Price of used cars could soar

Published: 7:22AM Tuesday November 13, 2007 Source: Newstalk ZB

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The motor vehicle industry is getting nervous at plans to impose new standards on used imported vehicles.

The legislation increases emissions standards and is designed to bring New Zealand in line with international environmental guidelines.

Independent Motor Vehicle Dealers' Association Chief Executive David Vinsen says the new rules won't cut pollution. He says it will only make cars more expensive.

Vinsen says this will make people hold onto their old cars for much longer.

Meanwhile, there is concern about the effect the proposed scheme will have on other businesses.

Two industry associations surveyed 32 firms to find out what it would cost them, with a carbon price of $30 per tonne.

Greenhouse Policy Coalition Executive Director Catherine Beard says it will cost those companies around $241 million all together in increased direct energy costs.

She says because the scheme has been designed without a safety cap, it is putting industries at risk.

Beard says the government needs to re-think its decision to expose businesses in this way.

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