MP: Rego system ‘out of control’

An Auckland vehicle owner received 58 fines in one year for failing to display a current registration – at an estimated cost of $11,600.

The annual vehicle licensing has been labelled a ‘‘giant revenue gathering device’’ as figures are released on the number of tickets issued.

Labour MP Phil Twyford said the system was out of control with 235,000 fines issued each year.

‘‘I think most people think there must be a good reason for it, it’s about safety or whatever, but no – it’s just about revenue gathering.’’

Twyford said the system cost taxpayers $58 million to administer. The money could easily be paid with warrant of fitness charges or by an increase in fuel tax, saving the administration cost. ‘‘It’s time to look at the whole system and consider whether or not we need at all to be requiring people to update their licence, and forgo a big wad of cash every year.’’

An official information request showed police handed out about 124,000 tickets in 2016, with all the money collected going to the Crown.

Auckland parking wardens also handed out about 58,000 such tickets over a similar period, at a face value of $11.6m – and the council kept half of what was collected.

This included a single vehicle with 58 infringement notices, at $200 each, for failing to display an up-to-date registration.

The Ministry of Transport does not hold figures on the number of tickets issued nationally but a 2012 government review revealed that each year motorists are dished out 235,000 tickets across the country.

Automobile Association (AA) spokesman Mark Stockdale said motorists who moved house might miss their reminder to re-licence their vehicle. Filling out a change of address form with NZ Post notified lots of organisation but not NZTA, he said.

The AA also thought the agency should be able to email or text reminders. People got really annoyed at a $200 fine when they did not deliberately flout the law, Stockdale said.

‘‘People don’t necessarily check their label in their windscreen.

‘‘How often do you do that? It’s our responsibility, but it’s not necessarily something people actually check. We need a reminder.’’

Salvation Army community finance co-ordinator Jodi Hoare said the majority of people she helped had fines they were paying off. A large percentage of these were due to not having a current warrant of fitness or registration, she said.

‘‘It’s a chicken and egg thing. Because if your car’s not warranted they can’t register it. So then they get fined for both.’’

Beneficiaries with fines often had $20 to $40 redirected out of their benefit before they received it, Hoare said.

‘‘When your total income is maybe $500 and half of that is going on rent, $20 going here or there is a big deal.’’

A Ministry of Transport spokesman said the fines were effective in making sure people paid their registration.

‘‘Removing the infringement fee would create a risk that some people may try to avoid a late payment fee by simply not licensing their vehicles at all.’’

The cost to register a car for a year is currently between $77 and $208, depending on the vehicle’s ACC vehicle risk rating.

‘‘The vehicle licensing system has a number of purposes, including a road safety purpose, which involves keeping the motor vehicle register up to date,’’ he said.

The Ministry of Transport and the NZ Transport Agency led a vehicle licensing reform review in 2012.

In its wake, changes were made to the warrant of fitness and certificate of fitness – but not to annual vehicle licensing.

This was because the costs to implement them could not be justified.

Most people paid their licensing fees but many were slow to pay on time, the review found.

Suggested changes included text and email reminders, late payment fees and ‘‘better targeted’’ penalties.

A ministry fact sheet at the time said ‘‘annual vehicle licensing is mostly for revenue collection’’.