A federal program to pay $5,000 rebates to electric car buyers went more than 150% over budget, according to auditors..The rebates cost taxpayer more than three quarters of a billion and were “an ongoing concern.”.“The uptake of the program was higher than expected and funding was an ongoing concern,” said an Audit Of Incentives For Zero Emission Vehicles Program. The Department of Transport report added: “The program’s main risk is not having sufficient funding to meet the demand.”.According to Blacklock's Reporter, cabinet in 2019 offered rebates up to $5,000 to buyers of new electric vehicles priced at $45,000 or less. The program was then expanded to vehicles priced up to $70,000..The cost of rebates was originally budgeted at $300 million over three years. “The uptake of the program was higher than expected and funding was an ongoing concern,” wrote auditors..“The program exhausted its original funding of $300 million and received two subsequent funding top-ups of $287 million and $172 million to continue the program until March 31, 2022 as planned,” a total $759 million..“Budget 2022 included an additional $1.6 billion to extend the program to March 31, 2025,” said the report..Rebates in the first three years were paid to a total 136,940 car buyers. Electrics represent about five percent of road vehicles in Canada, by official estimate..The Department of Transport in 2020 calculated each electric car lowered tailpipe emissions by about three tonnes a year..“We assume that each zero-emission vehicle saves an average of 3.46 tonnes of emissions per year based on the average new internal combustion engine vehicle,” Sau Sau Liu, spokesperson for the department..Then-Environment Minister Catherine McKenna launched the rebate program “because we know that we need to reduce emissions across the board,” she told reporters at the time..Electric cars “are incredible,” said McKenna. “They run smoothly and quietly with zero emissions.”.The environment department in a December 31 Regulatory Impact Analysis Statement said its overall program to mandate use of electric cars would cost at least $99 billion, including subsidies for buyers, automakers and commercial fast charging station operators. Cabinet ordered electrics account for a minimum 20% of new vehicle sales by the 2026 model year rising by increments to 100% by 2035..“Zero emission vehicles are expected to generally cost more,” said the Analysis Statement. Mandating that Canadians buy them is “expected to lead to a loss of consumer choice,” it added.
A federal program to pay $5,000 rebates to electric car buyers went more than 150% over budget, according to auditors..The rebates cost taxpayer more than three quarters of a billion and were “an ongoing concern.”.“The uptake of the program was higher than expected and funding was an ongoing concern,” said an Audit Of Incentives For Zero Emission Vehicles Program. The Department of Transport report added: “The program’s main risk is not having sufficient funding to meet the demand.”.According to Blacklock's Reporter, cabinet in 2019 offered rebates up to $5,000 to buyers of new electric vehicles priced at $45,000 or less. The program was then expanded to vehicles priced up to $70,000..The cost of rebates was originally budgeted at $300 million over three years. “The uptake of the program was higher than expected and funding was an ongoing concern,” wrote auditors..“The program exhausted its original funding of $300 million and received two subsequent funding top-ups of $287 million and $172 million to continue the program until March 31, 2022 as planned,” a total $759 million..“Budget 2022 included an additional $1.6 billion to extend the program to March 31, 2025,” said the report..Rebates in the first three years were paid to a total 136,940 car buyers. Electrics represent about five percent of road vehicles in Canada, by official estimate..The Department of Transport in 2020 calculated each electric car lowered tailpipe emissions by about three tonnes a year..“We assume that each zero-emission vehicle saves an average of 3.46 tonnes of emissions per year based on the average new internal combustion engine vehicle,” Sau Sau Liu, spokesperson for the department..Then-Environment Minister Catherine McKenna launched the rebate program “because we know that we need to reduce emissions across the board,” she told reporters at the time..Electric cars “are incredible,” said McKenna. “They run smoothly and quietly with zero emissions.”.The environment department in a December 31 Regulatory Impact Analysis Statement said its overall program to mandate use of electric cars would cost at least $99 billion, including subsidies for buyers, automakers and commercial fast charging station operators. Cabinet ordered electrics account for a minimum 20% of new vehicle sales by the 2026 model year rising by increments to 100% by 2035..“Zero emission vehicles are expected to generally cost more,” said the Analysis Statement. Mandating that Canadians buy them is “expected to lead to a loss of consumer choice,” it added.
