Both incentives and scrappage fees needed

29 March 2007

Media Release

Both incentives and scrappage fees needed to get dirty vehicles off the roads

The country needs a combination of cash incentives to buy low emissions vehicles – and scrappage fees to quickly get health-damaging clunkers out of the national fleet.

The New Zealand Business Council for Sustainable Development says it agrees with the Motor Trade Association and vehicle importers that proposed and much-needed new controls on the emissions standards of vehicle imports may push prices up.

However, the country needs to act to clean up the world's biggest vehicle fleet per head of population, which is also growing increasingly older as pre-2002 vehicles are imported from Japan, where they no longer meet that country's emissions standards, the Business Council's Chief Executive, Peter Neilson says.

The Independent Motor Vehicles Dealers Association reportedly estimates an $11,000 people mover van will cost $3000 more if the Government brings in Euro 3 emissions standards next year (for petrol vehicles) and in 2009 (for diesels).

"We need the cash incentive of up to $3000 for newly registered fuel efficient, low emission vehicles to make a big impact on the fleet at the front end.

"We also need to consider paying owners of health-damaging clunkers a cash incentive to buy a fuel efficient / lower-emission vehicle and turn in their old vehicle to be scrapped. If the older vehicles are not scrapped they will simply be passed on to a family member or friend that does not yet own a car and it will keep adding pollution and emissions to our air."

The Canadian Government, in its Budget last week, has done both.

Mr Neilson says the average age of a New Zealand vehicle has gone up from 10.5 years to nearly 12 over the past decade and is continuing to get worse.

According to the Motor Industry Association, a 12 year old car would have been put on the drawing board on or before 1990, using technology dating at the latest from the late 1980s – more than 16 years ago. The latest Euro IV emission standards are seeing vehicle carbon monoxide cut 98% below 1990 levels. The modern technology is also cutting vehicle emissions of hydrocarbons and oxides of nitrogen by 95%. Particulate matter has declined over 90%. One 1990s technology car is emitting 40 times more pollutants as one built in 2005. The Government is proposing Euro III emission standards at the boarder.

"The case for imposing higher emissions controls standards on new and used imports is extremely strong," Mr Neilson says.

"However, the Government needs a complete 'carrots and sticks' package to effectively influence people's behaviour and deliver air quality, health and climate change management benefits.

"We want the best safety and climate standards at the front end, but also need to help the family with a 15 year-old smokey diesel to get rid of it and buy fuel efficient / low emission vehicle.

"We should only be importing vehicles that meet the current best emission standards in the country of origin of Euro III and its equivalent or better standards.

"To make these policies work effectively the Government needs to extend its fuel saver website database to cover emission and pollution standards for the models in the New Zealand car fleet so that scrapping and purchase incentive offers can be sent to the owners of the least fuel efficient and most polluting cars."

ENDS

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