KEY POINTS:
Third-party vehicle insurance could soon become compulsory for all drivers as the Government considers lowering the financial boom on dangerous street racers.
The Cabinet yesterday gave the go-ahead for a public discussion document to be written on making insurance compulsory.
Transport Safety Minister Harry Duynhoven is confident there is now enough political will to push for a law change that could make it too costly for youngsters to keep highly modified vehicles on the streets.
This is because insurers will insist on hefty premiums before being prepared to accept the risk of paying for damage caused to other vehicles by drivers of such cars.
The Insurance Council, which has traditionally opposed the measure, is now indicating support if the Government provides tools to make it work.
Chief executive Chris Ryan said last night that the Government would have to use the force of law to ensure car-buyers kept up their premium payments.
The idea of compulsion was rejected by parliamentary select committees in the 1980s and 1990s, partly because overseas evidence indicated it led to more unregistered cars being on the road as people avoided the extra costs of insurance.
The decision to issue a discussion document follows a proposal Mr Duynhoven presented to the Cabinet stemming from the death of 20-year-old Scott Finn in May in an illegal car race in Mt Maunganui.
And on Friday night, a 19-year-old street-racing enthusiast, Cain John Longstaff, was killed in New Plymouth when a car hit him at a gathering of young people.
Mr Duynhoven said he believed there was now a public appetite and political will for compulsory third-party insurance to become reality.
Existing third-party compulsory insurance was cheap, he said - about $100 to $150 a year for most drivers with clean records.
But since about a quarter of NZ's 3.2 million vehicles did not have any insurance, "there's a hell of a lot of people for whom the rest of us are paying higher premiums".
Mr Duynhoven has long advocated third-party insurance as a way to deal with boy-racers, saying it was an incentive to drive safely because blemishes to driving records would drive premiums up.
It could also keep young people away from powerful cars because of the higher premiums involved.
National Party transport spokesman Maurice Williamson said he would "keep an open mind" but overseas experience showed it did nothing to keep hoons off the road.
"The trouble is we pass laws and they force 95 per cent of law-abiding citizens to comply and pay the compliance costs. But the bad eggs don't even know we've passed the law, let alone comply with it."
Motor Trade Association spokesman Andy Cuming said the Cabinet's decision was "excellent news".
"It will inject an element of compulsory responsibility."
His reaction followed an announcement by the association of an education campaign it is preparing with racing ace Greg Murphy to improve young drivers' behaviour.
Murphy yesterday hit out at the growing culture of modified high-powered cars in the hands of "low-skilled reckless show-offs".
He said anyone driving such a vehicle should be at least 18.
Automobile Association spokesman Mike Noone said he remained unconvinced that compulsory insurance would restrict access by young racers to vehicles without imposing an unnecessary burden on the rest of society.
SAFER ROADS
* Compulsory third-party insurance is expected to improve road safety by making it more expensive for boy-racers to use high-powered cars.
* The insurance industry wants enforcement measures to ensure car owners cannot escape payments.
* Existing premiums are about $100 to $150 a year.
