Election 2020: National Leader Judith Collins’ Electric Car Policy – No Fringe Taxes, You Can Use Bus Lanes

The National Party is reverting to a controversial proposal to allow electric vehicles to run on buses and high-occupancy lanes to encourage acceptance.

The scheme, which would be implemented immediately on state roads, is included in National’s plan to get 80,000 electric vehicles on New Zealand’s roads by 2023, four times current levels.

National says it will achieve this goal by exempting EVs from fringe tax until 2025 to encourage fleet absorption, exempting them from road user charges until at least 2023, and setting a three-year target of one third of the government’s light vehicle fleets are electric. .

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In 2016, when National was in government, it passed legislation that set the framework for electric vehicles to use bus lanes, but let local governments adopt it.

At the time, Transport Minister Simon Bridges did not consult with councils on the plan and ignored advice from officials that they probably wouldn’t be interested because it would slow down public transport.

Auckland Transport then voted against allowing electric vehicles on bus lanes, in favor of supporting a test to allow them on T2 and T3 lanes.

A one-year trial later found that the scheme did not encourage people to buy electric cars with owners, but instead cited environmental concerns, lower running costs, and the perception of being an early adopter as strongest motivators.

This time, National would introduce a new plate so that electric cars could use the lanes and implement the plan immediately on state highways and work with councils to implement it in cities.

“Our ambitious and comprehensive plan will encourage the purchase of electric vehicles, create a thriving market for second-hand electric vehicles, support sustainable transportation infrastructure and reduce carbon emissions,” said national leader Judith Collins, making the announcement in an electric vehicle dealer in Takapuna, Auckland. Urban electric vehicles.

“This ambitious plan will make electric vehicles cheaper and easier to buy without unfairly taxing kiwis.”

Details of the “electric vehicle plan” include:

• Aim for one third of the government’s light vehicle fleet to be electric by 2023.

• Exempt electric vehicles from fringe benefits tax (a type of tax that can be applied to benefits provided to employees other than their salary or wages, such as motor vehicles available for private use) until 2025, and extend benefits road user fee waivers until at least 2023.

The estimated cost is $ 93 million over four years, including $ 55 million in lower revenue for exempting EVs from fringe benefits tax and $ 38 million to electrify the government fleet.

Light electric vehicles are currently exempt from highway user charges until June 30, 2021, and heavy electric vehicles are exempt until December 31, 2025, saving owners $ 600 a year on average.

Collins, who was joined by National Transportation Spokesperson Chris Bishop and East Coast Bays MP and Associate Party Spokesperson for the Environment Erica Stanford, said monthly electric vehicle registrations reached about 500 vehicles per month in National, and they hadn’t grown in the last three. years.

About a third of new EV purchases are for business fleets, and the fringe benefits tax exemption and the ability to use bus and busy lanes would incentivize businesses to buy more EVs, National said, and it would be attractive to people who have to travel frequently. the city.

The Labor-led government received advice on exempting electric vehicles from the fringe tax, but the Treasury noted that such an exemption would not encourage purchases of electric vehicles by individuals or businesses that primarily purchase vehicles for commercial use.

Electric vehicles currently make up about 0.6 percent of New Zealand’s light passenger fleet.

The Labor-led government appeared willing to introduce a “tariff reduction” policy that would have subsidized the cost of cleaner vehicles by making polluting vehicles, such as SUVs, cost more. Another clean car discount was designed to encourage importers to bring in cars with better emission standards.

The proposal was blocked by New Zealand First.

Green Party MP and Deputy Transport Minister Julie Anne Genter released a discussion paper on the feebate scheme in July last year, but New Zealand First blocked it, even though the Greens had accepted that the vehicles agricultural would be exempt from the tariffs if there was no reasonable electricity. alternative.

National had labeled the policy a “car tax.”

Transportation policy

National has already announced a major transportation package: In July, Collins promised that his government, if elected, would fix Auckland’s congestion crisis and transform infrastructure on the Upper North Island, spending $ 31 billion over 10 years.

More than half of the $ 31 billion, about $ 17 billion, would be spent on projects in the upper North Island, including Auckland, Hamilton, Tauranga and Whangārei.

Major transportation projects already promised by National include:

• A four-lane highway from Whangārei to Tauranga (including tunnels under the Brynderwyn and Kaimai mountain ranges) to be completed in 2040.

• An additional tunnel crossing of the Port of Auckland for road, rail and public transport (works to start in 2028).

• A rapid transit bus from Onehunga to Auckland CBD.

• A rail link circuit connecting Auckland Airport with Puhinui and Onehunga.

• Improved Auckland ferry services.

• Construction of the northwest bus rapid transit corridor.

In the Wellington region, the transportation package includes the acceleration of a second Mt Victoria Tunnel and the construction of a second Terrace Tunnel, and a new highway linking Seaview to State Highway 1 and express buses or trackless trains to the airport.

The money to pay for the $ 31 billion projects will come from more loans, future budgets and the Covid-19 recovery fund, National says.

A national government would allow the New Zealand Transportation Agency to borrow more money than it currently asks for.