Proposed fee changes for driver licensing and testing services have been confirmed and will take effect from 1 July.

Transport Minister Steven Joyce says the new fees will correct poor financial oversight by the previous government and ensure the costs of actually providing services are recovered.

“Driver licensing and testing fees were last reviewed in 2001. Since 2006, the cost of providing the driver licensing and driver testing services has not been met by the fees charged and the gap between revenue and costs has steadily grown.”

For 19 services the new fees will be lower than those currently charged, while fees for 22 services will increase – including those for sitting learner, restricted and full licence tests.

Four fees, including those for drivers aged 75 years and older, will not change.

Public consultation on the new fees was held from 28 January to 26 February. The majority of submitters were in favour of the changes.

Mr Joyce says that while it is disappointing to have to increase some fees, there has been no fee change since 2002, and any increase has been kept as low as possible.

The new fees for the most common licensing and testing services are:
 
Among the benefits to come from the changes are reduced and standardised fees for commercial licences.

Mr Joyce says there is currently there is much variation in the fees for commercial driver licences and this has caused confusion.

“Three new fees will also be introduced. These are a licence reinstatement fee for disqualified drivers and drivers suspended for demerit points, and administration fees for withdrawing from and/or rescheduling a driving test.

“The reinstatement fee ensures responsible drivers do not bear the costs created by those who have lost their licences through offending.”

The reinstatement fee will be introduced on 31 January 2011. All other fee changes will be in place from 1 July 2010.

“Even with these new fees, the NZ Transport Agency will have to make some cost savings, and is currently looking at ways to further improve its systems,” says Mr Joyce.

“I have also asked officials to conduct a wider longer-term review of the driver licensing and driver testing business model to ensure customers and tax payers are getting value for money.”

Further information, including a complete list of the new fees is available at: www.nzta.govt.nz

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