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Transport initiatives will not see prices soar

Hon David Parker
Minister Responsible for Climate Change Issues

16 October 2006

Transport initiatives will not see vehicle prices soar

Climate Change Minister David Parker says proposals just announced by the government to modernise the cars on New Zealand's roads will not see vehicle prices soar, as was reported today.

The government is investigating ways to improve the fuel economy of vehicles, to reduce the greenhouse gases that contribute to climate change, and to reduce the harmful effects of vehicle emissions.

To do this, the government has asked the Ministry of Transport to work with the motor industry on a regulated sales-weighted fuel economy standard for new and second-hand vehicles. The Ministry is also considering an age restriction on used imports.

David Parker said it was important progress was made to reduce greenhouse gas emissions in the transport sector.

"The effect on prices is something we'll look at during the consultation period, but we do not expect any prices rises to be dramatic. In addition, improved fuel economy will mean consumers benefit from cheaper fuel bills."

ENDS

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