.....but changes gear with Clean Car Discount when targets are delivered too quickly
In one new statement posted on the government’s official website, Transport Minister Michael Wood says the Clean Car programme will reduce 50 per cent more emissions than originally estimated by 2035.
We can only marvel at Minister Wood’s certainty about those numbers when he and a colleague have launched “a rapid review” of KiwiRail following a breakdown of critical equipment that led to major disruptions for Wellington passenger rail users.
When the state-owned rail company can’t run its trains on time – or can’t run some train services at all, too often – the Minister can only be admired for being so confident about what the Clean Car programme will deliver some 12 years hence.
The Point of Order editorial team, on the other hand, is far from confident they will be here in 12 years to report to readers on whether the programme delivers the goods as Wood is promising.
We are much more confident the PM will do what he says he will do a few days hence: he will be in London where he will:
The Point of Order editorial team, on the other hand, is far from confident they will be here in 12 years to report to readers on whether the programme delivers the goods as Wood is promising.
We are much more confident the PM will do what he says he will do a few days hence: he will be in London where he will:
- Meet with British PM Rishi Sunak at 10 Downing Street “to advance the two countries’ Free Trade Agreement”;
- Visit NZDF personnel training Ukrainian troops outside of London and announce additional support; and
- Attend a “climate change event” to look at how horticulture and agriculture can adapt and build resilience in the face of more extreme weather events.
Hipkins will also attend the Coronation of King Charles III and Coronation engagements.
He is not travelling with KiwiRail. This fortifies our confidence he will get to where he is headed more or less on time.
His travel plans – along with Wood’s announcements – can be found HERE:
Latest from the Beehive
The Government is making targeted changes to ensure its highly successful Clean Car Discount policy will keep driving down emissions, says Transport Minister Michael Wood.
The Minister of Defence Awards of Excellence for Industry have been announced at Parliament tonight.
The Cyclone Recovery Minister has outlined the three categorisations of property in areas affected by the severe weather events earlier this year.
Prime Minister Chris Hipkins has announced he will meet his UK counterpart Rishi Sunak at 10 Downing Street this week to advance the two countries’ Free Trade Agreement (FTA).
The Government is launching a rapid review into KiwiRail following a breakdown of critical equipment that led to major disruptions for Wellington passenger rail users.
The review of KiwiRail will inquire into whether it is appropriately focused on the delivery of reliable commuter services, if its engagement with stakeholders regarding this breakdown was adequate, and what changes are needed to prevent reoccurrence.
Woods huffed:
“The disruption of Wellington train services this week is not good enough and follows other similar instances of service disruptions to commuters on KiwiRail’s network.”
KiwiRail has accepted responsibility for “the missteps” which will result in further disruptions to services this week – good for them – and has reassured Wood it is acting quickly to restore fully functional services for commuters.
Since 2017 – State-owned Enterprises Minister Duncan Webb reminded us – the government has invested $8.6 billion “to build a resilient and reliable network” after decades of neglect and decline
Obviously this has yet to be accomplished.
Much of the work has been replacing tracks, installing new culverts and bridges, and upgrading turnouts, for a safe and effective network.
Last week the government announced a fleet of 18 brand new trains for Wairarapa and Kapiti Coast to support the introduction of express services which will attract additional commuters.
But meanwhile commuters are looking for other ways of getting to work, and the government is anxious to discourage them from driving gas-guzzlers.
Accordingly it is changing the Clean Car programme, which – according to the minister – has been more successful than the forecasters expected (another way of saying the forecasters got it wrong).
“With over 100,000 rebates granted since the scheme came into effect in 2021, we currently have one of the fastest uptakes of EVs in the world.
“The scheme is successfully exceeding industry and government projections, with 20 percent of all new passenger car sales being electric in 2022. A substantial increase from eight percent in 2021.”
The scheme is facilitating an increase in the number of EVs entering the fleet that the government did not expect would be achieved until 2027.
“As planned we are further targeting the scheme to maintain its success, and ensure it will be self-funding until its next review.”
The government is targeting rebates for new and used imports emitting less than 100 grams of CO2 per kilometre compared to 146 grams under the original scheme. This will include battery electric vehicles, and plug-in hybrids.
The rebate for used EV imports will also increase, meaning New Zealanders will save up to $3,507 per vehicle, helping many low and middle income New Zealanders get into lower emitting vehicles they otherwise couldn’t afford.
The scheme is forecast to save New Zealand from importing 1.4 billion litres of petrol. At current prices the economy will save an average of $325 million a year less on fuel, out to 2035.
It is also forecast to reduce emissions by 3.4 million tonnes by 2035. That’s an additional 50 percent out to 2035 over and above what was forecast when it started. It will deliver twice the emissions reduction forecast between the start of the scheme and 2025.
More information about changes to the Clean Car Discount, including an updated rebate/charge pricing calculator, is available on the Ministry of Transport website.
Emissions from our light vehicle fleet are the single largest source of transport emissions in New Zealand, thanks in part to us having some of the most fuel inefficient and emissions intensive vehicles in the OECD.
The average CO2 emissions ratings of imported light vehicles in 2022, both new and used, have decreased by 14.4 percent when compared to the 12-month period before the Clean Car Discount was implemented – seven times faster than the 1.9 percent average annual decrease of the five years prior to the Clean Car Discount.
The Taxpayers’ Union is among the critics of the change announced by Wood.
In the middle of a cost of living crisis, raising the taxes on utes and other, so-called, gas guzzler vehicles “is a kick in the guts to provincial and rural communities who already have it tough post-cyclone Gabrielle”, says union spokesman Jordan Williams.
The union is calling for Hawke’s Bay, East Coast, Northland, and the Coromandel to be spared from the Ute Tax to allow those needing to replace work vehicles to do so affordably.
“There still not a practical electric ute,” Williams points out.
“That means those importing a second hand ute to replace one of the hundreds lost due to the flooding, are now forced to pay even more for it. This is a kick in the guts to those who can least afford it, for the sake of politicians and the urban elite who are eyeing up a Tesla.”
Federated Farmers transport spokesman Mark Hooper said this was another cost imposed on a productive sector already under huge pressure with rapidly increasing costs and slipping commodity prices.
Farmers don’t have viable or reliable alternatives to get the job done on their farms – and now the Government is increasing the tax, Hooper said.
The announcement will increase the maximum fee charged on the registration of a new ute to $6,900 (up from $5,175 previously), and the registration of a used ute to $3,450 (up from $2,875).
“Farmers shouldn’t be taxed on their work vehicles to subsidise wealthy Tesla owners in Remuera and Karori. That’s just wrong.
“Today’s announcement is a bitter pill to swallow for farmers who are already being hammered with all sorts of cost increases,” Hooper said.
Instead of heaping new costs on to a productive sector, the Government should be focusing on sorting out the state of our pothole-riddled rural roads, he said.
Without that being done, farmers might need a ute to go anywhere.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
1 comment:
It is whole of life whole world CO2 which really matters. I am very sceptical that the misnamed Clean Car Act by encouraging complex short lived EVs will acheive that. Much more emphasis should be placed on economical combustion vehicles; years ago families got by with vehicles much smaller than today. With a speed limit of 100 kph and very slow in towns the need for 100kw plus giant utes is questionable. I suspect most are bought, as in America, primarily for the macho image.
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