National pledge to end Clean Car Discount
16 October, 2023
The National Party has added more flesh to its promise to can the Clean Car Discount – confirming it will end the scheme on December 31 this year if elected to government.
The party has long committed to kill the policy and the so-called ‘ute tax’ and it has now added the date alongside a new $257 million investment proposal to deliver another 10,000 public EV chargers by 2030.
In a statement issued following Wednesday’s press conference held by transport spokesperson Simeon Brown and party leader Christopher Luxon, the party repeated its issues with the discount scheme.
It says Labour promised the scheme would be fiscally neutral but claims it is actually requiring taxpayers to provide $281 million in loans to the NZ Transport Agency to cover the cost.
“National does not believe New Zealanders who can afford a brand-new electric car need a subsidy from taxpayers to buy it. The move to EVs will happen without subsidies as those who can afford new cars choose to reduce their personal carbon footprints and their dependence on fossil fuels,” Luxon says.
“The subsidies funded by Labour’s ute tax don’t go to low- and middle-income New Zealanders, but to people who could already afford to buy an EV. And it is deeply unfair to tax work vehicles like utes and vans that farmers and tradies need to do their jobs in order to subsidise the cost of EVs.
“The Ministry of Transport has admitted the ute tax and EV subsidy scheme is fiscally unsustainable, meaning it will continue to require ongoing taxpayer funding.
“National will end this unnecessary, regressive, and fiscally irresponsible scheme by 31 December 2023,” Luxon says.
The move is likely to exacerbate issues with market manipulation the industry is currently experiencing. Even with National yet to win the election, sales of rebate-attracting vehicles are likely to spike, and those attracting high fees like utes reduce, as the deadline approaches.
Source: https://autotalk.co.nz/breaking-national-pledge-to-end-clean-car-discount-december-31/