MTA wants feebates phased out

The Motor Trade Association (MTA) is calling for New Zealand’s next government to phase out the clean car discount (CCD).

It’s also campaigning for targets and goals laid down by the clean car standard (CCS) to be deferred by two years.

In addition, it wants tax-depreciation rules introduced that encourage businesses to take up EVs and other low-emissions vehicles (LEVs).

These are among the issues the organisation flags up in its call to action, which has been launched at parliament.

Called “Driving New Zealand forward – future proofing the automotive industry”, the 44-page document outlines what the MTA would like government to tackle after this year’s general election.

“The automotive industry supports the goal of decarbonising our sector,” states the MTA in its call to action, which was formally released on May 9.

“We agree this involves a two-pronged approach of supporting the uptake of low and zero-emitting vehicles, and reducing and discouraging high-emitting vehicles. 

“The current clean-car programme employs carrot and stick. We agree with this approach, but future settings for the ‘stick’ are unrealistic and unworkable. 

“It is clear there has been strong demand for LEVs. According to the Energy Efficiency and Conservation Authority, 2022 saw a 39 per cent increase in electric cars on our roads. The MTA applauds the uptake of vehicles that will protect our environment and health. There is no doubt the CCD has contributed to this positive outcome. 

“However, the parameters of the CCD have unfair and unfortunate social impacts. Offering a rebate on expensive EVs and a penalty for higher-emitting vehicles – while well-intentioned – has a ‘reverse Robin Hood effect’ of rewarding consumers wealthy enough to buy an EV while penalising those who are not.”

To meet the current government’s EV fleet targets, the MTA estimates New Zealand will need to import about 54,000 electric vehicles in 2025 to meet fleet emissions targets. In 2021, the number of EVs brought in was just 10,000 – a 440 per cent jump over four years. 

“The success of the CCD means New Zealand can follow the example of markets such as the UK, which has discarded its similar programme,” adds the MTA.

“Furthermore, projected emissions standards under the CCS are unrealistic and unsuitable for the New Zealand market. They would require New Zealand to meet targets and standards that would place us ahead of European markets.” 

It’s on this basis the MTA says the standard’s targets and goals should be deferred by two years.

Scrappage & stewardship

The MTA says scrappage and recycling schemes have important roles in transitioning our fleet to a more sustainable future. 

It’s lobbying for the government to work with it to create a scrappage scheme to get older, harmful or unsafe vehicles off our roads and assist motorists to buy LEVs. 

The association is calling for a scrappage scheme that’s fair and based on scientific rather than social evidence and aspirations. 

“Recycling must also be given priority,” it adds. “Most automotive businesses want to do the ‘right thing’ in disposing harmful waste. That includes recycling parts that would otherwise end up in landfills. 

“While the industry has taken the lead and is willing to continue developing programmes to aid with recycling and product stewardship, the next government can do much to support.”

To achieve this, it should consult with the MTA and other industry groups to ensure there are complete recycling programmes for all components, such as tyres, batteries, cooling systems and bumpers, and end-of-life strategies to encourage a circular economy. 

The association emphasises a scrappage scheme needs to be created that aims to replace older polluting and unsafe vehicles with cleaner and safer modern alternatives.

Message from president

Bob Boniface, president, says MTA members provide New Zealanders with the mobility our community relies on, and the association “uniquely bridges” vehicle and parts supply, maintenance, repair, fuelling and compliance suppliers.

“A huge 85 per cent of licence-aged individuals recognise the MTA brand… in an industry that adds $5.5 billion to gross domestic product, passing across the counter some $30b of goods and services,” he notes in his introduction to the association’s call to action document.

In addition to assisting its members, the organisation advocates for “regulatory and licensing policies that optimise the consumer benefits and participant efficiency in this vital part of our economy and society”.

Boniface, pictured, adds: “Our policy perspective and priority for the automotive sector are very simple – safe cars, safe air, safe roads. 

“The policy landscape is complex in the face of technological advances, climate change and health perspectives. This manifesto brings together the MTA’s insights into the efficacy of key policy settings and efficiency impacts on our industry, and promotes some alternate priorities for the next government we stand ready to work together on. 

“The resulting recommended policy imperatives will provide more ‘bang for buck’ for society, and less efficiency-sapping frustration and distortion for suppliers.”