Senate go-ahead for used car law
voted yesterday to legalise second-hand car sales.
Easier access to autos for lower-income earners, the environmental benefits of recycling, improved balance of payments for Bermuda, and potential spin-offs for local mechanics together outweighed the down side of second-hand sales, Senators decided.
Youth and Sport Minister the Hon. Pamela Gordon, who as Parliamentary Secretary for Transport introduced The Motor Car Amendment Act 1993, said most Island residents have favoured a more liberal law on second-hand sales for some time.
"We have heard the cry and so we have moved forward,'' she said. Under the existing law, a car owner must either export or destroy their vehicle before purchasing another. Those who sell their cars must wait one year before they can purchase another.
The new law permits second-hand sales, but requires the existing car to be sold before another one can be purchased.
Sen. Gordon said Government estimates the change will result in about five percent more cars on the road, and she agreed the proliferation of vehicles is a tourism concern.
"In a situation like this, only time will tell if we have made the right decision,'' she said.
Each Bermuda household is permitted one automobile. For the Island's 24,000 dwellings, there were 19,700 vehicles registered in 1992, of which 17,000 were licensed.
Senate Opposition Leader Sen. Alex Scott said the increased affordability of second-hand cars made him "reluctantly agree to what has to be seen as a drastic step''.
"This is not a progressive move,'' he said. "This is not in the interests of Bermuda.'' While he did not outline specifics, he said the Island needs a comprehensive transportation system, and "there were other alternatives which we never fully investigated''.
Sen. Trevor Woolridge (PLP) said if second-hand car sales are permitted, the law should require full disclosure of the car's history.
"We want to ensure that an individual who buys a second-hand car will be assured that after the papers are signed and the cheque is handed over, and they drive down the road, that the car is not going to fall apart and never start again,'' Sen. Woolridge said.
But Sen. Wendell Hollis (UBP), who disclosed he is a director of car dealer Holmes, Williams and Purvey Ltd., said while some Senators suggested the existing law protected car dealers, he strongly supports the new one.
"What didn't make sense was to destroy perfectly good cars and import new ones,'' he said. "Bermuda was doing a disservice not only to itself, but to the world, by throwing away good cars.
"It made no economic sense at all.'' As for Sen. Woolridge's concern, Sen. Gordon noted the car will have to be tested by the Transport Control Department any time it is sold. And the rule is "caveat emptor,'' or "buyer beware,'' Sen. Hollis said. A potential purchaser has the option of having the car tested by a mechanic, he said.
Senate vice president Sen. Norma Astwood (Ind) warned the new law could actually increase the distance between economic classes in Bermuda. Those who can afford to buy a new car each year will do so, while others drive "rust buckets painted over,'' she said.
But Management and Information Services Minister the Hon. Michael Winfield said those who own automobiles are quick to support limits on others getting cars, but there are "those who don't own cars that need cars''.
The bill passed unanimously and will now go to the Governor to become law.
The Hon. Pamela Gordon.
