Govt spends more than $27 million on low emission subsidies for heavy vehicles

The Ministers for Climate Change and Energy have announced the launch of the Low Emissions Heavy Vehicle Fund.  This fund allocates $27.7 million dollars towards a 25% subsidy towards the purchase price of low emission heavy vehicles.

Taxpayers’ Union Communications Officer, Alex Emes, said:

“This announcement is another example of reckless government spending.  If the government truly wants to reach net zero, a simple cost benefit analysis would tell them that putting this amount of taxpayer dollars towards subsidising vehicles is a complete waste of money.

“All this does is hand over hard-earned taxpayer dollars to billion dollar car companies.  If small businesses understand one thing it’s how to balance the books.  And common sense is to not throw away money on expensive vehicles – an investment that this government apparently thinks is sound.

“Under New Zealand’s declining emissions cap, all these subsidies do is free up emission allowances for other businesses to take advantage of, and so there is no net reduction in emissions overall. This is not an efficient use of taxpayers’ funds.

“Kiwis expect to get bang for buck for their tax dollars.  If Climate Change Minister Watts truly understood just how little effect this will have on carbon emissions, he would cut this fund immediately.”