Transport Minister Michael Wood says the introduction of the Clean Car Discount scheme is already influencing imports.
New and used cars being registered from today onwards could be cheaper or more expensive depending on how much of a gas guzzler it is (file picture). Photo: 123RF
Since last July a rebate scheme has been in operation for new and used imported electric and plug-in hybrid vehicles.
From today the Clean Car Discount is based on carbon dioxide emissions.
Low emission vehicles are now eligible for a rebate, and high emission ones a fee, with a middle band of cars not paying or receiving anything. It does not apply to vehicles currently on the road - only newly registered ones.
Fully electric new vehicles are $7500 cheaper, and high emitting ones up to $4500 extra.
"Clean car programme ... is going to give more people more choices to get into clean and efficient vehicles" - Michael Wood
Wood said importers are already plugging into the scheme.
"They are bringing in relatively more efficient utes that attract a lower charge, so it's already affecting the behaviour there, getting cleaner vehicles into the country and actually those more efficient utes in the long run will save money for the people who use them because they'll be cheaper to run."
When hybrid and electric utes are eventually imported to New Zealand, they will be eligible for a discount, Wood said.
In the last couple of weeks, vehicle importer LDV has started to take orders for the first fully electric ute in New Zealand, he said.
"I'm also hearing from other importers in New Zealand [is] that the clean car programme is helping them to get cleaner vehicles into our country and we will see over the next 12 to 24 months that extend into utility vehicles as well."
Wood said there was no evidence that the additional costs of importing more polluting vehicles would have a price impact on the supply chain causing price increases.
More than half of the utes bought and sold in New Zealand are not imported and so will not attract the levy, he said.
Wood rejected criticism from the National Party that the Clean Car discount will have a negative impact on farmers.
"The clean car programme that we've introduced is going to give more people more choices to get into clean and efficient vehicles and that goes for people in every single part of the country."
However, the National Party is accusing the government of piling more costs on people.
Its transport spokesperson, Simeon Brown, said the Clean Car Discount will have a negative impact on farmers and tradies who need utes to do their jobs and contribute to the economic recovery.
Half-price public transport fares come in today
Wood said the government would be looking to see whether the half-prices fares have any impact on public transport usage.
"We fully expect that as well as saving Kiwis money, it's also going to encourage more people to give public transport a go and that's a good thing - it reduces our emissions, it reduces congestion and it gives Kiwis more choices."
Half-price public transport fares for three months announced by the prime minister two weeks ago as part of relief measures to address rising living costs, come into play today.
The government has invested around $40 million which has been passed to local government to deliver the difference that it will cost to deliver the half-price fares, Wood said.
Disabled public transport users will receive the half-price fares via the Total Mobility scheme, he said.
Wood said initially the scheme will be in place for three months.
"We're continuing to look closely and to consider whether there are other things that we could do to make public transport more affordable in the long run."