Climate Change Minister David Parker says proposals just announced by the government to modernise the cars on New Zealand's roads will not see vehicle prices soar, as was reported today.

The government is investigating ways to improve the fuel economy of vehicles, to reduce the greenhouse gases that contribute to climate change, and to reduce the harmful effects of vehicle emissions.

To do this, the government has asked the Ministry of Transport to work with the motor industry on a regulated sales-weighted fuel economy standard for new and second-hand vehicles. The Ministry is also considering an age restriction on used imports.

David Parker said it was important progress was made to reduce greenhouse gas emissions in the transport sector.

"The effect on prices is something we'll look at during the consultation period, but we do not expect any prices rises to be dramatic. In addition, improved fuel economy will mean consumers benefit from cheaper fuel bills."

• For more on why it's important to take action to deal with climate change, please see David Parker's feature article on the matter, here