By 2021, the Government wants to see approximately 64,000 electric vehicles on New Zealand roads.

The Government plans to achieve this by introducing a range of initiatives and incentives that will remove barriers that have prevented households and business from buying EVs in the past.

Prime Minister John Key and Transport Minister Simon Bridges. Photo: Simon Bridges/Facebook

These barriers include limited selection of models available, lack of widespread public charging infrastructure and a lack of awareness about electric vehicles.

Speaking to SunLive, Transport Minister Simon Bridges says getting more electric vehicles on the road is not only the right thing to do environmentally but also a pretty smart choice.

'To put it simply, they are the future of transportation in New Zealand.

'They're cheaper to run than petrol or diesel vehicles, they're powered by our abundant renewable electricity supply and they'll reduce the amount of emissions produced.”

The package includes a range of initiatives like changes to Road User Charges exemptions for light and heavy electric vehicles, support for a roll-out of public charging infrastructure, and investigations into the bulk purchase of electric vehicles for the Government and private sectors.

Under the package, electric vehicles owners would also be allowed to drive in bus and high-occupancy vehicle lanes, while the Government also plans to review tax depreciation rates and the method for calculating fringe benefit tax so electric vehicles are not being unfairly disadvantaged.

But Simon does concede the package doesn't address the fact that purchasing electric vehicles can be well out of some households' and businesses' price ranges.

'The package is designed to be significant and to accelerate the switch to electric vehicles. The Government could say ‘let's do nothing' and leave it at that because over time more people will be driving EVs as that's what the car companies will be producing more of.

'But the package also includes a number of benefits to make the switch more attractive, like an annual saving of $600 on Road User Charges. Couple that with the money saved on costs like petrol, over the life of an electric vehicle that could amount to thousands of dollars.”

As part of the package the Government will also create a contestable fund of up to $6 million per year to encourage and support innovative low emission vehicle projects.

Simon believes there's a real chance in the Bay of Plenty to see people utilise this contestable fund to bring low emission vehicle innovations to our area.

'I'm already aware of some local players who are thinking of ways they can partner with the fund to do some cool stuff,” he says.

THE ELECTRIC VEHICLES PROGRAMME PACKAGE AT A GLANCE:

• A target of doubling the number of electric vehicles in New Zealand every year to reach approximately 64,000 by 2021
• Extending the Road User Charges exemption on light electric vehicles until they make up two percent of the light vehicle fleet
• A new Road User Charges exemption for heavy electric vehicles until they make up two percent of the heavy vehicle fleet
• Work across Government and private sector to investigate the bulk purchase of electric vehicles
• Government agencies coordinating activities to support the development and roll-out of public charging infrastructure including providing information and guidance
• $1 million annually for a nation-wide electric vehicle information and promotion campaign over five years
• A contestable fund of up to $6 million per year to encourage and support innovative low emission vehicle projects
• Allowing electric vehicles in bus lanes and high-occupancy vehicle lanes on the State Highway network and local roads
• Review of tax depreciation rates and the method for calculating fringe benefit tax to ensure electric vehicles are not being unfairly disadvantaged
• Establishing an electric vehicles leadership group across business, local and central government.

For more information on the Electric Vehicles Programme Package visit: www.transport.govt.nz/ev