12. Electric Vehicles—Uptake and Government InitiativesJULIE ANNE GENTER (Green) to the Minister of TransportElectric Vehicles—Uptake and Government Initiatives12. JULIE ANNE GENTER (Green) to the Minister of Transport: Can he confirm Treasury advised Ministers that his electric vehicles package will not be effective at encouraging the uptake of EVs representing low-value spending and a missed opportunity to prepare New Zealand for the wide-spread uptake of low emission vehicles"?Hon STEVEN JOYCE (Minister for Economic Development) on behalf of the Minister of Transport: Treasury did make that comment—with the prefix "in their view"—but I have to say if the member is looking to Treasury as a potential ally in the electric vehicles (EVs) category then I must say that she is likely to be quite disappointed.Julie Anne Genter: Given the Ministry of Transport estimated that there would be 64729 electric vehicles in New Zealand by 2021 without Government intervention why did the Minister set a target of only 64000 vehicles by 2021? Is it because the Government does not actually plan to increase the number of electric vehicles?Hon STEVEN JOYCE: The substantive question was actually in regard to Treasury advice but nevertheless the Government is very keen to achieve the maximum number of electric vehicles that would make economic sense by 2021. We have a comprehensive package to ensure that that target is reached. If the member would like me to go through it I am more than happy to.Julie Anne Genter: I raise a point of order Mr Speaker. My question was about the target that the Government set and how it is lower than what the Ministry of Transport estimated would occur—Mr SPEAKER: On this occasion I will allow the member to repeat the question. If she could make it a little more concise it would probably be easier but the opportunity is there.Julie Anne Genter: Given the Ministry of Transport estimated that there would be 64729 electric vehicles in New Zealand by 2021 without any Government intervention why did the Minister set a target of only 64000 electric vehicles which would actually mean a reduction in the number of electric vehicles that was expected without any Government intervention?Hon STEVEN JOYCE: As the substantive question was directed to Treasury advice I do not have that exact quote from the Ministry of Transport to hand so I cannot confirm the first part of the member's question. In any event whether it is 64000 or 64000 and change that would be a lot of electric vehicles by 2021. The Government is determined that that number be achieved and that is why it has a package to make sure that it is achieved. If the member wants to debate what the target should be I am more than happy to do that but 64000 is a long way ahead of where we are today.Julie Anne Genter: I seek leave to table this document from the Ministry of Transport which shows how many electric vehicles would occur without any Government policy—Mr SPEAKER: Order! I just need to confirm that it is not available on the Ministry of Transport website.Julie Anne Genter: It is publicly available—Mr SPEAKER: Order! Then I will not—Julie Anne Genter: —but it is very difficult to find.Mr SPEAKER: Order! No if it is publicly available members who want it will find it.Julie Anne Genter: Is it because his Government's EV campaign does not really have any substance that he has now announced his electric vehicle fund on three separate occasions including on 5 May 12 August and yesterday 14 September?Hon STEVEN JOYCE: No and I reject the assertion in the member's question. It is a comprehensive package that includes extending the road-user charges exemption which is the matter that Treasury was critical of; a new road-user charges exemption for heavy electric vehicles; and investigating with the private sector the bulk purchase of electric vehicles to bring more supply into the country—that is a very important part of the story. Government agencies are coordinating the development and roll-out of public charging infrastructure. There is $1 million annually to inform and promote the use of electric vehicles. There is up to $6 million per year to encourage and support innovative low-emission vehicle projects—Mr SPEAKER: Bring the answer to a conclusion please.Hon STEVEN JOYCE: —there is allowing electric vehicles in bus lanes and high-occupancy vehicle lanes; reviewing tax depreciation—Mr SPEAKER: Order! The general debate will start shortly.Julie Anne Genter: Given Treasury says in its advice that the money would be better spent on reducing the upfront price of electric vehicles rather than on the unlikely-to-be-effective initiatives that he just mentioned why does his Government not support the Green Party's proposal to exempt electric vehicles from fringe benefit tax which would reduce the upfront cost of new EVs by a third?Hon STEVEN JOYCE: Treasury's first best advice on these matters is to not do anything at all. If it is the member's preference to back Treasury advice then I really do suggest to her that it is probably not the department to support the fringe benefit tax. But anyway if she is keen on Treasury it has some other policies for her. It would encourage her to put interest back on student loans and also—Mr SPEAKER: Order! We are now moving to an area that does not have much to do with the question.Julie Anne Genter: I seek leave to table this advice from Treasury released under the Official Information Act that says that it is its view that money would be better spent directly subsidising the upfront—Mr SPEAKER: Order! The document has been described. Leave is sought to table it. Is there any objection? There is none. It can be tabled.Document by leave laid on the Table of the House.Sue Moroney: Why did he choose such a tiny target for electric vehicles—to be just 2 percent of New Zealand's vehicle fleet by 2021—given that New Zealand needs to reduce carbon emissions by 30 percent and transport accounts for almost half of those emissions?Hon STEVEN JOYCE: Because electric vehicles are not the only way in which emissions will be reduced. In fact emissions are being reduced—Sue Moroney: Oh there'd be rail as well wouldn't there and you're stuffing that up too.Hon STEVEN JOYCE: —in all the rest of the fleet—if the member wants to listen. In all the rest of the fleet emissions are being reduced because of the increasing fuel efficiency of New Zealand's wider vehicle fleet. So it is across a whole range of areas. Yes you will see more electric vehicles. You will also see more hybrids and you will also see a range of different vehicles that have lower emissions and that will help meet our target."