About 1200 cars a month are towed by Auckland Transport.
About 1200 cars a month are towed by Auckland Transport.
Auckland ratepayers are subsidising the cost of towing, storing and releasing cars across the city to the tune of $15 million over five years.
Under a quirk in the law, Auckland Transport (AT) is prohibited from charging storage and release fees and is limited to charging vehicle owners a standard tow fee of $53.60 - when the average tow cost billed to AT for standard hours is $99.
In a typical month, AT tows about 1200 vehicles from clearways and bus lanes on the roads and council-owned facilities like parking buildings and parks.
AT parking boss Rick Bidgood said it has a five-year contract with Supercity Towing for $15m for all towing, storage and release costs.
Bidgood said the tow costs that can be passed on to motorists are set out in the Land Transport Act.
Since 2021, he said, AT and the New Zealand Parking Association have been looking at the true costs associated with towing vehicles and lobbying the Government to review them.
Auckland Mayor Wayne Brown says the towing issue is another example of unnecessary Government rules. Photo / Michael Craig
Mayor Wayne Brown said the towing issue is another example of where outdated and unnecessary Government rules dictate what Auckland can and cannot do.
“It is ridiculous that Auckland Transport loses at least $50 every time a vehicle is towed,” Brown says.
“I have been bringing these issues to the attention of Minister [Simeon] Brown and I’m confident he understands the issue and is considering how to improve the situation,” said Brown, who is also pushing the Government for the council to have the power to set fines.
Simeon Brown said he was concerned by the low level of regulated fees, which is creating a major issue for both councils and the Police. Fees were last updated over two decades ago and are no longer recovering costs for services, he said.
“I have commissioned a review of towage and storage fees to support greater cost recovery. This is part of a wider review of road safety and parking penalties. Proposals are currently being developed for public consultation,” the minister said.
Bidgood said AT will only tow vehicles when necessary for safety, congestion and events.
“This is also why we choose to manage abandoned vehicle cases on streets where possible to keep operating costs at a minimum,” he said.
When the Herald contacted Supercity Towing about its contract, a spokesman did not want to comment.
Bernard Orsman is an award-winning reporter who has been covering Auckland’s local politics and transport since 1998. Before that, he worked in the parliamentary press gallery for six years.
