Levelling the playing field for electric vehicles in New Zealand

Mr John Key spoke of levelling the playing field for electric vehicles by exempting them from Road User Charges (RUC) during his Environment Policy Launch, on 6 September 2008.

Mr Key and his Cabinet must be congratulated for delivering one part of the promise i.e. for vehicles under 3.5 tonnes. May we request a critical evaluation and leadership to deliver on the second part of the promise - RUC exemption for heavier vehicles?

News from the United States of America and the United Kingom they have created specific funds to bridge the capital cost difference between conventional diesel vehicles and low or zero emission vehicles. Of particular environmental importance are passenger service vehicles in urban transit as well as neighbourhood delivery vehicles.

Road user charge waiver for heavy vehicles will among others benefit the Manawatu Tram Trust. We are in the process of retrofitting a diesel vehicle that will be operated as trackless battery powered tram for passenger service in Manawatu.

If New Zealand were to launch a fund similar to those in the United Kingdom and USA, retrofitting vehicles to electric traction would become the preferred option of many operators.

While resourcing such a fund on a national scale that bridges the price gap for electric vehicle uptake in the transport sector, it may well be worth considering a pilot region to trial such concepts. With its environmental and innovation pedigree Manawatu would make an ideal pilot zone.