Feebate scheme to be reviewed

Government to look into how clean car discount is operating rebates outstripping charges.

The Ministry of Transport (MoT) will be reviewing the feebate scheme later this year, and it will include looking into the shortfall between charges and rebates.

Autofile Online reported on October 26 that the policy, which was fully implemented on April 1, was designed to be revenue neutral. But only $62.8 million has been collected in charges imposed on heavy emitters while just over $95m has been paid out in subsidies to leave a shortfall of $32.2m.

“As a part of the implementation of the clean car discount, a regular review was planned to ensure revenue from the fees coming in matched the cost of rebates going out,” says a spokesman for MoT.

“These reviews are planned to happen every one to two years throughout the life of the discount. The review will get under way later this year and the information will inform any potential changes that may need to be made.”

The MoT told Autofile that the policy is working “extremely well” with the rate of uptake of electric vehicles (EVs) and hybrids being much higher than anticipated. “We are very pleased that more people are getting into cleaner cars.”

Specifics on when the review slated for 2022 will be completed have yet to be announced.

Michael Wood, Minister of Transport, told delegates at the Motor Trade Association’s national conference on October 14 that the feebate scheme is intended to make Kiwis think harder about their choices and encourage them to move to more environmentally friendly options.

“This is working,” Wood, pictured, said at the event. “EV purchase rates have risen and, in the used-import market, hybrid sales have grown to be roughly neck-and-neck with petrol-car sales for the first time ever.

“The benefits of having more EVs and less high-emissions cars on our roads are huge. We will cut our emissions, helping to reduce environmental damage that vehicles cause.”