Incentives and penalties for fuel use in cars

The Government is not ruling out cash grants for people who buy fuel-efficient vehicles and penalties for those buying gas guzzlers.

The Business Council for Sustainable Development said yesterday a poll showed 61 per cent of people would support government grants of $3000 for people registering low-emission fuel-efficient cars for the first time.

It said 55 per cent supported such grants, coupled with $2000 cash penalties for people registering cars guzzling more than 14 litres of petrol per 100 kilometres.

Council chief executive Peter Neilson said New Zealand's car fleet was one of the oldest and dirtiest in the developed world and was a major contributor to New Zealand's greenhouse gas emissions.

He said if the idea were converted into policy it would massively reduce New Zealand's liability under the Kyoto Protocol, which required New Zealand to cut its carbon emissions.

National Radio today reported that Energy Minister Pete Hodgson said the Government would take a look at the idea as part of its review of climate change policy.

The fact that people supported the ideas of incentives and penalties was encouraging, he said.

- NZPA