Solving traffic congestion: How financial aid could revolutionise transportation

Kahn Day’s journey to becoming an e-bike advocate started with a simple question: “What sort of bike do you ride?”

It resulted in a profound shift in the construction worker’s mindset.

Now e-bike retailer Dan Wallace is holding Day up as an example to others of how environmentally conscious solutions can help address transport challenges.

Day worked for a company helping to build Tauranga’s cycleways. To better understand cyclists and the product the company was delivering, he trialled riding an e-bike every day in September.

The experience left a lasting impression and led him to mostly replace his vehicle with an e-bike for commuting and daily errands.

“Rain, hail or shine, I rode everywhere,” he told the Bay of Plenty Times. “It was really good, I learned a lot.

“To experience it first-hand is a powerful tool in our planning and now I choose to ride the bike over the car regularly.”

Day’s commitment to using the e-bike had numerous positive effects.

There were no parking costs, no servicing fees and no fuel worries, and it cost very little to charge it up.

Kahn Day has converted from a car to an e-bike since September. Photo / Alex Cairns

He found he could often reach destinations within the city faster than he would in the car, and found himself less stressed by avoiding congestion.

He also liked that it produced zero emissions and contributed to cleaner air.

Much like buying a first car, Day advocated for others to consider e-bikes as a symbol of independence.

“In and around town, what’s the need for cars? Most cars only have one person driving in them from A to B.

“I’m not against cars but I think we need to make the most of this investment [cycleways] with our growing population.

“The roads should be left for the people that need them — tradies with their tools, ambulances and emergency vehicles, taxis, and Uber.”

One-third of vehicle trips in New Zealand were shorter than 2km and two-thirds were shorter than 6km, according to the Ministry of Transport.

Day firmly believed that if more people like him, who primarily travelled for meetings or carried minimal items, opted for alternative modes of transport, it would significantly alleviate congestion.

Electrify NZ Tauranga owner-operator Dan Wallace shared Day’s passion for sustainable transportation and said e-bikes were a cheap alternative that cost around 20 cents to travel 100km.

He said there was a growing interest among New Zealanders to become more environmentally conscious and he believed the Government played a crucial role in making e-bikes more accessible, particularly for middle- and low-income families.

The cost of living crisis exacerbated the difficulties faced by many families in adopting e-bikes, Wallace told the Bay of Plenty Times.

While they had become more affordable, with some of the cheapest priced from $1500, financial constraints meant discretionary funds were often directed towards essential expenses such as housing and saving.

Electrify NZ owner-operator Dan Wallace. Photo / Alex Cairns

Wallace said the use of e-bikes as transport would help address climate change as transport emissions became the fastest-growing source of greenhouse gas emissions in New Zealand, accounting for 20 per cent of all produced emissions.

He suggested that a well-designed programme, including financial assistance such as rebates or subsidies, could significantly help families transition to sustainable transportation alternatives.

While the Government introduced the Clean Car Discount Scheme in 2021 to reduce emissions, Wallace argued it primarily benefited those who could already afford electric vehicles.

The scheme imposed charges on high-emitting vehicles and rebates on low-emitting ones, with the Government providing an extra $100 million repayable grant to fund the scheme.

Wallace proposed redirecting the funds to make e-bikes more affordable, highlighting the long-term cost savings and reduced environmental impact.

E-bikes produce zero emissions and contribute to cleaner air. Photo / Warren Buckland.

“Traffic congestion, in my opinion, probably the number one issue in Tauranga, can be addressed by incentivising e-bikes,” he said.

“[The Government] are just encouraging people to stay in their car.”

Now stood-down from the role of Transport Minister, Michael Wood was approached for comment for this article when in the role.

In May, he said in a statement that since the scheme came into effect in 2021, more than 100,000 rebates had been granted.

“The scheme is forecast to save New Zealand from importing 1.4 billion litres of petrol.

“At current prices, the economy will save an average of $325m a year less on fuel, out to 2035.

“The Clean Car Discount is doing what we set out to achieve, which is reduce transport emissions and provide transport options to New Zealanders that will lower household costs [in] the long term.”

In April, the NZ Herald reported electric car makers thought the scheme was saving New Zealanders $115m a year in fuel bills.

The analysis was from Drive Electric, a group representing EV manufacturers, power companies and other firms in the EV sector and was based on the fact that cars imported since the scheme began were on average 12 per cent more fuel efficient than vehicles imported prior to the policy taking effect.

Driving an average of 10,500km a year, adding up to about 105l saved per vehicle.

According to the petrol price-saving app Gaspy, prices for 91 octane fuel ranged from as low as 216 to 227 cents per litre in Tauranga on Sunday. In Rotorua, prices ranged from 213 to 239 cents per litre.

Luke Kirkness is an assistant news director for the Bay of Plenty Times and Rotorua Daily Post, covering general news. He previously worked at the New Zealand Herald for three years, mainly as a consumer affairs reporter. He won Student Journalist of the Year in 2019 at the Voyager Media Awards.