New government BMWs were part of a contract the former Labour Government signed up to and more expensive models were chosen because of a fuel efficiency "fad," Finance Minister Bill English says.
The Green Party says it is outrageous the government is selling its three-year-old fleet of 34 luxury limos and replacing it with new BMWs, at a time when ministers are telling others to save money.
The new cars sell commercially for about $200,000 each but the government gets a discount for bulk buying. The actual cost is not being stated, for commercial reasons.
Green's co-leader Metiria Turei said Prime Minister John Key and his ministers were always telling New Zealanders they had to tighten their belts and had said the Government was doing the same.
"When John Key is cutting staff and creating unemployment in order to apparently tighten the Government's belt, this kind of spending is an outrage," she said.
Mr English told Radio New Zealand that the contract was signed by Labour in 2007 and expired in 2014 and the changeover of cars was part of it.
"It's a bit rich from the Greens because one of the reasons the Labour government bought the BMWs was because they were meant to reduce carbon emissions, they were meant to be the most fuel efficient cars even though their capital cost might have been higher than other options," he told Radio New Zealand.
"I think it does show that being driven by a fad, which at the time was to have lower carbon emissions, means that you can make decision – which were made by the previous government – turn out more expensive than they expected."
Mr English said when the contract came up for renewal the Government would see if there was a better deal and probably a "more mainstream model of car". He said breaking the contract and paying penalties but still needing to buy new cars might leave the Government worse off.
"The electorate always thinks that politicians are pampered, overpaid, and far too well looked after and I don't think that's going to change.
"I don't think a government in the current recession would decide to pick a luxury brand car with all those extra bits...whatever the value for money."
Comments and questions
Another example of wanton hypocrisy. The Govt. insists upon the taxpayer to tighten their belts, while at the same time loosening theirs.
BB has a problem. He can't help it if he is entitled to have a different set of rules for himself. Accommodation entitlement, dodgy GST calculations, $374,000 pumpkin, another 3 years to run on the Beamers... really bad judgement.
BMW have goofed over this one. How on earth the calibre of these passengers can add anything to the brand, I'll be darned. Even worse joe public gets to know the likely margin the brand has spare. Next thing we will see them as giveaways in competitions!
Let it be known -- that the 7 series BMWs are a cross between a lemon and a dog. Always have been. The rate of depreciation -- even after the first year -- means they're best re-sold at a garage sale.
"I think it does show that BEING DRIVEN BY A FAD, which at the time was to have lower carbon emissions, "
The ink is hardly dry and Bill you have the audacity to admit that lower carbon emissions is a fad.
Mr English you did not have the integrity or courage to vote against the disgraceful ETS tax that your ‘dear’ leader Smile & Wave and your contemporary Nickpocrisy Smith foisted on us.
It is very clear that those in power have no feelings of guilt or shame for the shocking violations created by their egotism. Definitely not there for the good of the people.
in reality i understand it to be a good deal for the taxpayer - the cars were about or just under $100K for each, and it was BMW who simply dropped their pants for the deal. i would suggest once you include warranty, service plan, cost of diesel V petrol it will work out about the same as falcons etc. also add in the fact that BMW has been loosing market share to Audi over the past 3 + years and it is nothing short of an attempt to register some cars to try and catch up. i see BMW were slightly ahead on new regos last month - first time in a while. Another factor will be the buy back price - 3 year lease sees 40%(ish) on value so call it a lazy RV of about $60K to give a little fat and the overall costs on the lease are quite good. also ask the question as to why the deal is not public.... it would expose the dire state of what BMW has to do in order to sell a 7 series
Bill English is a compulsive liar...
http://tvnz.co.nz/politics-news/accusations-fly-over-government-s-new-bmws-4029913
But ONE News political editor Guyon Espiner said it is not a contract as such." They had an option to renew, they did not have to, they would not have broke a contract at all," Espiner told TV ONE's Breakfast this morning.
Again, the ruling elite decree one set of standards for themselves, and another for the great unwashed. Should we be at all surprised? Especially, coming from Bill English -- the purveyor of the double-standard.
Go home and do your homework, green doggy when you are barking the wrong tree....
So is Clodeagh a BMW owner/driver? Yes, the cars lose their value at a horrific rate, as does all the "Big Iron" in the European marques. That doesn't make them a bad car.
As a vehicle, they are fantastic, and a damn good buy for the 2nd purchaser.
Having bought, owned and driven BMW across the range from small to large for 23 years, and experienced the running and servicing costs - as well as the depreciation cycle - calling them lemons or dogs is pure ignorance.
Currently with two twin-turbo diesel cars (1-Series and 3 Series) as day-to-day transport, I'd happily be the next purchase of an ex-govt 7 Series diesel. What a great vehicle for towing.
It's about what it cost to own a car. That's the whole transaction, not just the bit where you buy it.
Good Grief, this sounds like a BMW advert! It's not meant to, but I am definitely a believer in the brand.
blatant hypocricy
why was the contract not cancelled??
a very bad move particularly when this minister is constantly espousing our need to save and cut costs
this just makes his words empty!
peter martin
It's amusing the piece about 'because the model can't be had in NZ normally it must be flash and exclusive'. If you compare the model ranges available for ANY Euro marque in Europe vs NZ you'll see we get stuff all - and the stuff we don't get is peppered all over the range - often including base models. We just get the cars that they think will a) sell well and b) will uphold the exclusivity (and therefore price) of the brand. They don't want joe public here schlumping around in a steel wheeled base model 3 series like they do in the UK (where such cars outsell the boring bog standard Ford Mondeo). The dulling of the brand image here would mean risking their margins....
But hey, don't let that little fact ruin a good story.....
The fact that Phill Goof has not - contrary to his usual "bark at anything" tactics - said anything, speaks volumes! Read between the lines on this one.
bmw are dogs i have one.
I can't believe some of the absolute rubbish written here on this.
It is a 3x3x3 lease agreement NZ was signed into by the Labour Govt with these cars.
As a country what should we do to provide transport to our top brass and overseas visitors...Skoda's???
If you go in behind the scemes you will probably find that the deal is comparable to any other up market vehicle??
I hear that "Hone" is unhappy that the arm rests are on the inside of the doors, and not the outside..
Then sell it, and buy a...Skoda.
Cancel the contract with Beemer they are hardly going to sue the NZ Govt? Then go and buy 34 Skoda Superbs - They are excellent cars and are infact better than what the politicians deserve. It would send a great signal to the voting public, and an excellent signal to Standard and Poors etc.
Bud, like many of your posts, but "cancel the contract" what a joke.
Of course BMW would sue the Govt unless the contract was canceled and compensation was paid.
The contract is probably quite favorable so lets get on with life. When the contract terminates the Govt can make whatever changes are deemed necessary.
To the Greens who supported Labour in their spending blitz, shame on you.
Hone isn't happy about anything, perhaps he would like the Govt to buy cars build by his constituents, problem is it would not have any windows or a roof so that those who drove around could always have their hand out for something. Either that or looking to get their palms greased as they move about.
Skoda Superbs would indeed be a good option.
When Gillard is in the country, there are problems around the world all you can think of is cars. we have to have bigger european can or Brownlee cannot get in as the door does not open far enough on a holden or ford, and it needs a big opening for Hone for his head. Get real folks the car story is a dead story. And Labour did want more fuel efficient cars, why not diesel as according to the AA it is now more expensive to run a diesel than petrol car. Thanks Greens
I think it is very significant that Bill English now describes cutting carbon emissions as a 2007 fad.
Presumably that fad has now passed, as the world wakes up to the CO2 scam. So why hasn't the ETS passed as well?
So when are the OPEN TO ALL auctions being held. Big chance to earn export dollars!
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