Clean car upgrade axed

The government’s vehicle scrappage scheme is the latest transport policy to fall under Chris Hipkins’ axe as he looks to save $1 billion to reallocate to support New Zealanders during the cost-of-living crisis.

The Prime Minister is aiming to save $568 million by canning the clean car upgrade, whereby some households could have got rid of older, more polluting vehicles in return for a grant for cleaner, greener models or to pay for public transport.

Hipkins has also halted the government’s proposed social-leasing car scheme. That was aiming at providing vehicle-leasing arrangements to low-income families for cleaner cars, “but was proving difficult to implement and several communities where it was to be trialled have been affected by the recent weather”.

The cutbacks are among a second tranche of programmes being stopped or delayed “to allow the government to focus more time, energy and resources on bread-and-butter issues” facing Kiwis.

These are but two transport policies that have been deferred so Waka Kotahi can focus on the post-cyclone road to recovery, says Hipkins.

A speed-limit reduction programme has been significantly narrowed to focus on the most dangerous one per cent of state highways, while Auckland’s transport solutions to reduce emissions and congestion will be rolled out in stages.

Hipkins says: “This announcement doesn’t mean there won’t be more areas we will look at. My expectation is ministers will continue to prioritise their work programmes, including by rescoping plans and amending policy when necessary.”  

The second group of programmes set out on March 13 add to the already announced halting of the RNZ-TVNZ merger and biofuels mandate, and putting a hate-speech law and social-insurance scheme “on a slower track”.

“I want New Zealanders to know the government is doing its bit and cutting its cloth to suit the times we are in,” says Hipkins. “Some of these things we’re delaying or stopping mean a lot to us. But we’re taking the hard decisions because we know Kiwis are also making tough calls.     

“It will give ministers and wider government more bandwidth to deal with cost-of-living issues and cyclone recovery. The two lots of reprioritisation will save about $1b, which will be reallocated to support New Zealanders with the cost of living.

“That’s in addition to more than $700m in savings we reallocated to fund the petrol-excise cut and half-price public-transport extension through to the end of June.”

Transport in Auckland

Projects in the country’s biggest city will now be rolled out in stages. “Reducing transport emissions is critical to achieving climate-change targets, but we need to focus on areas where we can achieve the greatest reductions,” says Hipkins.

“With around one-third of the population estimated to live in our biggest city, it’s where we can make the largest single gains in future-proofing transport systems to tackle congestion and reduce emissions.   

“Work on Auckland Light Rail will continue alongside other investments like a second Waitemata Harbour Crossing, more rapid busways and better connections to growth areas like the north-west.

“But just like the London Underground took many years to develop, Auckland Light Rail will happen in stages – with the first expected to be confirmed by the middle of this year.

“There’s nothing new in taking a staging approach to significant projects. The Wellington Northern Corridor and Northern Busway, for example, are being delivered by successive governments in stages.

“Auckland Light Rail is no different. Staging the rollout will align it with other critical transport investments, particularly the second harbour crossing.

“Investing in a modern Auckland where people can get around, where there’s less congestion and cleaner travel options is the least the city should expect. Our cabinet is absolutely agreed on that.” 

What else is being reprioritised?

The government will be refocusing its goal of increasing and improving public transport as an alternative to driving in Auckland, Hamilton, Tauranga, Wellington and Christchurch.

It will significantly slash the speed-reduction programme to focus on the most dangerous one per cent of state highways and ensuring Waka Kotahi consults meaningfully with affected communities.

That means speed limits will reduce where there are the highest numbers of deaths and injuries, and where local communities support change. “We will continue to make targeted reductions in the areas around schools and marae, and in small townships that a state highway runs through,” says Hipkins.

Advice on the second part of legislation looking at alcohol reform that relates to pricing, sponsorship and advertising is being deferred to April 2024, rather than coming to ministers in March this year.

These are areas that need time to investigate properly and ensure there are no unintended consequences. For example, when community groups are doing it tough, the government doesn’t want to see restrictions on sponsorship increasing costs for community sports teams. Other changes include:

• Deferring work on the container return scheme that would see small refunds for returning containers because it’s estimated it will add a small cost to the average household.

• Delaying consultation on a new test to determine who is a contractor and who’s an employee. A recent Employment Court ruling has “significant” implications on the legal definition of a contractor, “so rather than pushing ahead with consultation on changes, we will put our work on hold until all appeals are heard”.

• Legislation to lower the voting age to 16 for general elections will not be introduced. “Instead, we will shift focus to lowering the age for voting in local body elections, which has stronger support in parliament.”