Business leaders welcome report officials investigating incentives for low-emission vehicle buyers

Business leaders are welcoming a report today that Ministry of Transport officials are investigating options for incentives to encourage people to buy low-emission vehicles as significant and welcome news.

The Ministry of Transport's Vehicle Energy and Renewables Group (VERG) is reported in Carbon News today as looking at ways of creating incentives for manufacturers to bring significant numbers of electric vehicles into New Zealand.

This would help the Government meet its energy strategy goal of 60 per cent of the national fleet being electric by 2050.

The MOT officials are reported as s also looking at how infrastructure might need to change to accommodate electric vehicles and "ways to make purchasing electric vehicles attractive for buyers, including encouraging buyers to purchase plug-in hybrid vehicles as a step away from fossil-fuelled vehicles."

It is also reportedly looking at what other countries are doing, for example Japan's Top Runner Programme, which offers incentives for purchasers of cars that produce fewer emissions.

The New Zealand Business Council for Sustainable Development says any move to introduce incentives for people to switch to more fuel efficient low emission vehicles will enjoy strong public backing.

The Business Council's Chief Executive, Peter Neilson, says ShapeNZ polling consistently shows high support for incentives.

When polling was last conducted on the issue in April last year, 84% of New Zealanders supported a policy which will pay cash incentives to buyers of fuel efficient, low emission cars (meeting Euro IV standards).

By party vote such an initiative attracted the following support: ACT 58%, Green 92%, Labour 90%, Maori Party 86%, National 80%, NZ First 79%, United Future 93%, undecided voters 85%.

The Business Council, whose 73 member companies' $44 billion in annual sales equate to about 34% of gross domestic product, has been calling for incentives to rapidly green the fleet since publishing a detailed study on the issue in late 2006.

"Our passenger vehicle fleet is one of the oldest in the world. The average age went up from 11.9 years in 2000 to 12.4 years in 2006. The average engine size has also gone up from 2 to 2.2 litres. Six out of 10 vehicles is over 10 years old, up from 57% in 2001.

"Our average vehicle age of 12.4 years compares with 10.1 years in Australia and only 6.3 years in the UK. On top of that we own more cars per head than most other countries in the world: 580 per 1000 people. Even the United States has only 481 per 1000," Mr Neilson says.

"It's quite clear that an incentives programme is needed to get new low-emissions vehicles into the fleet, and to also help retire those aged between 10 and 15 – rather than wait for them to pollute their way to the end of their normal 20-year life."

National talks of incentives to upgrade the fleet in its Blue Green policy discussion document.

"We have to hope policy proposals now come forward. Not only will it help us manage climate change and lower emissions, but also improve air quality and health.

"It's the sort of climate change action Kiwis can understand and will back overwhelmingly," Mr Neilson says. "Carrots are more popular than sticks. With the delay in putting an emissions price on liquid fuels by two years until 2011, we don't want to give up on action to improve the fleet.

"Heavy emitters are asking for subsidies on the basis their current capital stock isn't fit for a world in which there is a price on carbon. If it's good enough for a limited number of businesses to get help to adjust, then why not provide the same for car owners?"