14 Dec 2023

Parliament repeals Clean Car Discount

6:31 pm on 14 December 2023
National MP Simeon Brown

Transport Minister Simeon Brown Photo: RNZ / Angus Dreaver

Parliament has repealed the Clean Car Discount, labelled by National the "ute tax", as it continues to sit in urgency in the lead-up to the Christmas break.

The law was brought in as a way of encouraging the uptake of lower-emissions vehicles like electrics and hybrids, by reducing their cost by up to $7015 when imported from overseas.

This was paid for by adding additional costs of up to $6900 on high-emissions vehicle imports, such as utility vehicles.

The National and ACT parties had campaigned on repealing the programme, saying it was unfair on some groups like farmers who had no viable low-emission alternative to utes, and was therefore adding to their costs.

The Land Transport (Clean Vehicle Discount Scheme Repeal) Amendment Bill was voted through its third reading with support from National, ACT, and NZ First. Labour, the Greens and Te Pāti Māori were opposed.

The scheme is now due to end from 31 December, after receiving Royal Assent.

It was the third piece of legislation passed by the new government, all under urgency this week, starting with the repeals of the Reserve Bank's dual mandate and Fair Pay Agreements.

Parliament now rises until next week, when it will continue sitting under urgency to return to the Resource Management Act instead of Labour's replacements, bring back 90-day trials for all businesses, and confirm new regulations and orders in council.

This will be accompanied by more maiden speeches from new MPs and the adjournment debate.