By Blair Qualey
The 2024 BC General Election was as close as it comes, with the sitting NDP government winning a razor thin majority. And while a number of issues dominated the campaign, the concerns about affordability were certainly prominent.
This week, Premier David Eby unveiled a new Cabinet that he says is ready to listen to British Columbians and deliver on the core challenges people are facing.
The New Car Dealers Association looks forward to working with the new administration to address policy changes that bring cost relief to consumers. To that end, we have communicated to government, several issues requiring their attention – and more importantly, action.
I want to extend congratulations to Brenda Bailey on her appointment as Finance Minister and Anna Kang in Post Secondary Education and Future Skills – as their portfolios will be key points of contact in the weeks and months ahead.
I also want to congratulate Adrian Dix, on his appointment as Minister of Energy and Climate Solutions because a number of our major concerns /opportunities reside in his portfolio.
First and foremost are the rigid policies associated with the Zero-Emission Vehicle Act. This framework includes significant financial penalties on auto makers ($20,000 per vehicle) for not meeting mandated targets requiring 26% of light-duty vehicles sold in BC be ZEVs by 2026, 90% by 2030 – and 100% by 2035.
While these time frames may appear far down the road, the reality is that automakers make investment and business decisions well in advance. As a result, the prospect of major penalties within a fairly tight window has some manufacturers already threatening to reduce allocation of all vehicles (including gas powered) by 15-20 percent as early as January, in order to meet mandate quotas.
Without Min. Dix and government adopting a level of flexibility, it can be expected that the majority, if not all automakers, will reduce supply to meet quotas – and its consumers who will pay in the end because limiting inventory means a higher price point for all new and used vehicles, as we experienced during the pandemic.
Other key issues include:
Restoring sustainable electric vehicle incentives to pre-pandemic levels. Continued financial incentives for all-electric vehicle purchases are essential to encourage consumer adoption and support the growth of the ZEV market while the differential continues between the price of ZEVs and their gas equivalents.
Increasing Annual Funding for Electric Vehicle Fast-Charging Infrastructure. Simply put, sustained and increased funding for province-wide electric vehicle infrastructure is vital to long-term ZEV adoption.
Raising the BC Luxury Vehicle Tax (PST) Threshold to $100,000. The current B.C. luxury tax on vehicles kicks in at a $55,000 purchase price (set back in 2006), while the average cost of a new vehicle has now reached $66,000. The current threshold captures many vehicles that are not luxury items – such as family vans or SUVs to transport children to activities, or pickup trucks that may be required for work or as a lifestyle preference, particularly in rural or isolated settings.
Increased investments in Post-Secondary Education for the Automotive Sector through the BC Jobs Fund. Investing in education and training is crucial for the continued growth and success of the automotive sector, and government’s desire to increase zero emission vehicle adoption. By increasing funding in post-secondary programs focused on automotive technologies and services, we can ensure a well-trained workforce capable of meeting the demands of this evolving industry and contributing to the broader provincial economy.
The Premier has suggested he and his Cabinet are ready to listen and deliver on the challenges they are facing. We will be counting on the new administration to live up to those words.
Blair Qualey is President and CEO of the New Car Dealers Association of BC. You can email him at [email protected].
