"You just have to wonder whether so many young people really had to be tied up in the system if you could just get them a driver's licence," he said.
"Our effort has traditionally been targeted at very high-risk, high-end, very expensive programmes. I don't think we've stretched far enough into the volume of offenders."
Around 20 per cent of all charges laid by police related to traffic and driving offences. Convictions for driving while disqualified were one of the most common reasons for people re-entering the criminal justice system.
A Corrections spokeswoman said the department was now looking at a programme aimed at reducing low-level, repeat driving offences.
Many driving-related initiatives were already in place within prisons, but Mr Smith said these could be expanded further: "I don't think we've targeted enough effort in those spaces."
The primary focus was on helping offenders get their learner licence.
Breaking the cycle
Target:
Reduce reoffending by 25 per cent between 2011 and 2017.
This would mean 4600 fewer offenders returning to prison each year.
2013 progress:
Reoffending 12.5 per cent lower than 2011.
2014 progress:
Reoffending 10 per cent lower than 2011.