Vehicle inspectors are worried changes to the warrant system will hurt their businesses - with one worried he could lose up to half his custom.
The fears were raised as regional leaders met in Dunedin to discuss how to grow the regional economy in the face of what some have called a regional decline.
Warrant of fitness inspectors this week warned their businesses were about to face a threat of their own.
From next January light vehicles first registered between 2004 and 2008 will be required to have an annual, rather than the current six-monthly, warrant of fitness inspection. From next July, annual inspections will be extended to include all light vehicles first registered on or after January 1, 2000. Older vehicles will still have to get six-monthly inspections while new cars will have an initial test and will not need to be tested again for three years.
The Government estimated the changes would save motorists an estimated $1.8 billion over 30 years.
Dunedin Warrant of Fitness Centre Ltd director Tom Park estimated the changes would remove about half of his annual business.
''It's the biggest threat we've had to our business in eight years [of operation] and all because its going to supposedly save people $50 a year,'' he said.
Mr Park did not believe the public would save any money, as the changes could cause some businesses to raise the price of inspections. In addition, instead of having potential repair costs spread through the year, drivers might now be hit with one big bill all at once, he said.
Given New Zealand's poor-quality roading, compared with other parts of the world, Mr Park believed six-monthly inspections were required, for safety reasons.
''Gerry Brownlee [the Minister of Transport] says we haven't got any problems with vehicle failure at the moment. That is because we have the inspections every six months. If that changes, the failure rate is going to go up,'' he said.
VTNZ general manager Greg O'Connor said the changes would have a negative impact on the business but the decision to implement them in two stages would make the transition smoother.
The changes would cause the market to fall by an estimated 30% and there was a likelihood of redundancies within the company, he said.
However, VTNZ had made a commitment not to close any stations within the next year, Mr O'Connor said.
A Ministry of Transport spokesman said the reduction in inspection frequency that could lead to a reduction in roles over time.
''The industry will need to adjust its business models which could be by closing sites, merging businesses, or offering new services to customers to offset lost revenue,'' he said.
''We anticipate that competition between inspection services would help to control the cost of warrant of fitness inspections.''
Modern vehicles were of a high standard and did not need to be checked so often, avoiding unnecessary costs, he said.
Motor Trade Association (MTA) marketing and communications general manager Ian Stronach said the MTA had ''distinct reservations'' about the changes which would cost an estimated 2000 jobs nationwide. It had 27 Dunedin members providing inspections.
- by Jonathan Chilton-Towle
