I don't think there's ever going to be a fully-foolproofed system that ensures all cars are safe to drive, not unfairly penalise the less wealthy motorist and cut out fraud on both sides of the equation.
Whilst having MOT testing centres that do not offer any other services, this wouldn't stop them entering into "agreements" (even if a VOSA/council centre - corrupt civil servants wanting some cash on side does happen [probably more so in the gallic/southern EU countries]) with local garages/mechanics to "get" business. It would likely reduce the number of cases though.
As regards when to start MOTs and their frequency thereafter, as has been said there are a lot of factors, including type of usage and mileage covered per year - 20k motorway miles is a lot less strenuous on a car than short in-town journeys or belting around pothole-ridden, muddy country lanes.
Given the dangerous lack of maintenance that many cars have, I would not be in favour of biannual tests on a blanket basis - maybe for cars under 10 years old and that have not failed on serious issues such as badly worn tyres, brakes or other obvious and serious issue. Maybe owners could be put on "probabtion" if they failed on such issues and would have to have annual, maybe even six-monthly tests in some very serious cases until they demonstrated they could look after their car properly (even taking the car away/scrapping them [at the owner's cost]/revoking their licence for serial/serious offenders), and would transfer with the person, not the car.
Similarly, MOT testing centres, garages and their staff/owners should also be seriously held to account for corrupt/illegal behaviour in this regard, with stiff penaties for serious/repeat offenders, including banning from working as a tester/mechanic (having all such people get certified qualifications with penalty clauses for poor behaviou would be useful) and owning such establishments (even closing them down as well) would be good. A confidential helpline, similar to that operating in the contruction and rail indutries could help whistle-blowers bring such people and their activities to the attention of the authorities, who should take these things more seriously (as often they lead to high levels of criminality as people involved get used to "getting away with it").
Its a shame that more car manuafcturers don't offer more "basic" cars without most of the toys, and the EU bothered to check which so-called "safety features" on cars are just gimics (e.g. tyre pressure monitoring, which are unlikely to prevent a blowout, stability control [to a degree], which in some cars [e.g. the Ford Fusion, according to people I know who own them] where its used to reverse very poor handling [how much difference would it make if the car had been properly designed in the first place to handle well?], etc). IMHO, too many "safety features" thesedays are used to cover up poor car maintenance (keeping your tyres correctly inflated) or driving skill (automatic lights, wipers, stability control, ABS [to a degree]), which often leads to people taking less care of their vehicles and driving faster and more recklessly.
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