THE £1,000 car scrappage scheme is to be continued for a further, final year, the Minister for Finance, Mr Quinn, announced yesterday.

The scheme will operate until December 31st, 1997. The scrappage scheme was introduced in July 1995 for an 18 month period and was due to end on December 31st, 1996.

Since it was introduced just over 22,000 cars aged 10 years or more, have been scrapped under the scheme, with the owners being given a £1,000 tax reduction on the purchase of a new vehicle.

"Most of these were in the 10 to 16 year old bracket but car owners with vehicles which were up to 30 years old and over have also availed of the scheme," Mr Quinn said.

The measure had led to the removal of many older and potentially dangerous cars from the road. The environment, through pollution reduction, had also benefited from, the replacement of older cars.

While the scheme had assisted the motor trade, this had not been the determining factor in deciding to extend it, Mr Quinn said.

The extension of the scheme would dovetail neatly with the introduction of compulsory motor testing which was due to start in 1998, Mr Quinn added.

Mr Quinn also indicated concern that the motor industry should play its part in a more systematic way of recycling motor vehicle materials.