Call to make scrappage ‘future priority’

The Motor Trade Association (MTA) hopes politicians will revisit plans for a scrappage scheme in the near future after expressing its disappointment the clean car upgrade programme is being ditched.

Prime Minister Chris Hipkins has announced the $568m scheme is being shelved, along with a number of other policies, as the government seeks to free up cash to focus on relieving cost-of-living pressures.

The MTA notes it has long called for a scrappage system and applauded the government when details of the clean car upgrade were announced last year.

It says it supports efforts to reduce harmful emissions from transport and while the original proposal was not perfect, it was a “positive step” in helping New Zealand transition towards a more environmentally friendly fleet.

Brian Anderton, MTA’s advocacy and stakeholder manager, explains the clean car upgrade would have helped lower and middle-income households transition to low-emitting electric vehicles (EVs), plug-in hybrids and hybrid vehicles in exchange for scrapping their old vehicle.

“There was a long way to go in finalising the scheme, some of which would have been hopefully worked out during the pilot,” explains Anderton, pictured.

“We know many Kiwis are feeling the pinch and support efforts to address the cost-of-living crisis.

“But we urge the government to keep this as a priority in their future policy planning for the emission reduction plan.”

When the upgrade was first announced, the MTA felt it was too narrowly focused on EVs and its scope should have been broader “allowing anyone to participate and with lower incentives”.

The government had plans for an initial trial of 2,500 vehicles, with the MTA saying it hoped that if it proved unsuccessful the idea of scrappage to improve the fleet would not be shelved for 10 years.

A Kiwi scrappage scheme, according to the association, should address the fleet’s age and safety and also help address emissions.