David Farrar: Saving billions through fewer WOFs

The Government announced:

“Compared to other countries, New Zealand has very frequent inspections for light vehicles. Modern light vehicles are significantly safer and more reliable, but our rules haven’t kept pace, imposing unnecessary costs on motorists. Other countries including Ireland, Germany, Japan, and Australia inspect every one to two years or at ownership change and achieve comparable or better safety outcomes,” Mr Bishop says.

“The Government’s changes mean that most light vehicles under 14 years old will move to two-yearly WoF inspections (up from yearly), and new vehicles will go four years before their second WoF. Older vehicles, motorcycles, and light rental vehicles will move from six-monthly to yearly inspections.

“These simple changes will deliver massive benefits for Kiwis. The cost-benefit analysis shows the changes are expected to deliver between $2.6 billion and $4.1 billion in net benefits over 30 years through reduced inspection fees, less time spent on compliance, and fewer unnecessary repairs.

This is an excellent move. The current regime imposes huge costs for little if any benefit. A brand new car doesn’t need to have a check up after 12 months.

Most US states, Australian states and Canadian provinces don’t even have any mandated regular check. Our new regime is a sensible compromise.

David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition.