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Agency plans to shake-up fees

Waka Kotahi tells representatives from across the transport sector it will soon be seeking feedback on how to boost funding.
Posted on 15 March, 2022
Agency plans to shake-up fees

Proposals to overhaul regulatory fees and charges for a range of services provided by Waka Kotahi NZ Transport Agency will go out for public consultation on March 21.

The agency told a regulatory services industry forum, which was attended by nearly 80 people from across the transport sector on March 14, it has received government approval to begin seeking feedback on its proposals.

Kane Patena, director of land transport, told the online meeting it was the first time since 2008 that charges for services such as warrants of fitness (WOFs), certificates of fitness (COFs) and licensing had come under review.

The consultation period will run for eight weeks – double the mandatory spell of four weeks – before Waka Kotahi makes its recommendations to government about whether fees should increase and by how much.

Patena noted the move follows a 2019 review into the organisation’s regulatory capability and performance by consultancy firm MartinJenkins

“One of the things that was called out in the MartinJenkins report in 2019 was that the regulator was not adequately resourced,” he explained.

He said the agency had conducted an extensive amount of work on its fees and applied “cost-recovery principles” to see where the impost for supporting regulatory activities should fall.

Patena added the report provides “transparency” about regulatory fees and charges and the services the agency delivers.

Income from those services is one of three key sources of revenue for Waka Kotahi, with other monies coming from the National Land Transport Fund and direct crown funding.

The eight-week consultation will shape the agency’s recommendations to government, but Patena made clear to the forum the final decision of any changes to fees will rest with cabinet ministers.

“It’s a comprehensive review. There’s a lot packed into this [consultation document] and a lot for people to absorb,” he added.

“We want to give people from across the sector a proper amount of time to read and digest this … [and] give ourselves an extended period of time to put people and leaders in a position to understand why we have proposed things.

“There are lots of options and choices in terms of what we might recommend to government … but what’s being proposed might not be what cabinet ultimately signs off.”