Commission grants clearance to VTNZ
17 November 2004
Commission grants clearance to Vehicle Testing New Zealand
The Commerce Commission has cleared Vehicle Testing New Zealand Limited to acquire all the assets and business of On Road New Zealand Limited subject to the divestment of facilities in both New Plymouth and Wanganui.
Both parties provide vehicle testing, inspection and related services from vehicle testing stations located throughout New Zealand.
Commission Chair Paula Rebstock said the Commission is satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in the markets for: entry certification in New Zealand; Land Transport Safety Authority (LTSA) administrative services in New Zealand; driver licensing services in Manukau; pre-purchase inspection services in New Zealand; Warrant of fitness (WOF) issuing in various suburban and regional areas; Class ‘A’ certificate of fitness (COFA) issuing in various suburban and regional areas; and Class ‘B’ certificate of fitness (COFB) issuing in Manukau.
Ms Rebstock said the Commission’s competition concerns in relation to the provision of COFA and COFB services in New Plymouth, and the provision of COFA services in Wanganui, were alleviated through the divestments.
The Commission’s written decision on the application will be available soon on the Commission’s website, www.comcom.govt.nz , select Adjudication.
Background Vehicle Testing New Zealand was established in 1994 as a State Owned Enterprise. It is a wholly owned subsidiary of MTA Investments Limited and is New Zealand’s largest supplier of independent motor vehicle safety inspections.
On Road New Zealand is a private company that was set up in 1992 when it purchased the North Shore Vehicle Testing Station and now has 15 vehicle testing stations throughout the country.
A WOF is a form of safety certification for private vehicles under 3.5. A COFA is a form of safety certification for rental vehicles and taxis. COFB is a form of safety certification for vehicles over 3.5 tonnes, such as buses and trucks.
All three types of certification are carried out by LTSA approved issuers, who test the vehicles for compliance with WOF, COFA or COFB standards established by the LTSA.