27 January 2013

MIA Supports Decisions on WOF/COF Review

“The Government has taken a pragmatic approach to introducing changes to the WOF and COF systems recognising the uniqueness of the New Zealand vehicle fleet and which over time will result in savings for every vehicle owner”, said Mr Perry Kerr, Chief Executive Officer of the Motor Industry Association.

“The MIA which represents the new vehicle industry was always in support of extending the time period between vehicle inspections. We saw this issue as being relevant to vehicle owners, and not one about job protection for the corner garage. The current system whereby the majority of vehicles are subjected to six monthly inspections is clearly over regulated and may have been suited to vehicles built in the 1950s and 1960s, but was no longer appropriate for the modern motor car”, he said.

“The MIA’s position as reflected in the decisions announced today was for the first Warrant of Fitness on a New Zealand new vehicle to last three years aligning it with the new vehicle warranty. Our research shows, new vehicles are regularly serviced during this period and we know the franchise dealer will, while servicing the vehicle, ensure that it is safe to operate on our roads. Likewise the MIA believed yearly inspections were also appropriate for vehicles over three years old, and again this is proposed by the Government”.

“The one area of the review, which we see as a missed opportunity, was to restructure the annual vehicle licensing fee and to remove the ACC component (which makes up the majority of the annual licensing fee) and to transfer this component into the price of fuel (petrol and diesel) at the pump. This would therefore ensure those people driving the most kilometres were paying the highest ACC fee. Without addressing the ACC component of the registration levy not a lot has changed”, he concluded.

ENDS

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