CCS: National’s pledge to industry

National’s spokesman for transport has pledged his party will work with the automotive industry to overhaul the clean car standard (CCS).

Simeon Brown was among the guest speakers at a CCS management forum hosted by vehicle shipping and logistics company Moana Blue in Auckland on February 9.

He acknowledged it had been car dealers and the industry that had borne the brunt of frustration of consumers when it came to Labour and the Greens’ clean-car policies.

Brown described the CCS as a “very complicated and complex policy solution” for the issue of cleaning up our light-vehicle fleet, and reiterated his party will scrap the clean car discount (CCD) if it formed the next government. The MP, pictured, and National have labelled the CCD a “ute tax” on “hard-working Kiwis”. 

He recognised that major importers in New Zealand had come together for Moana Blue’s event, adding “we’re all of the same mind that we need to clean up our fleet and bring in cleaner vehicles, but we need to match that with affordability and availability”.

He said: “I’m not convinced we have got this right. Affordability and availability are issues, and then a complicated financial model has been added on top of that, so the industry is trying to meet three different goals. It’s a challenge for the industry going forward.

“National has so far taken quite an opposed approach because of the issues with the clean car discount and clean car standard. We opposed the legislation, but Labour has had the numbers to do what it wants and the reality is that this legislation passed.”

Brown described the CCD as a “reverse Robin Hood scheme with money being taken from people who do not have choices around what vehicles they need for those who can make their own choices”. 

He said “$64 million has gone to Tesla owners” under the feebate scheme, and that the $110m differential between rebates and charges “will only grow”.

As for the CCS moving forward, National sees “some merit” in it to help support the market transition over time, but standards need to be set with the industry on the affordability and availability side. 

“This policy has been rushed in too quickly and there hasn’t been adequate consultation with the industry,” said Brown. 

“Our commitment is to work with the industry on a detailed policy prior to the election to ensure a CCS and its systems are practical and achievable. There will need to be changes and flexibility so the government of the day can respond to what’s happening in the market.

“It will not work if the government has to dictate to the market what should be imported, and the biggest inhibitor with low-emissions vehicles is availability and supply.”

Brown said another barrier could be overcome by “radically” investing in the country’s charging network for electric vehicles because “in the longer term, that will make a bigger difference than just regulated change”.

He added: “We [National] will continue to engage with the industry and listen, and disclose our policy direction closer to the election. We will work together to get a better outcome and that is my commitment.

“We see a real opportunity for a fuel-economy standard with some tension in the system to reduce emissions, but within an affordability and availability framework so people will be able to get the cars they need.”

Brown warned that unless an overhauled CCS is introduced and achieves what it’s supposed to, Kiwis “will hold onto their existing cars for longer, so we will end up with higher emissions”.

As for other issues concerning the car industry, Brown noted that six-monthly warrants of fitness being required for light vehicles more than 20 years old hasn’t been extended and that policy has yet to be further progressed, although National has no plans in that area at this stage.

He commented there was “not a lot” in the government’s plans for a scrappage scheme. As for in-service emissions testing, he questioned what would happen to vehicles that fail to meet standards – if such cars would be banned from on-road use and who would pay for that.

Brown said: “We have cleaner and newer cars coming in, so we should not close the front end and expand the back end.”