NZTA crackdown on conflicts of interest over vehicle imports and testing

Monday, 19 November 2018

NZTA is worried about the risk from potential conflicts of interest of vehicle importers and inspectors.

An outspoken road safety campaigner is calling on the NZ Transport Agency to instantly revoke the vehicle inspection licence of a local subsidiary of the Japanese-based Optimus group.

Clive Matthew-Wilson, editor of the car review website Dog And Lemon, was reacting to NZTA's crackdown on conflicts of interest through a special review that will also affect small service stations.

Clive Matthew-Wilson, editor of the Dog And Lemon car reviewer magazine.

The trigger for NZTA's concern was the takeover of vehicle testing company VINZ in 2013 for $4.5 million by a subsidiary of Optimus while other companies in the group certify vehicles coming into New Zealand, carry out repairs, issue warrants of fitness and sell them.

'This is completely unacceptable. Until this conflict of interest is resolved, Optimus should have its vehicle inspection license revoked,' Clive Matthew-Wilson said.

Separate branches of AA carry out licencing, testing and warrants of fitness.

* Big importer allowed to test its own cars on New Zealand roads

* Vehicle inspection firm launches VINZ bid**

Matthew-Wilson said NZTA's proposed changes don't really change anything.

'Even under the existing rules, conflicts of interest are prohibited. The problem was not a lack of rules, but a lack of enforcement of these rules,' Matthew-Wilson said.

The chief executive of one of the Optimus subsidiaries, Gordon Shaw of VINZ, said the companies were managed and governed separately and was never any risk, even though they had the same owner in Japan.

Several smaller independent local vehicle dealers and inspectors have urged NZTA to take action, and if necessary, take away licenses from one of the Optimus companies.

AA is likely to be caught up in the policy review because it is a service provider to NZTA for import entry certification, as well as carrying out warrants of fitness and certificates of fitness.

However AA has not been the focus of the local dealers and inspectors who have focused their dissatisfaction on the Optmus group which includes JEVIC, Nichibo, and VINZ.

VTNZ also carries out licencing and testing that may be perceived as having potential conflicts of interest.

NZTA said while its focus was certification of used imports, smaller service stations carrying out repairs and issuing warrants were also in its sights.

The main changes include clarifying a definition of conflict of interest, strengthening controls for used vehicle entry certification inspectors and organisations, and making sure they declare any actual, potential, or perceived conflicts.

People or organisations applying to become used vehicle entry inspectors and certifiers would not be allowed to certify vehicles they have an ownership interest in or carry out entry inspections of any vehicles that they or someone linked to them has previously inspected at the border.

NZTA also wants to know who might be advantaged or disadvantaged by any changes.

'We believe that these proposed changes will not affect the availability of used cars in New Zealand,' NZTA said.

'The proposed policy changes may have implications around who can certify vehicles being imported to New Zealand.

'The purpose of this consultation is to help us to understand potential impacts on businesses,' NZTA said.

Smaller garages and services stations would need to demonstrate how any conflict of interest was being managed.

When NZTA created its conflict policy in 2014 it expected some integration of the used vehicle supply chain, but not to the extent that occurred, and it said there was a potential risk.

All vehicles entering New Zealand must be checked, certified, registered and licensed before they can be used on the road.

The changes will come into effect by December 19, 2018, subject to submissions.