Government reveals to industry group it is investigating how to rid our roads more quickly of low-rated vehicles.
The Minister of Transport has told an industry conference he is keen to speed up the removal of vehicles with one and two-star safety ratings from the fleet in an effort to reduce the number of fatalities and injuries on our roads.
Michael Wood, pictured, gave a speech at the opening of the Motor Trade Association (MTA) national conference in Auckland on October 14 and spoke about the government’s vision for a “sustainable and technology-driven transport sector”.
He said work on safer vehicles was progressing with raising standards at entry considered one of the most important levers for managing our vehicle fleet.
The minister also acknowledged looking at imports was only part of the solution to improving safety and said the Ministry of Transport was also keen to tackle those already in the fleet.
“We have identified several modern safety technologies that are expected to have significant safety benefits for New Zealand roads, and we are examining options to increase the uptake of these technologies in our fleet,” he told the conference.
“Because New Zealand is a small market with limited influence over manufacturers, we need to be keeping up with international standards to ensure our new vehicles are the highest quality we can afford.
“However, the ministry knows that looking at the vehicles coming in is only part of the issue. If we really want to see enduring safety improvements, we also need to investigate options to accelerate the exit of one and two-star safety-rated vehicles from the existing New Zealand fleet.
“We will also work to improve current warrant of fitness and certificate of fitness testing procedures, so that we can be assured vehicles currently on the road are and remain roadworthy.”
Wood also spoke to MTA members about the government’s clean car programme, immigration, skills shortages and climate change.
Clean cars
He said: “Urgent action is required to address the climate crisis and shift our fleet from being one of the oldest and dirtiest in the world.
Wood added the clean car discount scheme was introduced by the government to encourage demand for low-emitting vehicles. He noted this had led to a surge in sales of such vehicles with “more models and makes of electric vehicles [EVs] entering the country”.
“Record numbers of hybrids and EVs are now being bought in New Zealand due to the rebates provided.
“The discount is proving an overwhelming success and is turning New Zealand into a global leader in the uptake of zero emissions vehicles.
“Over $33 million has been paid in rebates, and over $24 million has been collected in fees.”
The discount was introduced solely for battery electric vehicles and plug-in hybrids in July 2021. It expanded into a feebate scheme in April this year to cover all newly registered light vehicles and to make it more expensive to buy high-emissions vehicles.
“This is intended to make people think harder about their choices and encourage people to move to a more environmentally friendly option,” said Wood.
“This is working. EV purchase rates have risen, and, in the used import market, hybrid sales have grown to be roughly neck-and-neck with petrol car sales for the first time ever.
“The benefits of having more EVs and less high-emissions cars on our roads are huge. We will cut our emissions, helping to reduce the environmental damage that vehicles cause.
“We will be in safer cars that save money on fuel and vehicle maintenance. We will reduce our reliance on fossil fuels and the global events that can impact our supply.”
Wood also mentioned the looming clean vehicle standard to “encourage a cleaner supply” of vehicles but did not address its implementation date.
The standard is slated to be introduced from January 1, 2023, but industry is still waiting on government to finalise details of the regulations. The MTA has long called on the government to delay rolling out of the new rules until at least April next year.
The minister told MTA members the carbon dioxide (CO2) emissions standard on vehicle imports will be among the strongest target currently regulated anywhere in the world by 2027.
“To help support consumers to make the right decision, we’ve introduced mandatory vehicle emissions and energy economy labels on new and used vehicles.
“There’s more going on and there’s more to do. But with the progress we’re making, we will no longer be a dumping ground for the vehicles the rest of the world don’t want any more.”
Immigration and staffing shortages
Wood acknowledged the automotive sector’s concern about the future of its workforce: “The skills required are changing as vehicles change, the workforce is changing and retiring in greater numbers, and many of you have been telling me you are struggling to attract and retain sufficiently skilled staff.
“These kinds of challenges are being seen across skill levels and sectors. The New Zealand labour market remains tight with elevated demand for labour, particularly because of Covid-19.
“I expect pressures to ease as the country continues its recovery from Covid-19 and its flow-on effects. As a nation, we did a remarkable job of keeping our people as safe as we could in the pandemic, and I am confident we can bounce back from the setbacks.”
Wood says migrants have and always will play an important role in New Zealand’s workforce and society as a whole, but immigration alone cannot solve labour shortages.
“Many employers and sectors made great progress to hire, train and upskill more New Zealanders while the borders were closed and they found other ways of doing things, including investing in productivity and capital.
“There is an opportunity to discuss workforce when considering vehicle safety matters. I hope that the MTA will continue to raise workforce concerns with my officials, so that we can look for a solution that works for the short term and long term equally well.”
Climate change
He described climate change as one of the biggest threats New Zealand faces and said it was a priority for the government because it’s a risk “to our economy, our environment and our everyday lives”.
“Transport is our second-largest source of greenhouse gas emissions and action is needed now to start reversing the trend in this sector, which has seen bigger emissions rises than any other part of our economy,” he said.
“But there are a lot of opportunities to tackle this – the longer we delay further action, the more difficult and expensive it gets.
“The Emissions Reduction Plan [ERP] released this year, contains targets and actions to achieve a 41 per cent reduction in transport emissions by 2035.
“We will work together with transport agencies, local government, iwi/Māori and communities across Aotearoa to achieve this.”
Wood noted transport was one of our largest sources of greenhouse gas emissions and he suggested decarbonising our transport system rapidly would require big changes to the way we travel and move freight.
He reiterated the four transport targets in the ERP to support the government’s emissions reduction goal include reducing the total kilometres travelled by the light fleet by 20 per cent by 2035.
The government also wants to increase zero-emissions vehicles to 30 per cent of the light fleet by 2035, cut emissions from freight transport by 35 per cent by the same date and reduce the emissions intensity of transport fuel by 10 per cent.
Safety
Wood said road safety was another priority for the government, which believes no one deserves to die or be seriously injured on our roads.
On average, one person is killed every day on New Zealand roads, and another six are seriously injured. The government’s Road to Zero safety strategy sets an initial target of achieving a 40 per cent reduction in deaths and serious injuries by 2030.
“Achieving this target requires a concerted effort right across the country and communities to support a sustained reduction in trauma on our roads,” he said.
“Government has committed to spend around $2.7 billion to support the Road to Zero work, between 2021 and 2024.Road to Zero is not about any single initiative but about how we develop a safe system that includes safe vehicles, safe speeds, safe road use and safe roads.”
Wood highlighted that officials were working through a package of proposals around making sure the fines and penalties applied to some motoring offences were aligned with the risk those behaviours pose to road users. The government was also investing in road safety improvements across the country.
Keyword: Minister targets car safety