MTA Says Govt Emissions Plan Won't Work

Motor Trade Association
Media Release 10 July 2007

MTA Says Govt Emissions Plan Won't Work - Proposes Better Option to Get Results

Motor Trade Association (MTA) says its studies show that the plan proposed by Government to restrict used vehicle imports, by only allowing the import of vehicles that meet selected emissions standards in Japan, will fail to achieve the breakthrough impact necessary to improve air quality.

Government claims that up to 399 premature deaths are caused each year by vehicle emissions

MTA Communications Manager, Andy Cuming, said that the planned restrictions will cut too deeply into the supply of the very vehicles needed to progressively update the national fleet of vehicles owned by millions of New Zealanders so that these lives may be saved.

"Reduced supply will mean that most vehicle owners will not be able to afford to upgrade to the models that will be permitted to cross the border under the Government's proposed new plan," he said.

"As a consequence, and directly contrary to government's objective, New Zealanders will hold on to their older cars longer, the average age of vehicles will get even older, and vehicle emissions will get worse, not better.

"Many of these findings were foreshadowed in research Government had itself commissioned earlier."

MTA has proposed to Government an alternative regime.

This would still involve using the Japanese technical emission standards, but in a manner that would recognize Japanese tolerances that allow the progressive phasing in of new standards.

In addition, MTA has called for a more comprehensive approach that deals with in-service issues during a vehicle's life, and further, incentives that accelerate the scrappage of old vehicles.

"We believe that the Government's pursuit of objectives of overt political appeal, rather than specifically identified and measurable targets, has not enabled them to foresee the dramatic impact such policies would have on New Zealand vehicle owners."

Andy Cuming said the government plan does not recognize the sheer scale of the existing national vehicle fleet that is required to be changed over to modern vehicles.

"There is an enormous number of vehicles that must be replaced so that our national fleet can be at the standard all New Zealand now sees as being essential for our future.

"This is the result of 20 years of a virtually total deregulated vehicle imports. There are 24 million vehicles registered, and their average age is 12.1 years," he said.

Andy Cuming said that replacement of the older sections of this fleet requires a smooth flow of sufficient numbers of more modern vehicles.

"The peak imports of the past two decades to satisfy New Zealand buyers have created what is now seen as the problem. Regular flows of more modern vehicles must be allowed to 'run down' the problem," he said.

"A smooth flow of higher technology vehicles enables progressive replacement to be achieved - but fundamental to this is continuing affordability.

"People must be able to afford to update," he said.

The plans proposed by Government were contained in a Discussion Document released in May for consultation with the industry and the general public. Submissions on the plan were due to be made by 9 July, followed then by a period of further consultation.

In it Government proposes that only those vehicles that meet the Japanese 2000-year emission standard for petrol light vehicles will be able to be imported from the beginning of 2008. There would be an even tougher standard for light diesel vehicles.

Subsequently, in an increasingly strict regime, Japanese 2005 standards would be used for imports from the beginning of 2010, and 2009 standards from 2013.

MTA's Andy Cuming says that these criteria are simply impractical,

"The detailed analysis we have now completed shows that used vehicle imports, which in 2007 are expected to be about 120,000-plus, would drop to less than 50,000 in 2008, if only those vehicles produced in Japan from 2000 onward were allowed to be imported."

But Andy Cuming said that the situation was even worse than this because of the "phase-in" period allowed Japanese automotive manufacturers by the Japanese government. This permitted manufacturers to "carry over" the previous emission standard until they were able to phase in the new standard with the next new model change.

"Under the New Zealand Government plan such vehicles would not be permitted to be imported into New Zealand from 2008 onwards - and these could be vehicles manufactured in Japan as late as 2003," he said.

Andy Cuming said that MTA had completed an analysis of the 100 most popular models imported into New Zealand to establish the potential impact of this factor.

"This can be determined very accurately from Japanese production records.

"This analysis tells us that the number of used vehicles able to be imported into New Zealand from 2008 would fall further to be only 25 per cent of 2007 estimated volume.

"Government must surely be unaware of such consequences that would deal a fatal blow of the hopes of New Zealanders looking to progressively update their vehicles with cleaner, greener models."

Andy Cuming said that he anticipated that MTA would be having continued close discussions with government officials with these matters that industry analysis has brought to light.

"We all share the same objectives of modernizing New Zealand's vehicle fleet.

"Where we differ is in the practical reality of how this can happen.

"We say that political slogans will not achieve the aims. Rather our targets require a comprehensive package of practical policies involving not only the point of importation, but also controls in service during a vehicle's life, and incentives to promote the maximum scrappage of older vehicles.

"We wish to be talking these issues fully with Government as they determine their plans on this vital issue." he said.

ENDS

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