A scrappage scheme for white goods has been proposed by lobby group, Retail Excellence Ireland in its pre-budget submission.
The scheme would allow customers trade in their old washing machines or dishwashers for more water and energy efficient models. Qualifying replacements would be sold free of VAT for a 12 month or two year period, representing an instore discount of 23%. One of the appeals for shoppers would be that new models use less water, which in turn would help reduce water charges.
Sean Murphy, deputy chief executive of REI said that government officials had sought more detailed calculations on the proposal.
REI claims that most shoppers spend an additional €250 when buying a washing machine or dishwasher, so stimulating sales of white goods should boost retail VAT receipts for other goods. It also says that by requiring customers to bring back their old machines, Ireland’s Waste Electrical and Electronic Equipment (WEEE) recycling collection rates would improve, helping the country to meet EU targets.
REI said that just over 131,000 washing machines and 58,000 dishwashers were sold in the year from July 2013 to June 2014.
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The most energy and water efficient models have an A+++ rating and accounted for 24pc of sales washing machine sales in the period. Machines rated B, C and below accounted for almost 20pc of sales.
The average washing machine bought in 2006 uses 14,430 litres of water a year compared to 9,500 litres for the most energy efficient machines now on the market.
REI’s other pre-budget proposals include retention of the 9% VAT rate for certain services, the appointment of a retail minister and the stream-lining of visa application for non-EU visitors to boost tourism numbers.