issued.

The minister noted that the average car age in Malta was 14 years. He said that 3,800 cars were scrapped last year.