The Transport Agency [NZTA] has welcomed the sentencing of a South Island car dealer, who dishonestly claimed the Clean Car Discount Rebate.

Between March and April 2023, Hamish Gardyne applied for rebates on 119 Nissan Leaf vehicles, claiming they were demonstration cars.

The rebate for a Nissan Leaf was $3450 per vehicle, amounting to a total claim of $410,550.

The rebate could be claimed from April 2022 to December 2023 by low emission vehicle owners, and dealers were only allowed to claim for cars they registered to themselves and used as a company car, courtesy car or demonstration vehicle for at least three months.

Concerned about the number of claims for demonstrator vehicles from Gardyne's company, HVS (Hamish Vehicle Sales Ltd), NZTA began an investigation.

The investigation found that his claims were false, and that he had already sold and exported 90 of the vehicles to Australia.

NZTA recovered the one claim paid out to Gardyne, who later also withdrew his other 118 claims through his lawyer.

Appearing in the Dunedin District Court, Gardyne was sentenced to nine months and two weeks home detention, and 200 hours community work.

NZTA national manager road safety regulations Brett Aldridge said it sends a very clear message to the wider industry that this type of behaviour is unacceptable and a priority for NZTA.

"This sentencing was the result of many months of meticulous work.

"The scale of this fraud is significant, and this sentence should send a strong warning to anyone considering fraudulent activity in the vehicle industry - NZTA will investigate and prosecute when we find breaches."