The Motor Industry Association’s withdrawal of support for Labour’s Clean Vehicle Bill is yet more reason for Transport Minister Michael Wood to ditch his car tax plan, National’s Transport spokesperson David Bennett says.

“Today, the Motor Industry Association has withdrawn support for Labour’s car standard, stating Labour’s bill will push up car prices by 15-20 per cent.

“Michael Wood’s Clean Vehicle Bill puts in place a new car emissions standard that pings importers who don’t import enough low-emissions vehicle with hefty fines.

“The MIA has told Minister Wood the same thing transport officials told him in December last year – his proposed targets and fines are far too strict and will do nothing more than act as another car tax.

“Transport officials also told Minister Wood that requiring importers to achieve the target in his car standard by 2025 was ‘extremely difficult for them to do over four years’, and, ‘as a result, a 2025 timeframe would disrupt vehicle supply in the short term, push up vehicle prices, and slow the turnover of the existing fleet’.

“Slowing down the turnover of the fleet will mean Kiwis driver older, less safe and less efficient cars.

“Now the MIA has told Minister Wood that the standard, alongside the proposed car tax, will see car prices in New Zealand pushed up 15-20 per cent.

“That’s an $8000 tax hike on a typical new family car.

“Labour needs to drop this bill urgently. Now is not the time to be stinging Kiwis with new taxes.”

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