Call to phase out discount
The Motor Trade Association (MTA) is lamenting that upcoming changes to the clean car discount (CCD) will do little to address what it calls the “reverse Robin Hood” effect that gives to the rich and continues to penalise hard-working Kiwis.
Lee Marshall, chief executive, says the announcement by the government to adjust the feebate scheme’s settings from July 1 should have gone further.
He adds the MTA supports the decarbonisation of New Zealand’s fleet and industry but wants to move to a future where the CCD is phased out.
“That’s because as long as we have the scheme in its current form, hard-working people who rely on larger vehicles and light commercial vehicles are being penalised, while people who can afford an EV are getting a little sweetener they don’t need,” explains Lee, pictured.
“Let’s be honest; if you were going to buy a Tesla for $60,000, you were also going to buy it for $65,000. But only a select few are wealthy enough to even consider that kind of decision.”
Part of the CCD changes will see the emissions level where rebates start to apply drop from 146g of carbon dioxide (CO2) per kilometre to 100gCO2/km.
Lee adds the effective removal or reduction of the discount for many hybrids and low-emitting petrol vehicles is disappointing.
“Both were much more in reach of most people than EVs and had an important part to play in emissions reduction,” he says.
“For example, a Suzuki Swift, which meets recognised emissions testing standards, used to qualify for around a $2,500 rebate – now, nothing.”
The MTA argues the clean car standard (CCS), which focuses on importers rather than consumers, is the best option to help reduce overall emissions and achieve a significant shift in the fleet if the correct target settings are in place.
Lee adds a plug-in grant scheme in the UK enjoyed early success before being discontinued last year, with attention switching to investment in infrastructure and wheelchair-accessible vehicles, taxis and trucks.
“That’s where our thinking should be – give the CCD a pat on the back for what its achieved, but now EVs are coming in, let’s make sure we have the systems in place to support them,” he says.
“It would also solve the problem for the government that the CCD has missed being self-funding by a mile. To continue the dream of ‘self-funding’ when the scheme is currently sat in a $200 million hole, while simultaneously topping up the fund available is confusing. And let’s not forget that fund is paid for by the taxes of all Kiwis.”
The MTA notes it will have more to say about the CCD on May 9 when it launches its call to action for the new government following October’s general election.
