Car owners face cost of theft device

A plan to reduce car thefts has sparked fears of higher prices.

The Government said yesterday that it would make it compulsory to fit an immobiliser and 'whole of vehicle marking' - microdots of vehicle identification numbers - on new and imported vehicles less than 15 years old.

Justice Minister Phil Goff said the programme, coming within 18 months, aimed to slash the number of cars stolen, about 22,000 a year, and the $110 million paid out in insurance claims.

But some industry groups say the cost of the security could outweigh the benefit.

The Government says immobilisers should cost $300 a car and markings $100. This would be met by the importer, who would pass it on to the consumer. Around 150,000 cars are expected to be fitted each year.

But industry groups say the cost could be greater.

Motor Industry Association chief executive Perry Kerr said the association was behind making immobilisers compulsory but was concerned about the vehicle markings.

"We are sceptical of the costs that have gone into the Cabinet paper, which set it at about $100 a vehicle. At the moment the retail price of data dotting vehicles ranges from $350 to $500 per car.

"It is a huge logistical exercise to put markings on 200,000 cars a year and we have serious reservations about it. We believe they have gone too far."

Automobile Association spokesman George Fairbairn said if the Government's $400 figure was correct and 150,000 cars were fitted each year it would cost $60 million a year. And there had been a suggestion that the $400 figure was an underestimate.

"If the figure is more motorists could end up paying more than $110 million a year extra for new cars in order to prevent a $110 million problem which largely affects older cars."

Independent Motor Vehicle Dealers Association spokesman Malcolm Yorston said the measures should not be compulsory, but should be market driven.

However, the measures have been praised by the police, insurance industry and some car companies.

The insurance industry says if the plan succeeds car insurance will be cheaper.

Insurance Council chief executive Christopher Ryan said the council strongly supported the Government's move.

"If you reduce the cost of thefts, and this initiative is almost certain to do that, then long term it is likely it will result in greater efficiencies for the insurance companies."

Mr Goff said immobilisers were internationally recognised as the best way to reduce opportunist car theft.

In Western Australia car theft fell by 34 per between 1999 and 2001 during which time the number of vehicles fitted with immobilisers rose from 45 per cent to 70 per cent.

Whole of vehicle marking is designed to reduce the professional theft of cars. Subaru New Zealand said since it began using the vehicle marking on new models in March 2003 there had been no thefts of new cars.

Mr Goff said within 10 years up to 95 per cent of the vehicle fleet would be protected.

"It's the most effective way of getting a dramatic decrease in vehicle theft numbers," he said.

Other initiatives include membership of Australia's car theft database, changes to make it harder for criminals to use deregistered vehicle information and a scheme to recognise parking facilities with good levels of security.

Stopping thefts

What is an immobiliser?

An immobiliser stops hotwiring by interrupting the supply of power required to start an engine and can only be overridden by the correct electronic signal.

What is whole of vehicle marking?

Whole of vehicle marking involves placing the vehicle identification number on all parts of the car by applying several thousand microdots that are only visible through an ultraviolet viewer and are difficult to remove.