By ANTONELLA ARTUSO, QUEEN'S PARK BUREAU CHIEF
The Ontario government is considering a request from the Ford Motor Co. and others to bring in a substantial scrappage fee to encourage consumers to ditch their old cars and buy new ones.
"I know it's in place in some European countries," Premier Dalton McGuinty said yesterday. "And that's something else that's on the table."
But McGuinty admitted that his government is already under substantial pressure to provide additional resources in its upcoming budget for schools, poverty reduction and economic stimulus.
Ford Canada chief executive David Mondragon suggested a scrappage program in a meeting with the premier last week.
Ontario Finance Minister Dwight Duncan said his budget last year included a small amount of money to investigate the possibility of a scrappage fee in response to concerns raised by environmentalists about old cars.
Ottawa has a $300 scrappage fee for older cars, but supporters of the program say it would have to be much higher to have an impact on consumers.
Tory MPP Peter Shurman said the government should be looking at scrappage fees and also at scrapping the PST and GST on new cars to stimulate buying.