Pre-election special: Electric vehicle subsidy

Fleet News has secured exclusive interviews with the three most important political figures for fleets – transport minister Paul Clark, Conservative shadow transport minister Theresa Villiers and Liberal Democrat transport spokesman Norman Baker.

Here we quiz Villiers and Baker about their policy on whether the Labour Government's multi-million pound commitment to ensure fleets adopt electric vehicles through an electric car subsidy will survive.

You can listen to the two opposition transport spokesmen's responses by following the audio links below.

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Play Audio Fleet News Audio Links

Theresa Villiers, Shadow Transport Minister for the Conservatives:
> carbon reduction
> low emission company cars
> electric car subsidy
Norman Baker, Shadow Transport Spokeman for the Liberal Democrats:
> decarbonising transport
> incentivising low CO2 company cars
> electric car subsidy

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The commitment of up to a £5,000 subsidy for each new electric car from 2011 is now in question and it is unlikely this subsidy will remain if there is a change of Government.

The Tories agree that there is a “need to green the fleet”. As Villiers says, how quickly fleets adopt electric cars will determine the speed at which they are accepted in the general market place.

However, fleets need to know whether they will get the financial help they have been promised under the Tories.
“It is impossible to say whether we would continue with that [£5,000 subsidy],” she warns.

“All the commitments that this Government has made will be subjected to value for money review were we to win the General Election. The state of the public finances mean that we are facing a desperate situation.”

Despite this caution, she does not write the idea off completely.

“We also recognise the potential benefits of a financial incentive to switch to greener options, but it would be irresponsible for me to give promises at this stage that a future Conservative Government would be able to keep.”

Baker is clearer that the subsidy would not survive under the Liberal Democrats.

“I do not favour a subsidy but I do favour measures that incentivise low carbon vehicles,” he says.

“A graduated showroom tax where those at the top end pay for those buying at the bottom end. It is not a subsidy from the exchequer, it is an internal market subsidy from sales.”