GOVERNMENT is setting up new initiatives to assist used car dealers.

Minister of Commerce, Consumer Affairs and Business Development, Senator Lynette Eastmond, said they planned to carry out a study on the used car industry.

"I met with them a few months ago and had comprehensive discussions about the future of the sector. There are a number of systems that need to be put in place, things like the valuation of cars in Barbados," she told the DAILY NATION in an interview yesterday.

Her comments came in light of the outcry by used car dealers that they were losing money and even going out of business due to their vehicles being held up in the Bridgetown Port.

Eastmond said the island did not have such a system to determine the exact value and rate of depreciation of vehicles. She said they were now developing terms of reference and should start the valuation process by year-end.

"We also discussed forming an association and I encouraged them to establish a body as soon as possible. We will be working towards establishing standards in the industry as it is another means of developing industry in Barbados."

Problems began last December when the Customs and Excise Department impounded over 300 used vehicles and initiated investigations into alleged under-invoicing.

Eastmond pointed out that it was the Ministry of Finance and not her ministry which dealt with the issue of under-invoicing and the Customs Department.

In May, Shazar Distributors took Customs to court after the department impounded three vehicles claiming they were under-invoiced.

A month later, Justice Elneth Kentish gave Customs 48 hours to assess duties, impose them and release the vehicles but Customs asked that a bond be placed.

This led to the used car dealers complaining about being unable to service the bond and about high storage tax, among other things, which were slowly putting them out of business.

carlosatwell@nationnews.com