Feebate scheme hits roadblock
A government policy for a feebate scheme has hit a roadblock with New Zealand First putting the brakes on.
The proposal, which would see the likes of electric vehicles (EVs) attracting discounts of up to $8,000 and high-emitters being penalised, is one strand of the so-called clean-car policies put forward by the Green Party’s Julie Anne Genter, Associate Minister for Transport.
The feebate scheme, officially known as the clean-car discount, has been supported – in principal – by the automotive industry, while the clean-car standard, also called the fuel-economy standard, has been condemned as unworkable in the form it has been proposed.
James Shaw, co-leader of the Greens, has told Stuff that if NZ First ultimately decides to block the policy, his party would take it to the election, which appears to be a likely outcome.
It is understood this measure was weighed up by the NZ First caucus and it decided such a policy needed to go to the electorate.
“We can confirm NZ First is holding up the roll-out of policy that would mean cheaper electric and hybrid cars for New Zealanders,” says Shaw, pictured.
The policy was announced by Genter last July with consultation ending in August. Autofile Online understands the Ministry of Transport’s final workshop with industry officials under Genter’s direction was due to held at the end of February. The Motor Industry Association (MIA), VIA, Motor Trade Association (MTA) and AA have been involved in this process to date.
Shaw says the feebate scheme and fuel-economy standard are proposals the “government is continuing work on”. “Moving to clean, green transport is vital if we are going to ensure a safe planet for our kids and grandkids,” he adds. “It’s a common-sense measure.”
During the consultation process, the clean-car proposals came under scrutiny from National, which launched an online advertising campaign labelling the policy a “car tax”. Complaints were made against the adverts, some of which were upheld by the Advertising Standards Authority.
The aim is for the feebate scheme to be self-funding with money from the charges, or fees, levied on polluting vehicles to be used to pay for the subsidies, also known as rebates.
NZ First has been lobbied by rural industries that the proposals would have a regressive impact, reports Stuff, while National MP Chris Bishop describes the impasse as “an utter humiliation of Genter and the Greens”. He adds: “Despite all the rhetoric, this government has exactly the same policy when it comes to EVs as the previous government.”
Bishop believes more can be done to decarbonise the public-transport fleet. “It’s good the government is seeing sense on the car tax, which would have a negative effect on emissions and would have a punitive effect on people who can’t make the switch.”
However, the “feebate” is broadly supported by the car industry. The MIA describes it as “the most powerful policy available to this government to influence car purchase decisions”. Greig Epps, of the MTA, agrees, although his organisation has concerns there will not be enough low-emissions vehicles in the Japanese market for New Zealand to import under the clean-car standard.
The VIA put out a statement after news of NZ First’s intervention, saying feebates were “off the agenda”. “If implemented, these policies would have had huge implications for the vehicle import industry, seriously influencing the range of new and used vehicles able to be imported,” it says.
