NZ First halts feebate for electric vehicles

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 has two parts: a Clean Car Discount, or ‘‘feebate’’, which would subsidise the cost of a clean vehicle by making polluting vehicles cost more; and a Clean Car Standard, designed to encourage importers to import cars with better emissions standards.

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

It is understood that the measure was weighed up by the NZ First caucus, which decided such a policy needed to go to the electorate.

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

The policy was announced by Green Party Associate Transport Minister Julie Anne Genter last July and went out for consultation, which finished in August. Little has been heard about it since then.

Shaw said it was ‘‘something the Government is continuing work on’’.

‘‘Moving to clean, green transport is vital if we are going to ensure a safe planet for our kids and grandkids.’’

During the consultation, the policy came under intense scrutiny from the National Party, which launched an aggressive online ad campaign, labelling it a ‘‘car tax’’. Complaints were made against the ads, some of which were upheld by the Advertising Standards Authority.

The policy would make some cars up to $8000 cheaper, while others would be $3000 more expensive. The idea is to add incentives for purchasing cleaner cars, while adding disincentives to purchasing dirtier ones. Money from the charges levied on polluting vehicles would be used to pay for the subsidy on cheaper vehicles.

Attacks on the policy criticised the fact that motorists in rural areas who could not purchase subsidised cars would be hit by the additional fee. NZ First was lobbied by rural industries.

National MP Chris Bishop described said the impasse was ‘‘an utter humiliation of Julie Anne Genter and the Greens’’.

‘‘Despite all the rhetoric, this Government has exactly the same policy when it comes to EVs as the previous Government,’’ he said.

‘‘It’s good the Government is seeing sense.’’

It’s been a rough few months for the Government’s low-emissions transport agenda. Its plan to build a light rail line in Auckland has been dogged by delays. Stuff this week revealed that there were just 16 electric buses used for public transport, despite a push to decarbonise the sector.

The ‘‘feebate’’ was broadly supported by the auto industry. The Motor Industry Association said the feebate was ‘‘the most powerful policy available to this Government to influence car purchase decisions’’, but criticised the Clean Car Standard.

Grieg Epps of the MTA agreed. His organisation had concerns that there would not be enough low-emissions vehicles in the Japanese market for New Zealand to import under the Clean Car Standard.

‘‘NZ First are holding up the rollout of policy that would mean cheaper electric and hybrid cars for New Zealanders.’’

Green co-leader James Shaw