The Australian
By: Sid Maher
The deadline for tougher emissions standards for cars is likely to be put back after Australian vehicle manufacturers warned they would struggle with the massive investments required to meet the new rules and some imports could be forced off the market.
The Rudd government has planned to start phasing in Euro 5 emissions standards from 2012 and even tougher Euro 6 standards from 2016.
The car industry has opposed the move, arguing that Australian fuel standards are not high enough to support the new emissions regulations.
It has also predicted the timetable may mean some imported cars from Asia could not be sold in the Australian market.
The industry has also warned that early adoption of the tougher emissions plans would jeopardise the future of plants such as Ford's Geelong motor factory.
In a submission to the government, the Federal Chamber of Automative Industries said: "Significant investments would be required to upgrade local manufacturing to enable locally produced vehicles to meet Euro 5/6. The alternative is closure of local manufacturing with accompanying loss of jobs."
Also, it said, motorists would face higher fuel prices as refiners were forced to upgrade fuel standards.
Transport Minister Anthony Albanese signalled the deadline could be pushed back.
"The government is willing to discuss adjustments to the timeframe with the FCAI, which could help to minimise compliance costs while maintaining air quality benefits," Mr Albanese told a recent car industry dinner last week.
"But the government expects industry to show leadership and embrace the purpose and intent of the change and not substitute prevarication for action."
The potential delay in the new emissions standards comes after the government shelved its Carbon Pollution Reduction Scheme until at least 2013.
Instead, it has embraced energy efficiency and renewable energy initiatives.
FCAI chief executive Andrew McKellar said the industry had had "constructive exchange" with Mr Albanese.
The moves to push back the tighter emissions standards come as the government this week announced a $200 million cut to the Green Car Innovation Fund over the next three years "due to lower than expected demand".