For a country that touts its progressively green policies, Canada’s horn is sounding a bit rusty. Regulations that curb the use of low-speed vehicles (LSV) have pushed out car manufacturer Dynasty Electric Car Corporation and into Pakistani hands.

"Canada does not have favourable legislation for these types of vehicles," said general manager of Dynasty, Danny Epp. "As a result, Karakoram Motors decided to purchase the assets to manufacture (in Pakistan) and export those vehicles back in to the North American Market. They can produce those vehicles at a considerably lower cost than we can in Canada to stay competitive and keep the company in business."

Since 2001, Dynasty has manufactured LSVs in Delta and shipped them to their primary market in the U.S., where 44 states allow them. Canadian regulations are more stringent than they are in the U.S., effectively creating a small market for companies like Dynasty.

"The States are moving towards a much more practical use of the vehicle so it can have more widespread use while B.C., in fact, is going the other way," said Epp.

While B.C. is the only province in Canada to permit the use of LSVs for general use on public roadways, proposed legislation could take them off the streets all together.

A new Neighborhood Electric Vehicle (NEV) regulation will allow these vehicles to travel on all roads in the province with up to 40 km/h speed limits and on roads up to 50 km/h with local government approval where safe and appropriate.

Critics charge that if neighbouring municipalities adopt different approaches, they will effectively wipe out the zero emission electric vehicle market.

"The new proposed regulation would limit the use of roadways to those with posted signs of 40km/h, which in fact don’t exist, except for around playgrounds," said Epp. "It’s a way of taking these vehicles off public road ways."

In a recent article, MLA for Okanagan Westside, Rick Thorpe, defended the proposed changes, claiming that local governments are best suited to make decisions about safety in their own communities.

"There are a number of roads across the province posted at 50 km/h where the use of these vehicles would not be appropriate due to safety or other reasons. Zero emission electric vehicles do not have many of the safety features of regular cars and their use is not appropriate on highways or on higher speed roads," he said. "While we want to broaden the use of zero emission electric vehicles, we want to do it where safe and appropriate."

Because LSVs are made with lightweight metals and plastics, Transport Canada doubts the vehicles could withstand a collision with trucks or sports utility vehicles. Officials want them confined to campuses, military bases and airport terminals.

Manufactures allege Canada’s less than friendly electric policies stem from political bias. Stephen Harper’s Conservative government is largely backed by oil-rich Alberta.

Here in B.C., Epp says getting his cars onto public roads has involved one battle after the next. LSV customers have been barred from the EcoAuto program initiated by Transport Canada – a rebate program where both the federal and provincial government reward drivers $2,000 each for purchasing low emission vehicles. LSVs do not qualify because they are not licensed to travel on highways.

Epp says its unfair the rebate has been restricted to his product simply based on where the cars can travel instead of emission targets.

"Ironically, the hybrids only reduce their emissions while operating on their batteries in urban stop and go traffic while LVS’ are 100 per cent emission free all the time," said Epp. "It’s a nonsensical argument that we just can’t seem to get around."

Perhaps even more ironic is the fact that a company dedicated to eradicating harmful emissions originally based in a country that created the first carbon tax will be shipping its product from Pakistan back halfway around the world to the U.S.

Until Canada starts creating regulations that help expand the market for electric vehicles, companies in the business will have to find greener pastures elsewhere.

"What would have helped keep us here is if we were able to access some of the incentive programs that Canada has for low emission vehicles," said Epp. "It would have also helped if there was a much more favourable business climate here which seems pretty difficult to do."