Apparently, there are already a few police cars on the road equipped with
an automatic device which can read numberplates and determine in real
time by interrogating the DVLA computers whether the vehicle is taxed,
insured and (I think) MOTed. This is all done without intervention of the
police officer. It just sounds a warning buzzer and flashes up the number
of the offending vehicle. Apparently they have been very successful in
picking up some of the alarmingly large number of illegal vehicles. I
suspect that this will supercede the need for a numberplate microchip.

Exactly what I was saying, the system in the article already exists and
is in use - it is only the microchip/transponder that is not yet in place.

The problem with that system is that it is very easy to fake a number
plate, or obscure it so that it is unreadable.

I'm not saying that a transponder cannot be "faked" in some way, but
it is not as simple walking around the car park until you find a car
the same as the one you nicked, take down its number and walking
into Halfords to get them to make you up a set of plates of the same
number. (yeah, I know Halfords now ask for the V5, but it ain't
difficult to find someone who will do them without one)

Matt.