No time to decelerate, Minister

Media Release 27 April 2012

No time to decelerate, Minister

Yesterday’s release of the Terms of Reference (ToR) for the Vehicle Licensing Reform review will give stakeholders a clearer picture of government’s objectives and its thinking, but it also gives rise for concern says the Motor Trade Association (MTA).

Not only does the review represent an opportunity to enhance vehicle safety and implement a licensing scheme that represents world best practise, MTA are certain that the scheme can be reformed to be more efficient and capture those who currently seek to avoid paying their fair share. Early indications from the ToR are not especially encouraging however; government is seemingly intent on reducing costs without taking the opportunity to improve wider aspects of vehicle safety.

MTA spokesperson Ian Stronach says “Government’s review of the overall licensing regime is sound and sensible. There’s no doubt that the system can be changed to provide better overall outcomes, however the ToR are quite narrow and appear to lack long term aspirations for New Zealand. Seeking changes that achieve ‘similar or improved safety and environmental outcomes’ suggests a move towards a light-handed approach when what’s needed is a long term vision and strategy. We encourage Minister Brownlee to take a long term view.”

Having minimum regulation is admirable in principle, unfortunately efforts over recent years in areas such as house construction and financial markets indicates that in some cases, more regulation would have led to a better result. Managing risks involves regulation and compliance, and the automotive sector is no different.

“Part of New Zealand’s international brand proposition is based on the quality of our environment. It is short sighted to exclude regulation that would work to support our environmental standing and ensure the automotive sector is working to first world standards.”

The ToR further suggests that on some points, government already has firm expectations of the outcome of the review. Claiming that our road safety regime may be ‘potentially ineffective or inefficient’ because ‘the level of safety risk may not justify the level of intervention’ infers that its mind is already made up about where changes can be made and ‘costs’ reduced.

Stronach says “As government itself is saying, safety cannot be disconnected from risk – the two go hand in hand. The last thing motorists are looking for is a reduction in costs based around a trade off in safety. After many years of internationally sub-standard performance, New Zealand’s road safety results are improving. At a time when much is being poured in to better roads and road safety initiatives with positive results, we believe government should be cautious about relaxing vehicle safety inspections.”

It has taken many years to effect meaningful change in our environmental and road safety outcomes, and it would be a tragedy if these were to be undermined for the sake of short-term financial gains.

ends

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