CALLS for a car scrapping scheme to revive the ailing motor industry have received backing from the North-East.

Figures show the arrival of 09 number plates has failed to stop a slump in sales of new cars.

A total of 313,912 vehicles were registered in last month – a 30.5 per cent fall on the March 2008 figure, the Society of Motor Manufacturers and Traders (SMMT) said yesterday.

Sales for the first three months of the year are down 29.7 per cent, although small cars and diesel vehicles showed a sales improvement last month.

For some time, the motor industry has been calling on the Government to introduce a car scrappage scheme, whereby owners are offered a financial incentive to get rid of their old vehicle and replace it with a greener model.

The initiative has worked well in other countries and contributed towards the 40 per cent surge in new car sales in Germany last month.

SMMT chief executive Paul Everitt said: “A scrappage scheme will provide the incentive needed, and the evidence is clear that schemes already implemented across Europe do work to increase demand.

“The UK is the only major European market not to implement a scheme.”

The call has been backed by Darlington-based Northgate Vehicle Hire.

Managing director Phil Moorhouse said: “A scrappage scheme should be introduced by the Government as it will stimulate economic demand for new and nearly-new vehicles.

“It will reduce vehicle emissions, as newer vehicles powered by cleaner engine technology would replace older polluting models, and newer vehicles are also equipped with all the very latest safety features to help drivers avoid crashes and offer improved protection in the event of an accident.”

The SMMT has estimated that up to 250,000 cars and 30,000 light commercial vehicles could go through a scrappage scheme over an 18-month period, if introduced.