The "final phase" of implimenting the exhaust emmission rules for most cars imported into New Zealand will come into force on January 1, 2012 and the importers are worried that will reduce used imports by half. They have launched a campaign to get a two year deferral of these rules.
Basically, car and truck importers will be limited to importing vehicles no less than ten year old, and those vehicles will need to meet the 2005 manufacturing country emission standards in force when they were built.
The importer's problem is that about 2005, emission standards and testing requirements got way tougher in Japan at that time. And cars being imported need to be tested in Japan and certified as compliant, before being imported into New Zealand.
It is a piece of policy enacted by the previous Labour government, and brought considerable scorn from the then-National opposition principally because it could have the perverse effect of raising emmissions.
But it is not clear that the National government is about to take its own recommendations. In 2009, Steven Joyce has previously confirmed that the new policy would stay in effect. He seems unlikely to change now, and the importers have spoken briefly to the Prime Minister about their concerns.
The argument is that these tough new standards will kill off the importing of used imports, forcing up the price of used cars in New Zealand, and encourage drivers to hold on to their old cars for longer.
Those opposing the implimentation of the final phase include the vehicle testing industry, like MTA-owned VTNZ, who say they will lose "30 to 40 employees ... we estimate about 20% to 30% of compliance sites would be forced to be closed ..." All up, the industry employers claim up to 300 people may lose their jobs as a result, "specific skills lost ... that would be difficult to replace."
The Imported Motor Vehicle Industry Association (IMVIA) claims used imports will drop from "between 95,000 and 110,000 used vehicles in 2011" down to "between 45,000 and 60,000 units" if the final rules are allowed to be implimented. They say that means about 40,000 cars per year will stay on the road per year getting older and older, increasing their emissions as they age.
It will certainly mean we will need to pay more for used imports - the cost of cleaner vehicles.
But the new-car importers are not sympathetic. While saying "it is not our fight", they are not supporting the used importers, accusing them of a short-term approach to the issue.
The last tab in this chart plots used car imports.
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