Courts axe $95m in unpaid fines

New Zealand courts cancelled almost $100 million in fines and reparations in the past financial year. Photo / Greg Bowker

New Zealand courts cancelled almost $100 million in fines and reparations in the past financial year - a jump of $14 million on the previous 12 months.

It was also a leap of more than $63 million in five years, figures released to the Herald under the Official Information Act show.

Between July 2008 and June last year, courts wiped $95.1 million of the total $806 million in unpaid fines, the Ministry of Justice said.

This compared with $81.6 million the year before and $31.6 million five years ago.

Fines are cancelled if they are unpaid after the enforcement date, or if the court believes the defaulter can't pay.

Wellington had the biggest amount wiped ($10.4 million), followed by Canterbury ($10 million) and the west coast of the North Island ($9.5 million).

Collections general manager Bryre Patchell said the fines were usually replaced with community work terms, home detention, curfews or imprisonment.

In the first five months of the 2009-2010 financial year - from July to November - fines worth $50.1 million were wiped, the largest amount being $5.4 million from the central Auckland region.

The biggest single fine cancelled this financial year was one of $125,000, imposed on an unidentified Auckland company.

A Wellington company had an $85,000 fine wiped, and two other Auckland companies each had $60,000 fines cancelled.

Between July 2008 and last June 30, the biggest fine written off was $80,000 from a company that had been struck off the companies register and did not have any assets to seize.

In the same period five years ago, $800,000 owed by Alwen Industries of Pakuranga was cancelled. The firm had been struck off the companies register in 2001.

Mr Patchell said the court could seize assets or income belonging to a company, but when it ceased trading, its limited-liability status prevented the court seizing assets belonging to directors or deducting payment from their personal income.

The biggest amount in fines accrued - not remitted - by an individual or company so far this financial year is the $12,488 owed by a 25-year-old Auckland man for traffic offences.

And the biggest fine imposed this financial year is $391,671 on an individual for fraudulently using a document for pecuniary advantage, followed by $325,000 on an individual for fraud and $138,397 on another person for evading taxes.

* Cancelled

July 2008-June 2009:

$95.1m in fines and reparation wiped, against $81.6 million the year before.

Wellington had the most ($10.4m) cancelled, followed by Canterbury ($10m).

Biggest single fine wiped: $80,000.

$806 million in unpaid fines, compared with $783.4 million the year before.

July-November 2009:

$50.1 million in fines and reparations cancelled.

Auckland central had the most wiped ($5.4m), then Canterbury and the west coast of the North Island (both $5.1m).

Biggest single fine remitted: $125,000 for an Auckland company.

Largest fine imposed: $391,671 for fraudulently using a document for pecuniary advantage.