§ Mr. SimpsonTo ask the Secretary of State for Social Security what assessment he has made of the extent to which Motability Finance Ltd., Motability Car Leasing, Motability Hire Purchase and Motability Quarter End Partnerships have used their tax capacity status for the sole and full benefit of disabled people in the scheme. [5137]
§ Mr. BurtThe Motability scheme has been structured to take advantage, whenever possible, of capital allowances against corporation tax to reduce the size of loans needed to finance the scheme. This is normal business practice and disabled people receive the benefit in the form of lower charges for obtaining personal transport.
§ Mr. SimpsonTo ask the Secretary of State for Social Security if he will make a statement on the special privileges and protection from competition in respect of car leasing and hire purchase agreements enjoyed by Motability. [5089]
§ Mr. BurtIn general, the reliefs and benefits which underpin the Motability scheme apply equally to any suppliers whose predominant business is the supply of vehicles on lease or hire purchase to disabled people. There is one exception. Regulations provide for direct payment of a beneficiaries' qualifying benefit, in whole or in part, in support of an agreement through the Motability scheme. The Motability scheme has to compete for business in the normal way.