Auchinvole Chris: Road User Charges Amendment Bill — First Reading 
Auchinvole Chris: Road User Charges Amendment Bill — First Reading 
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CHRIS AUCHINVOLE (National—West Coast - Tasman) 
: 
 I am pleased to follow the erudite speaker who has just completed her speech Rahui Katene. I will be expressing the same sorts of sentiments as she did. I am pleased to have the opportunity to speak on the Road User Charges Amendment Bill sponsored by my esteemed colleague the Hon Steven Joyce who is having such an impact in his portfolio. 
The proposed exemption is transitional and limited in scope. It is not intended to set a precedent for road-user charge exemptions. This bill delivers on National’s election promise to exempt light electric motor vehicles from road-user charges and it is a pleasure to see evidence of the fact that this is a Government that delivers on its promises. The reason we want to exempt light motor vehicles from these costs—and indeed it is meritorious to do so—is that we want to encourage the uptake of light electric motor vehicles. 
We see private vehicles continuing to be the most significant mode of transportation for most New Zealanders. We have seen all sorts of attempts to change that situation over the last few years. I remember the subject coming through select committees where we encouraged Government departments to use car pooling systems where cars were provided. I was careful to ask at select committee meetings whether this was happening to any great extent. The systems seemed to be very hard to schedule and organise and frankly it did not happen. Whether or not we want to share even though there are lots of vehicles going in the same direction at the same time car pooling does not seem to be particularly catching on in New Zealand. In the more isolated parts of the country for instance down on the West Coast—which is an area that is very dear to my heart and I am sure to Assistant Speaker Rick Barker’s heart as well—if people driving through smaller communities see people hitchhiking it is common practice to stop and pick them up because there is no available public transport. Hitchhiking has developed into an art form in Takaka in Golden Bay where it is really part of the community structure that drivers automatically try to get more than one person in a car. 
But we see private vehicles continuing to be the most significant mode of transportation for New Zealand. It is therefore important that we use incentives to encourage the use of alternative fuel technologies as they are developed in order to help meet our environmental obligations over time. The wonderful thing about these light electric motor vehicles is that they improve the efficiency of the overall motor vehicle fleet. There are people with quite a lot of experience in assessing the age of a motor vehicle fleet and I think their view of New Zealand’s fleet is that it is not particularly flash in terms of emissions age and technology. If we can decrease the reliance on imported fossil fuel improve energy security and reduce vehicle emissions affecting air quality and greenhouse gas levels it must be a good thing. It is my belief that by combining highly effective electric motors with a competitive advantage in renewable electricity generation we can reduce the greenhouse gases produced by the transport sector. That sector is one of the largest producers of greenhouse gases as well as of the harmful emissions affecting air quality. 
As the debate on climate change continues it takes me back— 
Hon David Cunliffe 
: It’s Labour policy. 
CHRIS AUCHINVOLE 
: Well it has to be a shared policy really. It really does. I was very taken with some of the comments made that at last Labour is perhaps seeing the way to joining in discussions to see whether we can get things together. It is a little like— 
Hon Annette King 
: Chris you opposed it last year. 
CHRIS AUCHINVOLE 
: All I can say to the deputy leader of the Labour Party is that we do not look backwards; we look forwards. I am sure she will join us in that with this particular bill. We are indeed looking forward. 
It is true that electric cars are expensive vehicles. For example the light electric motor vehicle equivalent of a conventional car that cost 20000 bucks would cost in the region of $40000 to $80000. I think the Green Party member had more specific figures. But the global market for those vehicles is constrained with no immediate hope of an improvement no thanks to the low production volumes of first-generation vehicles. This is one of the traps of mass production that we live in. New Zealand is not at this stage seen as a priority market. There is not a light electric vehicle manufacturer in this country. We do not have them. However the Government plays an important role in the uptake of electric motor vehicle technology. After all my esteemed friend the Hon Dr Nick Smith has an electric vehicle I believe. It does happen; they are around. Part of the role of Government is to remove barriers that could prevent delay or dissuade people from engaging in the uptake of a market for light electric motor vehicles in New Zealand. One such barrier is road-user charges. The perception of that barrier is perhaps slightly disproportionate to the barrier of the large capital outlay for an electric vehicle but that is a consequence of the general negative perception about road-user charges. And there is a general negative perception. I think the National Government has gone a long way to enhancing the view of road-user charges by making sure that the money that comes off the road goes back on the road. 
Hon Annette King 
: That was our legislation last year Chris. 
CHRIS AUCHINVOLE 
: Indeed yes; with our encouragement. That just shows we do share things. 
Hon Ruth Dyson 
: You opposed it last year. 
CHRIS AUCHINVOLE 
: Well yes but then with a convincing argument and a little bit of modification it was worth doing. That is the benefit of give and take. 
Let us have a look at the consequence of changing this policy. The view was reinforced by the Energy Efficiency and Conservation Authority market research in 2008 in which 52 percent of 524 respondents stated that having to pay road-user charges would affect their decision to buy a light electric vehicle. It is easy to see why if we analyse how much it would cost in road-user charges for an electric car on an annual basis. Based on an electric vehicle weighing 2.5 tonnes or less and travelling the average distance of 12000 kilometres a year the cost would be $432 which is a significant amount of money. At the same time forgone revenue costs are small because there are very few electric vehicles in the fleet. The exemption will come into effect on 1 October this year if the legislation goes through all stages and will apply until 2013 when the initiatives will be reassessed. I think it is quite an important part of this legislation that the initiatives will be reassessed. So we are talking about $130000 for a year at the number of vehicles we have. 
Hon Maurice Williamson 
: Put a spark into it. 
CHRIS AUCHINVOLE 
: It is an electric car! I believe that the 42 days’ notice is a very good idea and will avoid the embarrassment that occurred last year through the unforeseen consideration of the sudden introduction of charge increases without notice. So the 42-day notification part of this bill will improve businesses’ ability to operate by providing them with time to pass on the costs of any road-user charge increases. 
In conclusion I tell the House that this Government believes in incentivising behaviour that has positive benefits and disincentivising behaviour that has negative consequences. The main thrust of the bill delivers the former. Road-user charges are a barrier to the uptake of light electric vehicles. We are removing this barrier to incentivise people to buy light electric vehicles because they are much better for the environment than the conventional car. They will improve the efficiency of the motor vehicle fleet decrease reliance on imported fossil fuels improve energy security and reduce vehicle emissions affecting air quality and greenhouse gas levels. The whole thing is extremely meritorious. Thank you.