Freebie warrant inspections gone

Motorists will have to pursue garages for warrant of fitness refunds when inspectors are suspended for substandard work.

More than 73,000 vehicles have been recalled for safety checks since the NZ Transport Agency (NZTA) began cracking down on the issuing of warrants and certificates of fitness last October. When inspectors were suspended, the agency gave affected motorists free vouchers for new warrants but that quietly stopped last month and customers will now have to go after warrant inspectors for retest costs.

NZTA regulatory manager Kane Patena said even though the agency was not legally liable, it had chosen to cover warrant rechecks but now the backlog had been cleared, it would no longer do so.

‘‘Suspended service providers will be liable to their own customers if their work isn’t up to scratch.’’

Vouchers already issued will be honoured until the expiry date.

Since the voucher system ended, the agency has suspended a further four inspectors in Auckland, Wellington, Tauranga and Kawhia, affecting more than 4000 vehicles.

The Motor Trade Association (MTA) backs the agency move to end the freebies and said it was unsustainable for government to keep footing the bill when private businesses failed to carry out their duty. Inspecting organisations are required to have civil liability and professional indemnity insurance to cover such costs, and MTA recommends its members have at least $1 million worth.

Each year more than 8000 inspectors carry out 4 million warrant inspections and the agency’s clampdown on standards found a range of problems.

They included a failure to properly inspect brakes, lights, corrosion repairs, and seatbelts, passing serious defects and allowing unauthorised staff to do inspections.

A review of the agency released on Wednesday said the current system was a challenge because it delegated regulation to inspecting organisations that provided a service to paying customers. As a result some warrant and certificate inspectors saw ‘‘the commercial imperative as more important than the regulatory responsibility’’.

The agency is more closely scrutinising applications to conduct vehicle inspections and that has resulted in a backlog which is causing big problems for repair shops left unable to issue warrants for up to five months.

MTA advocacy manager Greig Epps said the delays were hugely stressful for business owners.

There were major financial consequences because warrants brought in many customers and some MTA members reported losing up to $3000 of work per month while they waited for a decision from NZTA. Garages applying months in advance to renew their notice of appointment to issue warrants were finding it ran out before the paperwork was processed.