Full driving licence to go up by $18

The cost of getting a driver's licence will go up under Government plans.

Transport Minister Steven Joyce announced the proposed changes yesterday, at the same time accusing the previous government of poor financial oversight which will result in a $21.78 million shortfall in the driver licensing account by June.

A full licence will go up by more than $18 under the plan.

The New Zealand Transport Authority fees had not been reviewed since 2001, but inflation had risen 21 per cent since then.

Much of the current deficit would be absorbed but the overrun was increasing at a rate of about $650,000 a month.

"The gap between the fees received and the costs incurred has grown markedly over recent years and this imbalance must be addressed to ensure the long-term financial sustainability of our driver licensing system," Mr Joyce said. "This can't continue to be swept under the rug as it has in the past."

Labour Party transport spokesman Darren Hughes said it wasn't clear how the minister had calculated the shortfall.

However, coming so close on the heels of the ACC increases to motorists many would have trouble swallowing the cost.

It would whack younger drivers hardest and could stop them from moving through to their full licence, he said.

AA spokesman Mike Noon agreed. "There are thousands of drivers sitting on their restricted licence. This may be quite a disincentive to actually go out and sit their tests."

However, the AA liked a new provision where disqualified drivers would have to pay to retrieve their licences.

CHANGES

18 service fees are reduced, 23 increased. Fees for drivers aged over 75 remain unchanged. A new fee for licence reinstatement after disqualification

Licence renewal
Now - $44.30
Proposed - $43

Learner licence
Now - $79
Proposed - $91.90

Restricted
Now - $88.20
Proposed - $105.80

Full
Now - $115.10
Proposed - $133.20