The Government’s Feebate scheme

Part of the difficult delicate job of becoming carbon neutral is the need to fundamentally transform the country’s car fleet from gas guzzlers to clean electric vehicles in a fairly quick time.

For a while Labour and the Greens have wanted to install a feebate scheme, where the purchase of electric vehicles incentivised and the purchase of gas guzzlers is not incentivised.

The policy was announced in July 2019 but last February New Zealand First vetoed it.

From Thomas Coughlan at Stuff:

The Government’s headline policy to cut the price of electric vehicles by up to $8000 has stalled in first gear after NZ First ministers halted it.

The policy had two parts: a Clean Car Discount, or “feebate” which would subsidise the cost of cleaner vehicles by making polluting vehicles cost more and a Clean Car Standard, which was designed to encourage importers to import cars with better emissions standards.

Green co-leader James Shaw said if NZ First ultimately decided to block the policy, his party would take it to the election.

That now looks likely.

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.

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 are holding up the rollout of policy that would mean cheaper electric and hybrid cars for New Zealanders,” Shaw said.

There are some changes that have been made from the latest announcement and the previous announcement.

From the latest announcement:

“We’ve made some changes to the policy proposed last term, so only cars under $80,000 and safer models are eligible for rebates. Rebates will begin from July 1 while fees on higher emitting vehicles to help fund the scheme won’t begin until 1 January 2022. The rebates will also expand from 1 January to include low emission vehicles, not just electric and plug-in hybrids.

“Importantly the policy only applies to new and used cars arriving in New Zealand, so the existing second hand market of cars that lower income families tend to purchase from will not be affected.

“We’ve also been doing the work to ensure Kiwis have the confidence to go electric, with electric vehicle chargers now available on average every 75km along most state highways. The Government has been investing directly into charging facilities through the Low Emission Transport Fund (formally the Low Emission Vehicles Contestable Fund).

The estimate of the latest announcement is that it will prevent a total of 9.2 million tonnes of carbon dioxide emissions being emitted, compared to the previous announcement’s estimated 5 million tonnes of greenhouse gas savings.

The details of the new policy announcement are as follows:

I am sure National will run the usual disparage and confuse campaign at the announcement.  Last time Todd Muller who was Transport Spokesperson said that he was broadly supportive of the proposal.  Other Nats disparaged the policy as a tax take, even though it was revenue neutral.  And National was taken to task by the Advertising Standards Authority for false advertising.

The policy is being consulted on.  I am sure the culture warriors will attempt to derail it.

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