Critics doubt value of vehicle fuel-efficiency rebates, penalties

Greenpeace says the rebates for new fuel-efficient vehicles announced in Monday's federal budget will do little to stem pollution.

As of Tuesday, the government began offering rebates forthe purchase of newcars that use less than 6.5 litres of gasoline for every 100 kilometres driven, and minivans or SUVs that consume less than 8.3 litres (based on55 per cent city driving and 45 per cent highway).

The basic rebate on these vehicles will be $1,000 and will increase by $500 for every half-litre reduction, to a maximum of $2,000.

This is a mail-in rebate, which customers would have to apply for themselves.

Quebec's director of Greenpeace, Steven Guilbeault, said the initiative will do little to reduce pollution caused by passenger vehicles, which account for about 12 per cent of Canada's total greenhouse-gas emissions.

The Conservatives also plan to levy a penalty on some of the heaviest polluting non-commercial vehicles. Pickup trucks are exempt from the provisions. Vehicles that burn more than 13 litres per 100 kilometres will be hit with a penalty of at least $1,000.

The penalty will rise to a maximum of $4,000, levied on passenger vehicles that guzzle more than 16 litres per 100 kilometres.

It's expected that less-efficient models such as the Chevrolet Trailblazer, Ford Explorer, Nissan Pathfinder, Jeep Grand Cherokee and, of course, the GM Hummer, could end up being taxed at the highest rate.

The levy would be applied to the manufacturer or dealer at the point of sale.

Guilbeault of Greenpeace said most passenger vehicles on the market in will not fit into either program.

"It will be new vehicles being sold. And only five per cent of new vehicles being sold will be affected by this levy, so it's an interesting measure, but it's very marginal. "

A Toronto-based auto industry analyst said the federal government would do better with a gasoline tax hike.

"At the hint of a gas tax, buyers will scramble for fuel-efficient vehicles," said Dennis DesRosiers of DesRosiers Automotive Consultants.

DesRosiers compiled a list of 21 vehicles he saidshould be eligible for rebates and another ofabout 100he expectswillbring a penalty.

He cited figures from over the last four years that show when gas prices went up, sales went down and when prices dropped, sales rose.

Higher gas prices will encourage the drivers of the more than 19 million vehicles now on the road in Canada to drive less and better maintain their existing vehicles, DesRosiers said.

He added that higher gas prices will also encourage manufacturers to bring in more efficient vehicles from around the world and the most advanced diesel technology from Europe.