Wednesday, 30 June 2021 08:55

New car regs punish farmers

Written by  David Anderson
The new ute tax regime will add $2,900 to the cost of a new Ford Ranger from January next year. The new ute tax regime will add $2,900 to the cost of a new Ford Ranger from January next year.

Farmers are again the hapless targets of new government regulations - this time to reduce the country's car fleet carbon emissions.

Earlier this month, Transport Minister Michael Wood announced the Clean Car Discount scheme, which would see people buying new electric vehicles (EVs) eligible for a discount of up to $8,625. However, those purchasing emitting vehicles - such as petrol and diesel utes - will pay a tax on these. The fees go as high as $5,175 for a new import $2,875 for a used import.

Farmers and rural contractors, who need these larger, more powerful vehicles, will be hardest hit by the scheme and the new tax. Many will have no other choice but to pay the fee to buy the vehicles - mainly utes - they need.

Despite claims by both Wood and PM Jacinda Ardern that alternatives will be available, the Motor Trade Association (MTA) believes it will be at least another five years before electric utes are accessible. Even then, these are unlikely to be of a standard high enough for some of the tough work required on farms.

Ardern also claimed that Toyota will soon be bringing a new EV ute into the NZ market. However, her claim has been labelled as misinformation by the car manufacturer.

"I'd like to reiterate that we do not have any plans for a battery electric Hilux in our line-up in the next 18-24 months," said Toyota New Zealand's chief executive officer, Neeraj Lala. "It is irresponsible to suggest that customers stop buying non-electric vehicles immediately until there is an electric option available."

He added that the range and volumes of EVs needed to meet demand is simply not available.

The Motor Industry Association (MIA) has also poured water on such claims.l Chief executive David Crawford says that "speculation by ministers of when models are coming to the market is unhelpful and potentially misleading."

Now the Government is being urged to introduce a variable regime on higher emitting vehicles so farmers and rural contractors - who have no current choice but to run them - are not penalised.

Rural Contractors NZ chief executive Andrew Olsen says his members now face $3,000 penalties for buying a new ute. He says while his organisation supports reducing emissions from vehicles, the new charges for buying bigger new diesel and petrol cars should be applied to those who have other options.

"We have no problem if those who live in urban areas and have altenatives are charged a premium if they still want to buy a 'Fendalton tractor' or a 'Remuera Rover'," Olsen explains. "That does not apply to our members who live rurally and often remotely."

He adds that there are currently there are no vehicles that meet their needs, no EV charging stations on backcountry roads nor public transport.

Finance Minister Grant Robertson has ruled out an exemption for farmers and others on the fee for petrol and diesel vehicles. Last week at Fieldays, Ardern reaffirmed that there would not be any exemptions for farmers, claiming it would be "too hard".

National's agriculture spokesman David Bennett has labelled the new policy a tax on farmers.

"Farmers do not drive utes as a fashion statement; we need these vehicles. They are a practical necessity on the farm."

He says National will repeal Labour's car tax and reverse the punishment of hardworking farmers.

Meanwhile, Olsen says the only bigger size four-wheel drive he's aware of available as an electric or plug-in hyprid is the Mitsubishi Outlander.

"It's a nice car, but it's a bit 'soccer mum' for a rural contractor."

He says contractors need vehicles they can load-up with equipment and take into areas requiring serious four-wheel capacity like steep hillsides or still flood sodden farms.

More like this

Sponsor's ute blitzes endurance record

Recently released in New Zealand and a sponsor of New Zealand Fieldays, the JAC (“Jack”) T9’s positioning as a reliable workhorse for Kiwi tradies has been reinforced by the remarkable achievement overseas that shattered a 24-hour Endurance Record for commercial vehicles.

Ford's new addition

Ford New Zealand has announced the addition of the Everest Tremor as a rugged and capable expansion of its hugely popular SUV family, said to offer improved offroad capabilities, without compromising on towing capacity or on-road comfort.

LDC looking to raise its game

While the LDV brand has been available in New Zealand for a number of years, it’s typically been recognised as a second tier offering. That has started to change after distribution passed to the Inchcape Group in 2023, who are on a trajectory to improve that public perspective, and in due course, push sales upwards.

Featured

LIC Space folds for good

Farmer co-operative LIC has closed its satellite-backed pasture measurement platform – Space.

Editorial: Time for common sense

OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).

National

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Are they serious?

OPINION: The Greens aren’t serious people when it comes to the economy, so let’s not spend too much on their…

A hurry up!

OPINION: PM Chris Luxon is getting pinged lately for rolling out the old 'we're still a new government' line when…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter