Luxon vows CCD will be gone by year’s end
The government has confirmed its commitment to getting rid of the clean car discount (CCD) by the end of the year after revealing a list of its top priorities for the coalition’s first 100 days in office.
Ditching the scheme by December 31, 2023, is among 49 key actions that were announced by Prime Minister Christopher Luxon, pictured, at his first post-Cabinet press conference on November 29.
The CCD was first introduced in July 2021 and offers rebates to buyers of eligible zero or low-emissions light vehicles when those cars are first registered in New Zealand.
It was upgraded to a full feebate scheme in April 2022 with fees imposed on models categorised as high-emitters, which prompted National to label the scheme a “ute tax”.
Recent figures from Waka Kotahi show that at the end of September this year the CCD had made a net loss of $279 million.
The decision to axe the CCD comes as no surprise to the automotive industry after National and Act, two of the three parties that have formed the new coalition government, both pledged to take such action as part of their election campaigns.
Other measures in the government’s 100-day plan that affect the automotive industry, transport sector and associated businesses or organisations include:
• Introduce legislation to remove the Auckland fuel tax.
• Cancel fuel tax hikes.
• Begin work on a new government policy statement reflecting the new roads of national significance and new public transport priorities.
• Stop blanket speed limit reductions and start work on replacing the Land Transport Rule: Setting of Speed Limits 2022.
• Repeal the Fair Pay Agreement legislation.
• Introduce legislation to restore 90-day trial periods for all businesses.
• Begin disestablishing tertiary and vocational education provider, Te Pukenga.
Luxon says the plan is focused on rebuilding the economy, easing the cost of living, restoring law and order and delivering better public services.
“New Zealanders voted not only for a change of government, but for a change of policies and a change of approach — and our coalition government is ready to deliver that change,” he adds.
