Monday, 16 May 2022

Cash for clunkers an expensive failure


“The Government is rolling out failed Obama era policies that are going to cost New Zealanders during a cost of living crisis,” says ACT’s Climate Change spokesperson Simon Court.

“Cash for clunkers was trialled in the USA and it was a total disaster. It cost a fortune and effectively just subsidised expensive vehicle purchases that were likely to happen anyway.  

“It cost up to US$288 to reduce a tonne of emissions back then when carbon prices were far lower. Labour’s proposal refers to similar schemes in California where their budgeting shows US$920 per tonne of reductions.

“It’s a pointless waste of money when transport is already within the Emissions Trading Scheme. Given the New Zealand ETS price is US$48.16, you could buy 19 tonnes of emissions credits for the same cost and shred them so no one can use them for the same cost of a one tonne reduction from cash for clunkers.

“The Government wants you to accept a policy that is 19 times less efficient just because they want to be seen as doing something.

“In America the scheme also raised the price of used cars on the open market, once again Labour are subsidising vehicles for the wealthy while making it harder for poorer Kiwis to get vehicles.

“Rather than subsidising the global automobile industry during a cost of living crisis, the Government could help out Kiwis by giving them a carbon tax refund.

“The social justice wing of the Green Party should ask why the party is prepared to raise the price of cars for people on lower incomes, just so the well-off environmental wing can buy a subsidised Tesla.

“The Government needs to drop the attention-seeking climate policies that only cost Kiwis. The ETS is the most cost-effective tool we have for reducing emissions.”