Climate change ute tax soon gone: Days numbered for clean car discount

Any motorists looking to buy an electric vehicle have until December 31 to take advantage of the clean car discount.

EDITORIAL

The days are numbered for the clean car discount, with the Coalition Government axing the policy as one of its first acts in power.

The initiative subsidised the purchases of electric vehicles (EVs) by charging a tax on purchases of polluting vehicles.

It led to a massive uptake of EVs. In October, former Prime Minister Chris Hipkins said annual uptake of EVs and hybrids had risen by 180 per cent, compared with a 30 per cent decrease for petrol and diesel vehicles.

In October, former Prime Minister Chris Hipkins said the annual uptake of EVs and hybrids had risen by 180 per cent. Photo / Mark Mitchell

And, any motorists looking to make the switch now only have until December 31 to take advantage of the subsidy, which has typically meant thousands of dollars of savings for those buying newer electric or hybrid vehicles.

There is disagreement on what the axing of the scheme will mean for New Zealand’s carbon emissions.

Industry group Drive Electric said the policy, combined with a plan to weaken emissions standards, “could mean between 100,000 and 350,000 fewer electric cars on New Zealand roads by 2030″, and an increase in emissions of between 900 and 3000 kilotonnes.

Critics of the change pointed to the Health and Air Pollution in New Zealand study published last year which found air pollution from vehicle emissions was to blame for:

Last week, Transport Minister Simeon Brown (left) said that repealing the scheme would not have an impact on New Zealand’s emissions. Photo / Alex Burton

Transport Minister Simeon Brown, however, told the Herald last week that repealing the scheme would not have an impact on New Zealand’s emissions because transport is in the Emissions Trading Scheme.

Meanwhile, data released to the Herald last week showed which parts of New Zealand have been buying electric vehicles.

The country’s EV hotspots appear to be Auckland, Wellington and Christchurch. In Remuera, the top suburb for ownership, there are almost 700 EVs, followed by Flat Bush (524), Rolleston in Christchurch (518), Henderson (506), Mt Eden (453), Epsom (359) and Titirangi (338).

These figures illustrate an obvious point – that EV take-up has been strongest in better-off areas of the country.

The new Government shouldn’t lose sight of a more equitable way to lower vehicle emissions - encouraging public transport use. Photo / Michael Craig

And, quite apart from the impact of the clean-car discount on emissions is that it benefitted people who were already well-off enough to spend tens of thousands of dollars on newer vehicles.

Whatever the new Government does or doesn’t do to encourage electric vehicle use, it shouldn’t lose sight of a more equitable way to lower vehicle emissions — encouraging public transport use.

Developing policy and working with local government to power ahead with reliable, cheap and easy-to-use public transport options will switch on benefits for those who can afford the latest electric vehicle as well as those whose only option is to take a bus, train or ferry.