Ordinary Kiwis pay for Dubious Environment Benefit

Press Statement
Independent Motor Vehicles Association

Ordinary Kiwis to pay for Dubious Environmental Benefits

New Rule will force up Vehicle Prices

Proposed restrictions on used car imports will increase the cost of basic cars by up to 50% and have no positive environmental benefit, says IMVDA chief executive David Vinsen.

The draft emission rule announced today by the Associate Minister of Transport will immediately restrict used imports, reducing availability and choice of cars, 4WDs and commercial vehicles.

The means a cut of up to 95% of used commercials, and a 50% cut in total import numbers, causing a huge increase in the cost of used vehicles. The replacement for a basic used import car that now sells for $9,000 to $10,000 will be one costing $15,000 to $16,000. Used trucks will double in price.

New Zealanders will not be able to easily upgrade to newer imports, and will have to keep their current vehicle for longer. The national vehicle fleet will, as a result, be older and generate more pollution.

This is the exact opposite of what we should be aiming for: a newer vehicle fleet with better emission performance.

Even the Government’s own experts do not believe the proposed emission rule will have a positive effect.

The Ministry of Transport commissioned consulting firm COVEC to evaluate the impact of the rule.

Their best possible scenario – where every potential buyer upgrades to a vehicle that conforms with the new rule- shows an environmental benefit of less than half a per cent. The most likely scenario – where half the potential buyers upgrade – shows an increase in pollution from emissions of two per cent.

The IMVDA believes that the motor trade can work with government to achieve their aims of reducing emissions without any of these negative effects. The main cause of emissions is the older vehicles currently in the fleet.

To reduce the age of the fleet we need to continue to import newer vehicles as well as introduce emission standards in phased steps. Secondly, government must crack down on existing high emitters by enforcing current Warrant of Fitness standards.

Both of these measures will decrease emissions over time without a negative impact on the car-buying public.

ENDS

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