The government is embarking on a major tariff and subsidy programme to get people out of gas guzzlers and into electric vehicles (EVs) but it’s already proved controversial.
Yesterday Transport Minister Michael Wood said people who buy EVs, such as the Nissan Leaf, would receive a subsidy of almost $8700 while those buying a petrol Toyota Hilux could be hit by as much as $2900 in tariffs.
The government is adamant transport emissions are the fastest-growing source of greenhouse gas emissions in the country.
But the opposition is accusing the government of hitting trade staff, farmers, and families with a hidden tax.
And Motor Industry Association chief executive David Crawford, who was on Tapatahi yesterday to talk about the new tariff and subsidy programme, said tradespeople and farmers would take a hit because of the vehicles they use for their work.
“We as an association have been asking for the government to have a package of policies around electric vehicles,” Crawford said.
“We need to move people more quickly away from higher-emitting vehicles to lower-emitting vehicles. But that means some sectors who need the heavier-duty vehicles are likely to get penalised.”
Some will struggle
Motor Trade Association chief executive Craig Pomare said whānau (Māori) would still struggle to buy some EVs, whether new or used. The cheapest purchase (EV) would be roughly $40,000.
“There's an opportunity here to have a target for more funding in specific areas and by that I mean groups such as Māori, those who are traditionally unable to access a higher price.”
But there are solutions coming for low-income families according to the government. Instead of ownership maybe “social leasing schemes” will work, Wood says.
In 2022 when the government has had time to pass the law and get the regulations going, it will turn into what’s known as a full feebate scheme. There will be three groups of vehicles, those vehicles that attract a rebate, a group of vehicles in the middle that will not get a rebate or pay a fee, and high-emitting vehicles paying a fee.
“Unfortunately the vehicles in the higher-emitting group invariably are the very vehicles that our tradespeople and farmers use," Crawford says.