Why Nats and ACT shouldn’t pull the plug: EV registration data electrifies govt into championing its Clean Car rebates
Fresh data on the electrification of the nation’s car fleet gave the PM and his Transport Minister something to trumpet as a policy triumph in the last few days before General Election votes are counted.
Or maybe their press statement was the product of last-gasp politicking, because the fresh data related to the uptake of the Clean Car Discount, which National and Act have said they will scrap if they make it into government.
The scheme came into effect in 2021 to give subsidies to the buyers of low-emission cars while heaping higher costs on buyers of newly registered higher-emission cars.
Earlier this week, 1News reported it had pulled data from the Waka Kotahi database which showed there had been a steady increase in electric-powered vehicles being registered here for the first time.
Their percentage share peaked in September this year at 42.3 per cent of all cars.
But whoa: the Motor Trade Association’s chief executive, Lee Marshall, said it was his organisation’s view that the uptick in electric cars would likely have happened, rebate or not.
“There’s probably almost no doubt that it did make a little bit of difference,” he said.
“But if you look at what’s happening globally, the uptake of EVs is happening dramatically in every developed country. The main reason being the manufacturers of the world have decided that’s the future.”
He said he would rather the money spent on the rebate went to increasing electric vehicle infrastructure nationwide, instead of giving around $8000 in rebates to cars worth around $70,000.
The government today is challenging that thinking: Chris Hipkins insisted the Clean Car Discount is driving a big increase in electrified vehicle uptake and is making a real contribution to the government’s climate goals.
The statement sits alongside news on the Beehive website that tells us –
Earlier this week, 1News reported it had pulled data from the Waka Kotahi database which showed there had been a steady increase in electric-powered vehicles being registered here for the first time.
Their percentage share peaked in September this year at 42.3 per cent of all cars.
But whoa: the Motor Trade Association’s chief executive, Lee Marshall, said it was his organisation’s view that the uptick in electric cars would likely have happened, rebate or not.
“There’s probably almost no doubt that it did make a little bit of difference,” he said.
“But if you look at what’s happening globally, the uptake of EVs is happening dramatically in every developed country. The main reason being the manufacturers of the world have decided that’s the future.”
He said he would rather the money spent on the rebate went to increasing electric vehicle infrastructure nationwide, instead of giving around $8000 in rebates to cars worth around $70,000.
The government today is challenging that thinking: Chris Hipkins insisted the Clean Car Discount is driving a big increase in electrified vehicle uptake and is making a real contribution to the government’s climate goals.
The statement sits alongside news on the Beehive website that tells us –
- The Port Waikato by-election – necessitated under the Electoral Act by the death of ACT candidate Neil Christensen before the general election – will be held on Saturday 25 November.
The by-election Writ Day will be Monday 16 October.
The deadline for candidate nominations to be received will be midday Friday 20 October, and the last day for the return of the Writ will be Friday 15 December.
- After a review of the dairy quota allocation system, the government will make changes which – among other effects – will open quota access for non-bovine dairy exports, such as sheep and goat products.
Latest from the Beehive
11 OCTOBER 2023
Latest data confirms that the Clean Car Discount is driving a big increase in electrified vehicle uptake and is making a real contribution to our climate goals.
10 OCTOBER 2023
The Port Waikato by-election will be held on Saturday 25 November, Prime Minister Chris Hipkins announced today.
Following a review of the dairy quota allocation system, the Government will progress changes to the system in order to maximise opportunities for our dairy exporters.
In the statement from Chris Hipkins and David Parker on the Clean Car Discount, the PM dipped into the same statistics which 1News had examined on Sunday and regurgitated what he found:
“In September we passed the 150,000 milestone, with 156,000 rebates paid to EV and hybrid customers since July 2021, when the scheme started.
“Electrified vehicles now make up more than half of all new vehicles and used imports registered in New Zealand. The upsurge has been kick-started by the Clean Car Discount, and the climate benefits are all too clear: average emissions from newly-registered vehicles have dropped by nearly 33 per cent since July 2021.”
Hipkins went on to draw attention to the environmental effects:
“This Government’s Clean Car Discount policy is already contributing to New Zealand’s steady reduction in climate emissions, and that effect will accelerate as we continue to electrify the vehicle fleet. Removing the discount would put our climate goals in jeopardy,” he said.
David Parker agreed the latest data confirmed the success of the Clean Car Discount.
“The rate of EV and hybrid registrations is climbing – they accounted for more than 53 per cent of all new vehicle registrations since July, compared with 39 per cent between April 2022 and June 2023.”
He brought environmental data into account:
“Average carbon dioxide emissions from newly-registered vehicles are now at the lowest rate ever, at 126 grams per km. When the scheme started, the rate was 188 grams per km.
“The Clean Car Discount is the key factor in greening New Zealand’s vehicle fleet. Annual uptake of EVs and hybrids has risen by 180 per cent, compared with a 30 per cent decrease for petrol and diesel vehicles.
“The impact of the scheme was clearly shown when it was expanded in April 2022 to encourage hybrids and discourage high emission vehicles. That same month, average emissions from all newly-registered vehicles dropped from 205 g/km to 131 g/km, due to a surge in hybrid sales and a big drop in petrol and diesel. Recent changes in July 2023 have led to hybrid registrations outnumbering petrol car registrations.
Parker apparently was so chuffed with a part of this that he repeated it:
“The Clean Car Discount is the key factor in greening New Zealand’s vehicle fleet. Annual uptake of EVs and hybrids has risen by 180 per cent, compared with a 30 per cent decrease for petrol and diesel vehicles.
Then he referenced research by the Energy Efficiency and Conservation Authority, which found that 62 per cent of EV owners bought their EVs sooner than they otherwise would have because of the Clean Car Discount.
“The evidence is clear that the Clean Car Discount is driving up electrified vehicle numbers and driving down our emissions,” he said.
- Link to Waka Kotahi September Clean Car Discount report
- Link to EECA EV research (page 8):
The dairy export quota system was introduced in 2007 and allocations are set each year by the Ministry for Primary Industries. Access into export markets via quotas mean dairy producers are able to export with preferential conditions such as zero tariffs.
Quota allocations are now based on each dairy companies’ share of milk solids collected from farmers. This excludes businesses which don’t collect milk solids but want to export dairy products into quota markets.
The improved system will instead move to allocation based on each company’s share of total exports by volume of the relevant product, including exports to non-quota markets.
“Moving away from the prohibitive milk solids model will also open up quota access for non-bovine dairy exports – like sheep and goat products – and provide new room for growth and innovation.”
“These changes will ensure that we have a dairy quota system that is fair and provides opportunities for everyone – including small businesses and Māori enterprises.”
A system which provides opportunities for everyone (you would think) means that it provides everyone.
O’Connor nevertheless has emphasises that small businesses and Māori enterprises are not being excluded.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
2 comments:
The only merit of the ludicrously named "clean car discount" is that it encouraged light, small capacity, low consumption ic vehicles which will pass down and serve ordinary folk for decades. CO2 is not a dirty gas; we breathe tons of it and live in it. The only test which should be applied is whole of life whole world CO2 production, including esatblishment/renewal of support structures. The greatest contribution is to keep on the road your old car, assuming it not more than 25 or so years old or grossly heavy.
It's difficult to find an economist who doesn't accept that any kind of subsidy only causes a temporary distortion of the market and gives the supply chain an opportunity to hike their prices for a while.
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