How the 2017 EU vote affects the classic car scene
Uncertainty over Britain’s future in the European Union is set to have a negative effect on the classic car movement, commentators warn.
The new majority Conservative Government has promised to go ahead with its election pledge to hold an in/out referendum to decide whether Britain should remain part of the union.
Latest reports suggest the vote could now be held as early as next year. Bank of England Government governor Mark Carney has warned that the situation was causing business uncertainty.
Apart from potential economic concerns for the classic movement, the possibility of the UK leaving the European Union throws into uncertainly whether the controversial EU Roadworthiness Directive will be introduced in Britain.
Due to be implemented in 2018, the criteria for this is supposed to be based on Tyre Approval – which wasn’t carried out on cars until the 1970s. It would also mean that 30-year-old and older vehicles would be exempt from testing.
The Federation of British Historical Vehicle Clubs represents 500 or so member organisations and supports a paid lobbyist in Brussels to monitor EU directives and their potential effect on classics.
‘It’s the Roadworthiness Directive that is causing the most uncertainty, ‘said FBHVC spokesman Geoff Lancaster. ‘We have done a lot of work on making a case for classics as far as the regulations are concerned, and have been talking to the Department for Transport. We don’t know if the Directive will now go ahead here.’
Geoff added that, whatever the referendum decision, the EU lobbyist’s services were likely to be retained. ‘We would still need to know about legislation affecting other countries. I can’t see that leaving the EU would affect the relationship we have with other classic organisations.' he said.
There’s a general feeling within the industry that the referendum should take place as soon as possible.
Classic specialists would - in theory - benefit if Britain left the EU, because they would not have to pay VAT on their profits on vehicles sold in the Eurozone as they do at present. Giles Crickmay, owner of renowned Rolls-Royce and Bentley specialist Frank Dale and Stepsons, said: ‘It could complicate things as there wouldn’t be the free movement of vehicles that there is at the moment, and obviously countries could implement their own taxes.'
The Roadworthiness Directive was a major factor for Malcolm Gammons of MG specialist Ron Gammons. ‘We should not have 30-year-old cars exempt from MoT. I have raised the issue with the Retail Motor Industry Federation about this unsuitable piece of legislation. With the referendum we now don’t know what could happen.’
He added: 'Exchange rates are a major factor in the prices people abroad pay for cars in Britain and I think they would have a bigger effect on demand rather than whether or not we left the EU.'
Sir Greg Knight MP, chairman of the All Vehicle Parliamentary Vehicles Group believes that quitting the EU would mean a reduction in bureaucracy.
‘If we did leave, the German and the French would certainly still want to trade with us. We’re a great trade nation and I wouldn’t lose any sleep over leaving the EU. If we left we’d lose some red tape. David Cameron’s keen on losing red tape, and most of it comes from the EU.
'A big risk we’re currently faced with is from bureaucrats in the EU. We’re in danger of them introducing new laws that will affect new cars, and older vehicles. I battle continuously for classic cars to get exemptions because some of these new proposed laws shouldn’t affect classics.
'If we left the EU why would we suddenly clamp down on classics? George Osborne has shown that he’s a supporter of the movement with introductions like rolling exemption for VED.'
A Conservative Party spokesman added: ‘There is call to have the referendum as soon as possible and it is one of our election promises. As a party, we are not advocating leaving the EU - the decision as to whether the UK does or doesn't is entirely up to the people who decide to vote in the referendum.'
There's further analysis of the impact of the EU vote on the classic market in this week's Classic Car Weekly, pick up a copy from today.