Scappage scheme proves it's government for the Peoples

THE government's car scrappage scheme helped Peoples, the car dealer, to double profits which were also boosted by cost-cutting, falling VAT and low interest rates.

Chairman Brian Gilda said Westminster's decision to encourage motorists to trade in their old vehicles contributed to a 6.3 per cent rise in sales to 141.2 million. Profit before tax and preference share dividends rose 101,5 per cent to 3.03m.

As he prepared to reopen a dealership opposite John Lennon airport in Liverpool today, following a 1.4m makeover, he said the year ahead was more uncertain as consumers were taking "a long hard look at discretionary spending until their jobs and incomes can be safeguarded".

He warned that the VAT rise in January will also affect the economy and the company. "However, we will continue to review all revenue and cost items to ensure we are as fit as we can be to best tackle the marketplace," he said.

Peoples operates dealerships in Edinburgh, Falkirk and Livingston and three in Liverpool and sells only Ford vehicles.

As highest paid director, Gilda earned 274,895 against 263,358 in 2009. He also received a dividend payment of 297,328.