The Nationals’ shadow infrastructure minister, Bridget McKenzie, has described Labor’s electric vehicle policy launch as a “missed opportunity” to achieve national consistency and warned the government not to rule out road user charging.
McKenzie made the comments after Labor announced a further consultation period for fuel efficiency standards, which some clean energy and transport stakeholders fear could push the long-anticipated reforms into next year.
The policy confirms the government will adopt fuel efficiency standards, with legislation possible by the end of 2023, but contains no new incentives to buy EVs.
McKenzie accused Labor of “stalling” reform with another round of consultation when stakeholders had already given their views on vehicle emissions standards.
She told Guardian Australia the government shouldn’t rule out road user charging “when it is tied to fuel excise and fuel efficiency standards – there needs to be one policy discussion rather than a fragmented one”.
McKenzie noted state governments “are already grappling with this issue” and implementing “different regimes”.
John Grimes, the chief executive of the Smart Energy Council, told Guardian Australia there was “no question” about the government’s intention, but it was “concerned that the can just keeps being kicked down the road”.
“By the end of this calendar year, will Australians be going out over the Christmas holiday with the choice of the world’s most efficient vehicles at their fingertips?
Or are we going to play into this dystopian future where Mad Max becomes reality in Australia?”
Grimes said there had been a “very concerted campaign by the fossil fuel car industry to wind back, retard and stop the implementation of strong standards from becoming law for as long as possible”.
“This is out of the playbook of the tobacco industry.”
The Greens leader, Adam Bandt, said the policy is “a roadmap but with no clear destination”.
“Until we have targets and strong fuel efficiency standards, we will continue to be a dumping ground for dirty, inefficient cars,” he said.
While stakeholders were surprised about the further six-week consultation period on fuel efficiency standards, some were unconcerned about the pace of reform, accepting the government’s assurances that it was motivated only by getting them right.
But the release of the EV policy has also sparked debate about the related question of fuel excise tax, which is not paid by users of electric vehicles.
Victoria’s imposition of a tax of 2-2.5 cents a kilometre for electric vehicles has resulted in a high court challenge, in which the commonwealth has intervened on the side of the plaintiffs against the tax.
On Wednesday the climate change and energy minister, Chris Bowen, said it had got involved due to the “constitutional precedents at play” and consultation for the EV policy “makes clear that we think more modelling and work needs to be done on the implications”.
The document referred to “uncertainty around the application of road user charging on EVs” and said the Australian government will “continue to update and enhance modelling of the long-term impact of increased EV uptake on fuel excise in the context of regular budget updates”.
The transport minister, Catherine King, told ABC TV that with just 7% of cars being electric vehicles, the federal government is “trying to put in place as many incentives as we can to electrify a passenger fleet”.
“We don’t want to put disincentives in the way of that,” she said. “We are not there yet, but we have to keep monitoring this.”
McKenzie said the transport industry, businesses that operate across jurisdictions and residents of border towns being subject to different regimes “risks investment into our road network and perverse outcomes as a result of not having a national approach”.
“So I think that’s an incredibly missed opportunity.”
Asked if road user charging will feature in the Coalition’s policy, McKenzie said it would address the “challenges with electrifying entire transport sectors and that being the only approach”.
“I think [that] really closes off our nation to other potential opportunities for a low-emissions transport sector that don’t solely rely on one technology [EVs].
“I think that’s important: [what about] biofuels? What’s going to be the role of hybrids? And I’m interested in the equity argument for our vulnerable low-income Australians and those of us that live outside capital cities.”
The Australian Automobile Association’s managing director, Michael Bradley, said: “Roads don’t build themselves. It is critical that the transition to low- and zero-emissions technology includes a serious plan to secure solid funding streams for road construction and maintenance into the future.
“The AAA believes electric and other zero-emission vehicles should be brought into the tax system as soon as possible, but initially at a discounted rate to avoid disincentivising take-up.’’
Later on Tuesday, Bowen announced a new $70m round of grant funding for charging infrastructure, to be delivered through the Australian Renewable Energy Agency.
