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Home / New Zealand

How many Kiwis have cashed in on Government's clean-car discount scheme

Aaron Dahmen
By Aaron Dahmen
Chief Political Reporter - Newstalk ZB·NZ Herald·
21 Aug, 2022 05:00 PM3 mins to read

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A fossil fuel-free cherry orchard at Mt Pisa, has taken delivery of an electric tractor. Video / Tracie Barrett

The Government's lauding the success of its clean-car discount scheme, with close to 20,000 rebates given the green light in the last four months.

But the Opposition has scoffed at the numbers, claiming just a fraction of the rebate applications approved were for full EV vehicles.

Newstalk ZB can reveal almost 20,000 rebate applications have been granted since the scheme was expanded in April this year.

The policy is designed to encourage people to buy cleaner cars, offering up to $8625 off the price of an electric or low-emissions car.

These discounts are paid for by fees of up to $5175 on less efficient vehicles.

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Transport Minister Michael Wood said the programme had "already exceeded expectations."

He told ZB he was happy with how things are tracking and expects to see more EVs picked up in the future.

"We're keen to see that increase as time goes on – I have every confidence it will."

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Transport Minister Michael Wood has lauded the scheme. Photo / Mark Mitchell
Transport Minister Michael Wood has lauded the scheme. Photo / Mark Mitchell

But the Opposition disagrees.

National's transport spokesman Simeon Brown said of those approved applications, only about 2,000, or 10 per cent, are for full-battery electric vehicles.

The rest are fuel-efficient and hybrid cars.

"It's not achieving the dramatic increase in electric vehicles the Minister, and Government, said it would," Brown told ZB.

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Brown said it's effectively a "wealth transfer", and suggested the Government, including Wood, was "getting ahead" of themselves.

"The reality is he's set up a scheme that is taxing hard-working farmers or tradies, to subsidise people who can already afford expensive electric vehicles."

Almost 20,000 clean-car rebates have been approved in the last four months. Photo /NZ Herald
Almost 20,000 clean-car rebates have been approved in the last four months. Photo /NZ Herald

Wood said the scheme specifically covers both zero and low emission options.

"The bottom line is that the National Party would abolish the scheme, which means clean cars would cost New Zealanders more", he said.

Wood is set to review the policy's fees and discounts in the coming months, as millions more in rebates are going out, than what's collected in fees.

In response to written questions by National, Wood said, as of July, "under the expanded Clean Car Discount Scheme, 19,243 rebate applications have been approved and 1,980 of these have been approved for Full Battery Electric Vehicles."

"The administration cost, including establishment costs, from inception of the scheme to 30 June 2022, was $7.8m."

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Wood also revealed Waka Kotahi was forced to apologise last month, after a system maintenance error lost more than a hundred rebate applications.

"Officials contacted 163 applicants, who were affected by the system error, to apologise and request that they resubmit their applications."

National's Simeon Brown. Photo / Brett Phibbs
National's Simeon Brown. Photo / Brett Phibbs

Brown claims that's further proof the policy is "untargeted and untidy", after previous reports of cars getting charged incorrectly, due to wrong emissions or safety-rating data.

Former Associate Transport Minister, and current Green Party transport spokesperson, Julie-Anne Genter said the scheme is "better late than never".

She tried to get the policy up and running during the last term of Parliament, but was scuppered by New Zealand First.

"It's really important the scheme continues to be reviewed... and we're going to have to keep up with this for the next five to ten years", Genter said.

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Asked about National's criticism, and promise to scrap the policy if it's voted into power, Genter said the party "has no idea what they're talking about".

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