Mike's Minute: Feebate scheme a dangerous waste

Author
Newstalk ZB,
Publish Date
Mon, 14 Jun 2021, 9:26AM

Mike's Minute: Feebate scheme a dangerous waste

Author
Newstalk ZB,
Publish Date
Mon, 14 Jun 2021, 9:26AM

First thing first, the feebate is a new tax. It's a new tax from a government that said there would be no new taxes.

The same government that said there would be no Capital Gains Tax and yet changed tax deductibility on investment properties and changed the Brightline, essentially making them liars.

Second problem with their dream-laden obsession with EVs is they argue that those who pay extra for a petrol car will pay for the deduction of an EV. This is despite the fact that they have no idea what people will buy, how often, when, or for how much.

And the maximum rebate is $8000, the maximum extra charge is $6000. The only thing you can give them an element of credit on is if the extra patrol car charges don't cover the EV rebates they will pause the scheme.

But what they don't tell you is, for how long. And if it's paused, what are they waiting for? And for how long?

Then you get to the problem of cost. A rebate doesn't close the price gap. Most people buy on price, that's why EVs don't sell.

That's before you get to the dangers of the used EV market. Firstly, it is not well established and therefore resale prices aren't set. So you have no idea what you're getting back when you sell. Secondly, the older the EV, the more issues you're going to face with batteries, replacements, and disposal.

Then we get to the unfairness of basically subsidising people who don't need it. If you're forking out for a $75,000 Tesla, do you really need the farmer who buys the Hilux subsidising you? Let us not forget those people, the heartland of New Zealand who don't have an EV choice, even if they wanted one. Why should ute buyers pay for your down-towners?

Then you get to the fraud over the charging network. A charging point on highways every 75 kilometres, really? The feebate starts in two weeks, when's the charging network up? Two weeks? Don't make me laugh.

That's before you get to the fact that a charger isn't a solution if you turn up and it's busy, and the person is there for an hour.

Yet again, this is theory, delusion, and wonk-like behaviour dreamed up in a library in Wellington by people who are so divorced from the real world, it's embarrassing.

As we have always said, you want an EV? Buy one. But don't expect the rest of us to buy it for you.