Foss disputes licensing revenue

Tukituki MP Craig Foss is denying claims the Government has made nearly $13 million from driver licences. Photo / Warren Buckland.

Tukituki MP Craig Foss is denying claims the Government has made nearly $13 million from driver licences.

In response to similar questions earlier this year the Associate Transport Minister said "the Government does not 'make money' on this - the fees are set on a cost recovery basis".

Yet an Official Information Request has revealed that the Government has made $12,973,000 on driver licensing and driver testing during the past four years. The request was submitted by Phil Twyford last month when he was Labour Spokesman for Transport.

List MP Sue Moroney has since taken over the portfolio in the party's recent reshuffle, and released the figures exclusively to Hawke's Bay Today.

Labour's Tukituki spokeswoman Anna Lorck said this was just another example of Mr Foss "losing his footing".

"Hawke's Bay's got used to Craig Foss not doing his homework," Ms Lorck said.

Yet Mr Foss claimed she was "again confused".

"[Ms Lorck] has no understanding of how government accounts for fees have operated over many years, as per longstanding Treasury guidelines," he said.

"She was wrong to say it costs $800 to get a full licence - the total cost of all application and test fees is $338.20." He said driver licensing fees on average over a number of years are expected to cover costs to zero, otherwise the fees would be constantly changing.

"Therefore there will be years where revenue exceeds expenditure and years where expenditure exceeds revenue," he said.

Ms Moroney said she released the figures because they showed "that there is a profit being made by the Government".

She said the Government needs to assess the whole licensing system to ensure the barriers are removed to people getting their licences.

"That is the first thing that needs to happen. Because if people haven't got their full licence that restricts them from being able to apply for a whole range of job opportunities."

Ms Lorck said learning to drive should never have become a licence to print money for the Government but since putting up the fees, it's making millions off New Zealand's learner and restricted drivers every year.

"This is in the public interest because excessive costs are a huge roadblock to progressing through to getting your full drivers' licence," she said.

"A drivers' licence is a fundamental life skill that sets you on a road to independence and work, but instead we have the Government holding our young people back and even worse is profiteering off them."