Transport changes expected from government

Strong indications of support for electric vehicles and changes to transport have come from prime minister Jacinda Ardern’s state of the nation speech to a Business New Zealand breakfast in Auckland on February 8.

She says plans will be announced soon for legislation to establish “an enduring institutional framework for managing the long-term transition to a low-emissions economy”.

“This legislation will contain legally binding emissions reductions targets and it will see the establishment of an independent Climate Change Commission, which will recommend emissions reduction budgets and provide advice on policy development and initiatives in transport, energy and primary industries.”

Ardern also covered Brexit, the need to improve vocational training, and generally painted a bright outlook for New Zealand’s economy. However, some clouds on the horizon include a slowing global economy and increasing protectionist policies from some countries.

Her low emissions statements prompt Motor Vehicle Industry Association (VIA) chief executive David Vinsen to speculate that some incentives and encouragement for EV uptake are coming soon.

He says some people are saying incentives such as a possible feebate scheme could see people buying internal combustion engine (ICE) vehicles subsidising those buying EVs – “but I don’t think that’s the case”.

“It’s about sending clear financial signals and encouragement about the Government’s intentions to move towards a low carbon transport fleet.”

Vinsen says this is not setting a trend or breaking new ground but “admitting the inevitability of EVs”, particularly as sinking lid requirements on carbon dioxide emissions overseas are helping drive automotive manufacturers towards including more EVs in their range.

“In a few years, people will be limited in their choice of what vehicles will be available because of the large number of EVs which manufacturers will be offering.”

Britain’s moves to leave the European Union under “Brexit” is seeing New Zealand jockeying for its own trade agreement with the United Kingdom – but the fallout is having a beneficial effect on New Zealand’s used car imports from the UK.

“As a result of the pre-Brexit shenanigans there’s an opportunity in terms of the exchange rate and access to ex-lease vehicles because of companies selling up some of their fleets,” Vinsen says.

He believes that’s encouraging because “at this stage, the New Zealand vehicle market needs all the help it can get”.