Wood doubles fee to buy Ford Rangers and Toyota Hiluxes, but also slashes & removes rebates for full electric cars and new & used hybrids to save short-term cash after faster-than-forecast uptake
May 1, 2023·edited May 1, 2023Liked by Bernard Hickey
Thanks Bernard, appreciate a different an important lens that you put on issues like this, rather than other news outlets which just focus on 'UTE TAX!' or soundbites from Simeon Brown. A real shame about Suzuki Swifts being dropped out - our 2008 model is a good, fuel effecient, effecient option for us. And we don't have to spend piles of money on it. The government should remember that some people may have the money to pay for an electric car, but would rather just choose a lower cost, but still more environmentally friendly (relatively speaking) option.
Quick question, is the under 30 discount still valid? I have seven months left of my 20s, but had my payment suddenly change this past weekend to the full prices subscription. Not sure if I missed something sorry.
I'm also surprised by the announcement given the government's prior behaviour. I had thought they would be trying to avoid giving the opposition more chance to scream 'ute tax' akin to how the government is trying to quiet down the co-governance talk. Realistically most of the purchasers of brand new utes are likely to be right-leaning voters so the number of voters directly impacted for Labour won't be too high, however this will act like a lightning rod for criticism.
I had personally expected more of an adjustment versus what feels more like a restructure.
Couple of other points - still a bit disappointed that we keep hearing almost exclusively about how the clean car rebate system is bringing climate change benefits, yet each one of these new clean cars (or cleaner cars) is helping make our air that little bit more breathable (in NZ, I know). Probably would also be a good time to have the PR teams amp up the news about how we're actually burning very little coal for our power grid now to time in with all this EV charging talk.
Of course they couldn't let their only successful climate policy keep working. Head in hands. Thanks for summarizing the truth of this policy change for us rather than the weasel words the Minister provided. I wonder if it was influenced by recent work overseas that showed that PHEV's aren't especially efficient and that most hybrids use much more fuel in real world conditions than their manufacturers claim. I've had a Leaf for 5 years now and continue to love it, but with a range of 150km it has been eclipsed by newer cars that do 300-450kms. We also have a Honda Fit hybrid that I can drive from Wellington to Tauranga for $50. Our transport costs are very low. I had to sympathesize with a skint driver of an old Commodore shelling out $160 to fill their car in Rotorua. Quickly getting these old clunkers with their belching exhausts off the road and the drivers into zippy little Aquas would be a positive step ahead. Especially in provincial NZ where driving distances are greater and public transport non existent. Are we playing a game of how unpopular the govt can make itself with climate voters before the election?
May 2, 2023·edited May 2, 2023Liked by Bernard Hickey
Time to support the Greens to keep Labour honest! I use a hybrid Estima to haul equipment and large objects. There is no excuse for tradies not to use these cars. With the back seats removed, it generally holds far more than a ute (but, of course, is not as easy to drop bails in the back). They have been on the used market for years. (And mine was the same price as a 100% gas power car.)
Rebates or credits are not anything new or unique to Labour. For example, even the USA gives a $7,500 electric vehicle tax credit.
Great talk on the mantra of being "fiscally neutral" in a low-taxed low, spending nation. The climate is in crisis (as is health education, housing, etc.). Why has continuing a very low taxed, very low spending, low debt economy (that has an undeniable even larger long run cost) been seen as an untouchable subject for the last 40 years in NZ in the media?
Thanks for your essential journalism! I had a question about the IRD report on the 300 wealthy families of NZ. I've looked into it a bit and it seems that IRD's definition of economic income for these families includes unrealised capital gains. Can you confirm? If yes, then why are they doing that? We're not talking about taxing unrealised capital gains, it doesn't make any sense. What would happen if somebody pays taxes on unrealised capital gains but then ends up with a loss? Do they get tax credit?
Taxing unrealised capital gains was never on the cards, so why include it in the definition of economic income? Again, I don't understand why would any government do that - why would anybody invest if they had to pay part of their unrealised gains every year?
They’re completely irrational and keep redoing when they don’t need to to give the impression they’re doing something. None of this is stable or good in terms of planning or leadership for people. As if we all don’t have enough problems Govt keeps taking stupid decisions and also not doing anything it’s obligated to well. Another great policy killed by its own success. They’re nuts. Has a lobbyist got to them?
They could have at least sweetened this announcement with some true environmental friendly policies of pumping money into rail. But no.
Sometimes I feel they should be kicked out to the opposition benches. But then I remember that the alternative is so much worse that I reluctantly think we need to make sure we don't get that option.
Thanks Bernard. We need this successful scheme until zero emissions vehicles approach price parity with ICE vehicles before a gradual phase-out of the rebate. In the meantime we need as many new EVs as those that can afford them can put on the road to provide decent affordable used car stock. In NZ this is particularly important as we keep our cars for a long time and today’s new ICE vehicles will be generating pollutants into the 2040s.
I've been ruminating on this all day now, especially given my current car buying scenario. Here are the thoughts going through my head:
- hybrid is still the best option for me, a renter who needs an option that's not grid dependent but wants to do my bit, it's just getting more expensive and complicated instead of simpler
- seeing as I'm not opposed to paying taxes and generally think we're not generating enough tax revenue to achieve the big infrastructure (you know, EV charging stations for example) goals we have then saying goodbye to a rebate (RAV4 Hybrid) is probably doing my bit.
- I still feel a bit shortchanged and somehow like I've been told off a little, it's bloody hard to navigate these conversations without feeling like every choice has to be interrogated by myself and the neighbours
- it reminds me of a great number plate surround I thought of making for Ford Ranger (wo)man. "It's for work, I swear."
But it also has me thinking about the Tourism Infrastructure Fund opening and where the intersection of economy, climate and politics come together. This announcement with much hoorah this morning:
But as James Doolan (Fantail Advisory/Hotel Council Aotearoa) said on LinkedIn this morning:
"In the year before COVID hit, Central Government took almost $3.9 billion in GST out of tourism. It invested approximately $100 million into Tourism New Zealand (the marketing side), and does very little to spur high-quality, tourism-connected infrastructure. $14 million is not even one half of one percent of the GST that Central Government receives from tourism in an ordinary year. $14 million might build you 25 new hotel rooms if you're lucky (and the land is cheap).
If we want to attract high value tourists, we need better infrastructure that meets the expectations of visitors. #hotelcouncilaotearoa has consistently called for real solutions to the Tourism funding problem in New Zealand. The Tourism Infrastructure Fund shows how incredibly far off track we are."
Now I've read your excellent work on this I'm seeing the fiscal neutrality mantra has all sorts of monstrous cascading impacts everywhere. Not to mention that reducing emissions in the tourism sector through robust EV options for our rental fleets would kill two birds with one stone... charging infrastructure is charging infrastructure after all.
I've been living in the Maniototo for the past couple of years. Here you're odd if you are not driving a 70 series Land Cruiser or Hilux. A lot of that is because of the practicalities - most of the folk around here actually need capable 4wd vehicles to get around and do their business, winter driving, dirt road, towing capacity, farm use etc. I've got a land rover discovery 2 (from 2001, the old classic land rover diesel motor) and a Nissan Leaf. I use the leaf vastly more than the rover, because it is free to run it (solar panels). So far in 2023 I've used about 100L of diesel but put just a bit over 7000 kms on the leaf (all charged by solar). That 100L of diesel though can't be replaced by electricity. There are just no viable electric options for most people living rurally. I guess Labour don't see rural people as potential supporters so it doesn't really matter to them, but the doubling of a 'ute tax' is not going to go down well at all. I'm bracing for locals to throw eggs at my leaf as I glide silently past!
Thanks Bernard, I've been incredibly confused by the reporting from various media sources on this story all day. It was driving me nuts trying to cut through the rhetoric! This laid things out nicely for me.
Great climate journalism as always, cheers Bernard. Hope this isn't considered spam, delete if so.
On Wednesday 3 May Climate Clinic (vic uni club) are hosting a panel: "How to save the planet: Green growth vs degrowth".
Can we work out how to grow the economy while improving, rather than damaging, the environment? And if not, what do we do instead?
The panel details are as follows:
Date/time: Wednesday 3 May, 430-6pm
Location: VUW Kelburn Campus, room HMLT104
Zoom link available on the Facebook event page: https://lnkd.in/gTauUYRv
Posting here so Bernard can hopefully see it, anyone else is welcome to come along too! cheers
Thanks Bernard, appreciate a different an important lens that you put on issues like this, rather than other news outlets which just focus on 'UTE TAX!' or soundbites from Simeon Brown. A real shame about Suzuki Swifts being dropped out - our 2008 model is a good, fuel effecient, effecient option for us. And we don't have to spend piles of money on it. The government should remember that some people may have the money to pay for an electric car, but would rather just choose a lower cost, but still more environmentally friendly (relatively speaking) option.
Quick question, is the under 30 discount still valid? I have seven months left of my 20s, but had my payment suddenly change this past weekend to the full prices subscription. Not sure if I missed something sorry.
Spot on Bernard. Labour continually boggle the mind
<shakes head, furrows eyebrows>
I'm also surprised by the announcement given the government's prior behaviour. I had thought they would be trying to avoid giving the opposition more chance to scream 'ute tax' akin to how the government is trying to quiet down the co-governance talk. Realistically most of the purchasers of brand new utes are likely to be right-leaning voters so the number of voters directly impacted for Labour won't be too high, however this will act like a lightning rod for criticism.
I had personally expected more of an adjustment versus what feels more like a restructure.
Couple of other points - still a bit disappointed that we keep hearing almost exclusively about how the clean car rebate system is bringing climate change benefits, yet each one of these new clean cars (or cleaner cars) is helping make our air that little bit more breathable (in NZ, I know). Probably would also be a good time to have the PR teams amp up the news about how we're actually burning very little coal for our power grid now to time in with all this EV charging talk.
Of course they couldn't let their only successful climate policy keep working. Head in hands. Thanks for summarizing the truth of this policy change for us rather than the weasel words the Minister provided. I wonder if it was influenced by recent work overseas that showed that PHEV's aren't especially efficient and that most hybrids use much more fuel in real world conditions than their manufacturers claim. I've had a Leaf for 5 years now and continue to love it, but with a range of 150km it has been eclipsed by newer cars that do 300-450kms. We also have a Honda Fit hybrid that I can drive from Wellington to Tauranga for $50. Our transport costs are very low. I had to sympathesize with a skint driver of an old Commodore shelling out $160 to fill their car in Rotorua. Quickly getting these old clunkers with their belching exhausts off the road and the drivers into zippy little Aquas would be a positive step ahead. Especially in provincial NZ where driving distances are greater and public transport non existent. Are we playing a game of how unpopular the govt can make itself with climate voters before the election?
Time to support the Greens to keep Labour honest! I use a hybrid Estima to haul equipment and large objects. There is no excuse for tradies not to use these cars. With the back seats removed, it generally holds far more than a ute (but, of course, is not as easy to drop bails in the back). They have been on the used market for years. (And mine was the same price as a 100% gas power car.)
Rebates or credits are not anything new or unique to Labour. For example, even the USA gives a $7,500 electric vehicle tax credit.
Great talk on the mantra of being "fiscally neutral" in a low-taxed low, spending nation. The climate is in crisis (as is health education, housing, etc.). Why has continuing a very low taxed, very low spending, low debt economy (that has an undeniable even larger long run cost) been seen as an untouchable subject for the last 40 years in NZ in the media?
And Labour still avoiding the most responsible action - subsidies for electric bikes.
Kia Ora Bernard,
Thanks for your essential journalism! I had a question about the IRD report on the 300 wealthy families of NZ. I've looked into it a bit and it seems that IRD's definition of economic income for these families includes unrealised capital gains. Can you confirm? If yes, then why are they doing that? We're not talking about taxing unrealised capital gains, it doesn't make any sense. What would happen if somebody pays taxes on unrealised capital gains but then ends up with a loss? Do they get tax credit?
Taxing unrealised capital gains was never on the cards, so why include it in the definition of economic income? Again, I don't understand why would any government do that - why would anybody invest if they had to pay part of their unrealised gains every year?
They’re completely irrational and keep redoing when they don’t need to to give the impression they’re doing something. None of this is stable or good in terms of planning or leadership for people. As if we all don’t have enough problems Govt keeps taking stupid decisions and also not doing anything it’s obligated to well. Another great policy killed by its own success. They’re nuts. Has a lobbyist got to them?
They could have at least sweetened this announcement with some true environmental friendly policies of pumping money into rail. But no.
Sometimes I feel they should be kicked out to the opposition benches. But then I remember that the alternative is so much worse that I reluctantly think we need to make sure we don't get that option.
Another master class in shortermisim from a NZ Govt, excellent work unpicking the gnarly details as always Bernard
Some relevant/interesting reading for those keen on EV's https://www.iea.org/reports/global-ev-outlook-2023
Stand out for me was the fact we are dead last in the countries captured for provision of EV chargers
Thanks Bernard. We need this successful scheme until zero emissions vehicles approach price parity with ICE vehicles before a gradual phase-out of the rebate. In the meantime we need as many new EVs as those that can afford them can put on the road to provide decent affordable used car stock. In NZ this is particularly important as we keep our cars for a long time and today’s new ICE vehicles will be generating pollutants into the 2040s.
I've been ruminating on this all day now, especially given my current car buying scenario. Here are the thoughts going through my head:
- hybrid is still the best option for me, a renter who needs an option that's not grid dependent but wants to do my bit, it's just getting more expensive and complicated instead of simpler
- seeing as I'm not opposed to paying taxes and generally think we're not generating enough tax revenue to achieve the big infrastructure (you know, EV charging stations for example) goals we have then saying goodbye to a rebate (RAV4 Hybrid) is probably doing my bit.
- I still feel a bit shortchanged and somehow like I've been told off a little, it's bloody hard to navigate these conversations without feeling like every choice has to be interrogated by myself and the neighbours
- it reminds me of a great number plate surround I thought of making for Ford Ranger (wo)man. "It's for work, I swear."
But it also has me thinking about the Tourism Infrastructure Fund opening and where the intersection of economy, climate and politics come together. This announcement with much hoorah this morning:
https://www.beehive.govt.nz/release/eyes-recovery-tourism-infrastructure-fund-opens
But as James Doolan (Fantail Advisory/Hotel Council Aotearoa) said on LinkedIn this morning:
"In the year before COVID hit, Central Government took almost $3.9 billion in GST out of tourism. It invested approximately $100 million into Tourism New Zealand (the marketing side), and does very little to spur high-quality, tourism-connected infrastructure. $14 million is not even one half of one percent of the GST that Central Government receives from tourism in an ordinary year. $14 million might build you 25 new hotel rooms if you're lucky (and the land is cheap).
If we want to attract high value tourists, we need better infrastructure that meets the expectations of visitors. #hotelcouncilaotearoa has consistently called for real solutions to the Tourism funding problem in New Zealand. The Tourism Infrastructure Fund shows how incredibly far off track we are."
Now I've read your excellent work on this I'm seeing the fiscal neutrality mantra has all sorts of monstrous cascading impacts everywhere. Not to mention that reducing emissions in the tourism sector through robust EV options for our rental fleets would kill two birds with one stone... charging infrastructure is charging infrastructure after all.
I've been living in the Maniototo for the past couple of years. Here you're odd if you are not driving a 70 series Land Cruiser or Hilux. A lot of that is because of the practicalities - most of the folk around here actually need capable 4wd vehicles to get around and do their business, winter driving, dirt road, towing capacity, farm use etc. I've got a land rover discovery 2 (from 2001, the old classic land rover diesel motor) and a Nissan Leaf. I use the leaf vastly more than the rover, because it is free to run it (solar panels). So far in 2023 I've used about 100L of diesel but put just a bit over 7000 kms on the leaf (all charged by solar). That 100L of diesel though can't be replaced by electricity. There are just no viable electric options for most people living rurally. I guess Labour don't see rural people as potential supporters so it doesn't really matter to them, but the doubling of a 'ute tax' is not going to go down well at all. I'm bracing for locals to throw eggs at my leaf as I glide silently past!
Thanks Bernard, I've been incredibly confused by the reporting from various media sources on this story all day. It was driving me nuts trying to cut through the rhetoric! This laid things out nicely for me.