by Gareth Hughes
The New Zealand Transport Agency is currently consulting on whether or not they should raise the fees to get a drivers license. NZTA say that fees haven’t been increased since 2001 and the cost of fees is nowhere near covering the administrative costs of providing a license.
Like lots of people, when I turned 15 the first thing I did was go and get my license (once I got it, the first place I went was the McDonald’s drive through – how things change!) It was a bit of a ‘life moment,’ so I’m in two minds how raising the fees will affect young people.
On one side it’s going to make driving more expensive and will hit young drivers especially hard. It wasn’t that long ago that I was getting by off the minimal wages of my typical young-persons’ supermarket job. GST rises, a pitiful raise in the minimum wage and the simple fact there aren’t that many jobs out there, are hitting young people hard.
However I think it’s fair to raise the cost so that it reflects the real costs of providing a license. We’re still lucky—licenses in places like Germany can cost $NZ 3800. One of the consequences of raising the fee might mean people will switch to other more sustainable options but only if they are affordable and accessible.
I’m working hard to address the rising costs of mobility for young people and concerned at the same time as this review, they’re also running another review that will likely lead to massive increases in public transport fares. Even though the review hasn’t been completed, some councils, such as Hamilton and Whangarei, have already begun raising fares and cutting services in anticipation. That means it will be harder and more expensive than ever for our young people to get around, especially those under the age of 18.
What do you think? Raising fees: good, bad? If they do raise the fees should the Government balance out the fact that they’re making it harder for young people to get drivers licenses and take steps to make it easier for them to get around by public transport and cycling?
Published in Environment & Resource Management by Gareth Hughes on Fri, February 19th, 2010
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on the trolls and those who are unable to keep on topic
yah. Provide your reasons please. One would think...
There always seem to be jobs for young people who get their restricted and full ie, pizza delivery and the like, I wouldn’t think raising the price could have too much impact on Urban centre Young people anyway. And as you said more young people may turn to public transport which is generally good as it could leads to an increase in nationwide funding for regional council transport services like TranzRail which the nation bought back. It will be rural young people that are going to be affected by any significant price increase
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We should not be subsidising people to use an unsustainable transport mode. We should be putting taxpayers money into providing the sustainable alternatives – better walking and cycling facilities, public transport, and the ability to take bikes on public transport so they can be combined. And if we do that, then young people and others with low incomes will be far better off, as they won’t have to waste so much money on cars, petrol, parking, insurance and all the other costs that drain the pockets of those without access to good public transport.
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You never know when you might need to drive, particularly in our society which is still so car-oriented. We don’t want to discourage people from being capable to drive – which we prove through licensing – just from driving unnecessarily.
It seems fair enough to cover the cost of licensing, although perhaps a case could be made that high prices deter people from bothering with a license and thus with learning to drive to a suitable standard. I definitely oppose a ‘penalty’ type fee. Save that for the car registration or (better) petrol taxes.
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It’s a sticky one, Gareth.
I grew up in rural communities, too, although my driver’s licence came to me when I was living in a provincial city. I came to Wellington without a car, and used public transport or walked, for the first 5 years I lived here.
I’ve recently gone back to public transport, due to high costs of petrol, rego, and maintenance that I couldn’t afford, when I was propitiously offered an opportunity to sell while the vehicle still had full WOF and rego.
I couldn’t have done that if I was living in a provincial city, as our public transport in Wellington is far better than anywhere I lived as a child.
It’s not just young people who will have trouble covering transport costs – elderly single/widowed women, and sole parents of any gender, will also struggle due to the limits of fixed incomes. As you say, on top of GST hikes, this could be the proverbial last straw for some sectors of society.
I do have friends I’ve called on for short-term emergency transport assistance, like moving flats or needing medical help, but generally it’s possible to do without a car if you plan carefully.
Most people don’t even think about how this would work, because they are affluent enough not to need to – but the recession has made the topic more accessible to those who once wouldn’t ever have considered it neccessary to use public transport, or reduce vehicle ownership.
As the ACC rally a few days ago showed, many more ordinary family people are riding motorbikes to commute, and leaving the car in the garage until weekends. That’s another side-effect outcome from raising the registration or licence fees – people will down-shift to cheaper-to-run options.
Stephen may have a good point – maybe it will spur more people to ride bycycles – I certainly did for a year after I went ‘carless’. I’ve had to give up the bike as well, due to illness, but I certainly gave inner-city cycling a good thrash while I had the chance.
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Since most people get driving licences, and pretty much everyone else benefits at times from friends or relatives having driving licences, there is a case to be made that this is a common good, so the question is then what is the fairest way of paying for it. Increasing the cost of getting a licence hits the young poor most – the ones most likely to need a job for which a driver’s licence is required. Decreasing car use is not best achieved by increasing the cost of getting a car licence – better is to increase petrol prices.
Therefore pay for the cost of licence processing from petrol taxes and Road User Charges, not from increasing the licence fee.
Trevor.
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The Transport Agency could raise more revenue if a way could be found to ensure that all vehicles had current registration and WOF’s ALL THE TIME.
I estimate that 10% of vehicles on the road today and everyday do not comply. That also means the these vehicles are uninsured.
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I agree gengi. Another reason to load all the charges onto fuel. Fuel taxes are harder to evade.
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I don’t actually agree that having everyone out there with a licence is good for society. I don’t have one, because I have a medical condition that means that some days I would not be a good driver. But plenty of people with my level of impairment (and far worse) do have licences and do drive, and take the risk that they will kill other people. On top of those situations, people who have licences and don’t drive frequently are often not very safe either. I have frequent problems with people who deliver their kids to the local school by car, and then manage to run over the plantings next to the driveway because they can’t drive straight. As I said to one parent who was commenting on the poor driving of other parents, they shouldn’t be driving near small children if they can’t tell where the edge of their car is. We need to treat driving a car as a serious activity that needs commitment, constant training, and constant practice.
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PaulaW – fair comment. However I wasn’t suggesting that everyone should have driving licences – just that those who do provide a service for those who don’t, even if it isn’t very often.
Trevor.
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