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Talks needed over impound laws

Industry association calls for more input on government’s plan to change legislation affecting its members.
Posted on 09 December, 2022
Talks needed over impound laws

Legal changes giving police greater powers to impound vehicles need careful consultation and evaluation, says the Motor Trade Association (MTA).

Under the changes announced on December 1, the owner of a car could have it impounded if they choose not to help police track down the driver of a fleeing vehicle.

However, the MTA has warned the implications of that for tow companies need to be considered.

“We all support efforts to keep our roads safe for everyone and keeping dangerous drivers off them,” says MTA spokesman Larry Fallowfield. “But many tow operators are already storing dozens of vehicles that have been impounded.

“In a lot of cases, these cars are low value, often unwarranted and unregistered, and the owners don’t bother to pick them up.

“That leaves the company with the unwanted problem of being stuck with a car in poor condition. Even if they do sell it, it’s often for peanuts as it’s going to the wreckers.”

The MTA says there also needs to be appropriate enforcement of fees owed by car owners because the association estimates there could be a 30 per cent increase in impound requests.

“Businesses shouldn’t be out of pocket either because of criminals or government policy,” says Fallowfield. “The MTA has members owed hundreds of thousands of dollars for unpaid impound fees for collection, storage and disposal.”

The association adds such charges have not been reviewed since 1999, so it’s calling for the Land Transport (Storage and Towage Fees for Impounded Vehicles) Regulations 1999 to be updated.

The MTA has been told by the Ministry of Transport that government officials will be consulting with the association on the law change.

“We appreciate the chance to work on this,” says Fallowfield. “We will be listening to what our members in the industry have to say, and channelling their advice and feedback to government.

“At the end of the day, they’re the ones on the front line. They will know better than anyone of the potential pitfalls and problems that need to be addressed.”

Photo: NZ Police