Wednesday, 23 June 2021 09:55

Govt's electric car policy set to hit farmers in the pocket

Written by  Mark Daniel
Farmers and tradies needing larger vehicles for their day-to-day work will be hit the hardest. Farmers and tradies needing larger vehicles for their day-to-day work will be hit the hardest.

At a time when New Zealand's rural sector is already carrying a large can to keep the country's finances in the black, it looks like that can will get a little heavier.

The Government's recently released Clean Car Discount Package is designed to encourage the uptake of electric vehicles with cash rebates of up to $8,625 for those purchasing "pure" electric vehicles (EV).

While the ida of everyone driving around in EVs is laudable, from January 2022 the sting in the tail will be a penalty of around $3,000 on the purchase price of utes, which will be used to subsidise the "go green" initiative.

This means that farmers, rural supply companies and an army of tradies who need these larger vehicles for their day-to-day work, will be subsidising urban dwellers to help them buy a low emission runabout or town car.

The penalty may increase even further in January 2023 when the Government's Clean Car Standards come into play - aimed at penalising manufacturers of vehicles with higher CO₂ emissions, meaning a further hike in purchase prices.

David Crawford, chief executive of the Motor Industry Association, says the problem for users of such vehicles is there are currently no alternatives available. He says while there is talk of electric utes being available by 2030, even hybrid utes are not likely before the middle of the decade.

In the same vein, DairyNZ chief executive Tim Mackle is suggesting that because of the fact that vehicles of this type are essential for farmers and rural professionals, rather than a "nice to have" purchase, they should be exempt from the scheme until other greener options are readily available.

Some industry observers are suggesting that the financial implications of the government initiative might result in some users holding on to and running older, dirtier vehicles, while trade-in prices for these vehicles is likely to take a hit.

More like this

Out of touch

OPINION: Last week's announcement by the Government to remove a decades-long ban on genetically engineered crops was generally well-received by farming and science communities.

Give it back!

OPINION: Most of the country's wage slaves will welcome the extra coin left in their wallets thanks to National's tax cuts.

Featured

Editorial: Right call

OPINION: Public pressure has led to Canterbury Police rightly rolling back its proposed restructure that would have seen several rural police stations closed in favour of centralised hubs.

National

Machinery & Products

New McHale terra drive axle option

Well-known for its Fusion baler wrapper combination, Irish manufacturer McHale has launched an interesting option at the recent Irish Ploughing…

Amazone unveils flagship spreader

With the price of fertiliser still significantly higher than 2024, there is an increased onus on ensuring its spread accurately at…

» Latest Print Issues Online

Milking It

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Follow the police beat

OPINION: Politicians and Wellington bureaucrats should take a leaf out of the book of Canterbury District Police Commander Superintendent Tony Hill.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter