7. JEANETTE FITZSIMONS (Green) Link to this
to the Minister of Transport
Will he reconsider his decision to stop work on a vehicle fuel economy standard for New Zealand, in light of the recent US Government announcement that all new vehicles will have to meet 156 grams of carbon dioxide per kilometre by 2016?
Hon STEVEN JOYCE (Minister of Transport) Link to this
No. I think that adding up to $1,500 to the price of a vehicle is counter-productive, when the average fuel economy of vehicles entering our fleet is already steadily improving and is currently much better than that of vehicles in the United States right now. That is all happening over time, without any legislated fuel economy standards.
Jeanette Fitzsimons Link to this
Is he aware that even at US petrol prices, which are much lower than ours, the Environmental Protection Agency estimates that its new standard will save motorists US$3,000 in fuel costs over the life of a vehicle, after paying back the increased purchase price, and why does he not think New Zealand motorists should benefit from similar savings?
There are a couple of reasons for that. Firstly, New Zealand fuel economy standards are already about 23 percent better than current US standards, and, secondly, New Zealand fuel economy standards are on track to become more efficient than US standards by 2016 without any intervention whatsoever.
Hon Darren Hughes Link to this
Is his decision in respect of fuel economy standards more in line with the policies of George W Bush or Barack Obama?
Here we go again. I point out to the member that New Zealand’s fuel economy is already considerably better than that in the US market, so I would say it is definitely more in line with Obama’s policies, although I would not want to make that comparison.
Jeanette Fitzsimons Link to this
Does he not think that if the US, which is the home of large gas-guzzlers, can achieve an average of 156 grams a kilometre, New Zealand could do somewhat better than its current 210 grams, which is actually rising with every new import?
The current New Zealand number is less than 200 grams, I understand. But more important, the US number by 2016 translates into a European Union standard of around 175 grams. I understand there is a difference between the way that the European Union and the US measure it. On current trends, New Zealand will be below that by 2016, once again without the Government having to intervene and legislate in a heavy-handed manner, as the Green Party would suggest that we do.
Jeanette Fitzsimons Link to this
Will New Zealand not continue to become an international dumping-ground for other countries’ dirty, inefficient, second-hand cars as the US, the European Union, and even China set more stringent fuel economy standards for their vehicles?
Jeanette Fitzsimons Link to this
What other ideas does the Minister have to reduce carbon dioxide emissions from transport to meet even this Government’s pathetic 2020 target, if improving fuel economy in vehicles is not one of them?
New Zealand’s fuel economy in vehicles is improving. We also have the road-user charge exemption for electric vehicles, we have the New Zealand producers of bio-diesel eligible for a subsidy, and we have bio-ethanol subsidies. I just do not understand the member’s rationale. New vehicles now have a better fuel economy than older, similar-sized vehicles. If we increase the cost of new vehicles, we will lower further the sales of new vehicles and increase the age of the fleet. That will damage the cause of improving fuel economy standards. I just do not understand where the member is coming from.