30 years on from the Bain family murders, mother of Marokopa kids releases letter from fugitive dad and Christchurch’s dismay over SailGP. Video / NZ Herald
Some on the Electric Vehicle side of the equation, including Tesla, are venting frustration at the process the Government has used, arguing it lacked transparency and only consulted a handful of groups.
Transport Minister Simeon Brown disagreed, saying he went to a range of peak bodies “which all represent importers, distributors and retailers of all types of cars including EVs”.
The local arm of Elon Musk's Tesla has attacked the Government. Photo / AP
He said the Government supports the emissions standard scheme “to ensure that New Zealand continues to receive the supply of low and zero emissions vehicles being manufactured globally”.
Brown attempted to pass urgent legislation on Budget night (and the days of urgency that followed) to repeal the Clean Car Standard, an emissions standard for vehicle importers introduced under the last government. It requires importers to balance out the importation of polluting vehicles by importing clean ones - or face a fine.
The emissions standards that underpin the scheme were included in primary legislation for each year until 2027, after which the standard would be set by Cabinet through regulations. After a couple of flip-flops in Opposition, National eventually said it backed the standard in principle in 2022 but it has consistently opposed where it was set.
Brown’s bill will keep the scheme but repeal the specific emissions standards and moved straight to a system where Cabinet would set the new standard.
Brown said the current standard would remain in place until Cabinet chose to change it, which will occur following the review. The Government is currently consulting on a change and Brown told the Herald the Government intends to pass the bill when the House next sits, which is next week.
He failed to get the legislation passed under Budget urgency after a successful Opposition filibuster effort stopped three bills being passed. Urgency meant that despite the high interest in the emissions standards, the bill would not have received submissions at select committee.
A departmental disclose statement published with the bill said that the change from setting the standards in legislation to setting them via regulations was “critical to ensure that any changes to targets can be made quickly to increase certainty for the vehicle industry”.
Brown’s bill would remove the existing emissions standards for the years 2023 to 2027, which are set in primary legislation, and replace them with the ability for Cabinet to set the new standards via regulations, meaning they would not need to go through a full legislative process.
A departmental disclosure statement also revealed that those very regulations were currently being reviewed.
Brown had said he was reviewing the standard earlier this year, but there appears to have been no effort from him or the Ministry of Transport to announce the consultation.
Indeed, large vehicle importers like Tesla only found out about the consultation when it was revealed in the departmental disclosure statement presented to the House on Budget night.
Transport Minister Simeon Brown says he went to a range of industry bodies for consultation. Photo / Sylvie Whinray
Some in the sector are frustrated that Brown directed the ministry to only consult with a handful industry bodies on the new standard and did not cast the net wider, including to bodies representing Electric Vehicle manufacturers or importers. Indeed, until Budget night, those industry players had not been told any review was currently taking place.
Communications from the Ministry of Transport said that the decision to only consult a handful of peak bodies, the Motor Industry Association (MIA) the Motor Trade Association (MTA), the Imported Motor Vehicle Industry Association (VIA) and the Automobile Association (AA) was made at Brown’s “discretion”.
Tesla’s New Zealand country director, Thom Drew, sent a submission on the changes to the ministry despite the fact that he had not been invited as part of the consultation.
In that submission he vented his disappointment Brown had only chosen to consult “handpicked allies of the current Government”.
He said the list of consulted organisations “excludes any stakeholders who advocate for sustainable transport and includes groups who have strongly campaigned against the Clean Car Standard and Clean Car Discount”.
“It is also disappointing that the minister has failed to give any public indications of the detailed plans to weaken the Clean Car Standard. Instead, stakeholders are forced to rely on rumours.
“The Clean Car Standard is having an influence in holding emissions of vehicle imports lower than they would otherwise be, and its influence will grow if the targets reduce as planned in coming years.”
Drew argued that any attempt to weaken the standard might be contrary to law, given the Government’s legislative obligations to incentivise the importation of zero and low-emissions vehicles under the act, and its obligations to meet its first emissions budget.
Brown said it was important the standard “strikes the balance between reducing transport emissions and ensuring that New Zealand’s policy settings continue to allow the automotive sector and the wider economy to grow”.
“The review will determine whether the Clean Car Importer Standard reflects international market standards and ensures the availability, affordability, and mix of vehicles needed in the New Zealand market.”
The measure, which was maintained after the Clean Car Discount for customers was dropped, sees car importers penalised for bringing high-emission vehicles into the country - but those penalties can be offset with credits earned by importing low-emission vehicles.
Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.
