6 May 2009

Media Release

Untrue claims made in reasons for abandoning major anti- vehicle crime measure

Yesterday the Transport Minister, Steven Joyce, announced that the Government is not going to proceed with the Whole of Vehicle Marking scheme approved twice by the former Labour Government on the recommendation of the Ministry of Justice Crime Prevention Unit.

The decision denies Police access to an available and affordable tool to curb organised crime and in doing so fails a key promise made by the Prime Minister prior to the election last November that Police would be given the tools to do their job.

Minister Joyce’s decision to abandon WOVM rests on three claims – all of which are untrue. It appears he has been misinformed by officials.

It is untrue to say that the costs of WOVM outweigh the benefits, as now claimed by Minister Joyce. The WOVM policy was twice submitted to independent cost-benefit analysis, once by the Government and the other by DataDot Technology Limited, with an independent review by PriceWaterhouseCoopers.  Both analyses demonstrated that the benefits would outweigh the costs, which was central to the former Government’s decision to adopt the policy.

It is untrue to say that vehicle marking has been made redundant by fitting immobilisers. There is ample evidence around the world showing the two technologies are complementary, and not to be substituted one for the other. WOVM deters organised profit-driven vehicle theft. Immobilisers act to reduce opportunistic theft such as joy-riding.  That is why the proposal for mandatory WOVM that is currently being considered by the European Commission is being assessed as an add-on to the existing rules on mandatory immobilisers.

It is untrue to claim that no other nation has introduced mandatory WOVM.  Taiwan, twice the market size of New Zealand, introduced mandatory WOVM two years ago. Insurance claims figures show WOVM has significantly reduced organised vehicle theft there and has been the key to Police busting a major organised vehicle crime ring.

The only winners from this decision will be criminals who steal vehicles and trade in the lucrative stolen vehicle parts market.

The decision also means DataDot Technology, one of several potential suppliers of marking services, will not be able to proceed with a $1 million investment in an Auckland manufacturing facility, supporting about 50 equivalent fulltime new jobs. The investment capital for this was raised some time ago.

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