Part 1: The importance of safe vehicles

Regulating vehicle safety inspections.

1.1
On average, one person is killed and another seven are seriously injured in road accidents every day. The effects of this are significant and widespread. The Ministry of Transport estimated the social cost of road crashes and injuries was $11.57 billion in 2022.

1.2
Improving road safety has many benefits and has been a priority for successive governments. Because there are many causes of road crashes, there are many ways to reduce them. Poor road design and driver behaviour (such as speeding) are significant factors to address, but vehicle safety is also important.

1.3
The Government can control and influence vehicle safety in several ways, such as by promoting car safety ratings to encourage people to buy safer vehicles and by setting minimum safety standards for new and imported vehicles.

1.4
One of the ways that the Government controls vehicle safety is by requiring a regular warrant or certificate of fitness inspection for all vehicles to check they continue to meet minimum safety standards. Each year, about five million vehicles are inspected for either a warrant of fitness (for cars and other light vehicles) or a certificate of fitness (for heavy vehicles and passenger service vehicles). New Zealanders rely on the integrity of warrants and certificates of fitness to provide confidence that their vehicles meet minimum safety standards.

1.5
Vehicle safety technology is evolving rapidly. Newer cars increasingly offer automated safety features that reduce the risk of crashes occurring or protect people from harm when a crash does occur.

1.6
However, New Zealand's vehicle fleet is old compared with many other countries. In 2023, the average age of a light vehicle in New Zealand was almost 15 years. This means New Zealand vehicles are less likely to have modern safety features.

1.7
The New Zealand Transport Agency Waka Kotahi (NZTA) is the Crown entity responsible for regulating the land transport system, including vehicle safety. As part of the vehicle inspection system, NZTA authorises individuals and businesses to inspect vehicles and issue warrants and certificates of fitness on its behalf.

1.8
We carried out a performance audit to look at how effectively NZTA makes sure that vehicle inspectors and inspecting organisations meet requirements for inspecting vehicles and issuing warrants or certificates of fitness.

Why we did this audit

1.9
New Zealanders have one of the highest rates of car ownership in the world. When an owner pays for a warrant or certificate of fitness, they expect that their vehicle has been thoroughly inspected and is safe to drive. Collectively, New Zealanders pay millions of dollars annually for these inspection services and expect to get value for money.

1.10
There have been instances where trust and confidence in the vehicle inspection system has been affected. Some vehicle inspectors have failed to meet requirements – for example, by issuing warrants of fitness without fully inspecting the vehicle.

1.11
We did this audit to help provide Parliament and the public with assurance about the integrity of the vehicle inspection system. We wanted to see whether NZTA has effective measures in place to ensure that its requirements for vehicle inspections are being met, and that timely and appropriate action is taken when they are not.

How we carried out our work

1.12
We looked at how well NZTA:

  • promotes compliance and prevents, detects, and responds to non-compliance by vehicle inspectors and inspecting organisations; and
  • uses information to review and improve the effectiveness of its monitoring of vehicle inspectors and inspecting organisations.

1.13
To carry out this audit, we:

  • reviewed more than 90 documents and information across a range of websites;
  • interviewed people from NZTA, the Ministry of Transport, and the vehicle inspection industry;
  • observed four site reviews where NZTA staff assessed vehicle inspectors and inspecting organisations; and
  • observed a meeting of a management panel that considers cases of non-compliance.

1.14
We did not look at:

  • NZTA staff capability and performance;
  • NZTA's regulation of other types of vehicle inspection (such as its border certification teams, which inspect the safety of imported vehicles); or
  • whether the standards vehicles need to meet to receive a warrant or certificate of fitness and the frequency of inspections are appropriately set to ensure vehicle safety.

1.15
We did not assess the progress NZTA has made in implementing specific recommendations from any previous reviews and audits, including reviews carried out after serious failings of the vehicle inspection system or reviews of NZTA's regulatory fees and funding. However, we do refer to those reviews throughout this report to help provide context.