Safer Journeys action plan - safe vehicles FAQs

Why are you no longer pursuing the Safer Journeys objective of reducing the average age of the vehicle fleet?

While it is desirable to have a younger vehicle fleet, research has shown that it would be an even more effective measure to ensure cars entering the fleet have safety features.

Couldn’t you lower the fleet age through a ‘cash for clunkers’ scheme?

The Ministry of Transport has investigated ‘cash for clunkers’ type schemes and in 2009 held a trial scrappage scheme in Wellington and Christchurch. These trials showed that a nationwide scrappage scheme was unlikely to be cost effective due to the low number of vehicles received and the relatively low overall social and environmental benefits, relative to the costs.

In general the countries that have conducted scrappage schemes have done so largely to support their domestic vehicle manufacturing industries. For this reason they have offered high incentives to participants as the economic benefits from increased vehicle manufacture remained inside their country. New Zealand doesn’t have a vehicle manufacturing industry and so offering large incentives in New Zealand is unlikely to ever provide the potential benefits of these overseas schemes.

Reports on Ministry of Transport scrappage trials are available on the Ministry’s website. 

The Ministry is not currently planning any further scrappage trials.

What is Right Car?

Right Car is a website which gives consumers information about the safety and fuel efficiency of both new and used imports.

Visit the Right Car website 

What is the Australian Stars on Cars initiative?

‘Stars on Cars’ is an information campaign used in Australia that encourages participating new-car traders to display the Australasian New Car Assessment Program star ratings on 4 and 5 star vehicles at point of sale.

What is the risk rating and levy setting process?

Risk rating is an insurance process for grouping insured people into categories based on the risk of loss they represent to the insurance company. ACC uses a form of risk rating called class rating to group vehicle types into ‘classes’ that represent a similar risk of loss to the ACC scheme. The risk of loss is a combination of how often people in those vehicles are injured and how much each injury costs ACC.

ACC’s levy setting process first determines how much levy ACC requires to ensure it can pay the lifetime costs of any covered injury that happens in the year. ACC then works out an aggregate levy for an ‘average’ vehicle. This forms the basis from which the levy rates are set. ACC determines the levies for each class of vehicle by calculating the relativity factor for each class. The relativity factor is the risk rating for the class divided by the risk rating for the reference class (which is passenger vehicles).

ACC then consults with the public over its proposed levies. The results of the public consultation and the impact of any economic changes are included in the levy rates recommended to the government. The government makes the final determination of the levy rates for each class of vehicles.

How are you going to increase public awareness and demand for safer light vehicles?

We will be looking to do this by promoting resources such as the Right Car website to fleet owners and the wider public,..

What is the operator rating system?

The operator safety rating system gives heavy vehicle operators safety ratings based on their safety performance. These ratings will be available to potential customers and others with an interest in the industry, such as finance and insurance firms.

Doesn’t this punish businesses for the actions of individual employees?

Ensuring businesses take responsibility for their employees is an important aspect of creating a workplace safety culture. The operator safety ratings will benefit heavy vehicle operators with good safety records as customers are more likely to choose their services. There will then be flow-on benefits to their employees. Poorer performing operators will have to improve safety in order to attract customers. The ratings will also allow Police to focus on the most risky operators.

Won’t mandating electronic stability control (ESC) increase costs for industry?

The government is committed to reducing compliance costs for business across the transport sector. An investigation of proposals to mandate ESC would also consider any costs this might impose to industry and weigh these up against the benefits. Mandating ESC would be done in line with other overseas jurisdictions so there are vehicles available for import to ensure costs to business would be minimised.

What is Vehicle Certification Online?

Vehicle Certification Online is a future vehicle database from the Motor Vehicle Register that will provide a single view of all attributes about a vehicle, including its safety features and other items not presently recorded in the Motor Vehicle Register. It will enhance vehicle policy development capability and assist with bench marking the fleet against new safety initiatives. The database will be used by the New Zealand Transport Agency and its vehicle testing agents.