Transport Minister Steven Joyce scrapped a planned crackdown on professional car thieves despite the strong support from the Justice Ministry and police to introduce the compulsory technology.
Insurance claims top $100 million each year and more than 6500 stolen cars are never found, providing huge profits for gangs who steal the cars to order for parts or "rebirth" into apparently legitimate vehicles.
Mr Joyce last year dumped a plan by the previous Labour Government to introduce compulsory Whole Of Vehicle Marking for car imports, technology that identifies stolen cars and parts by spraying microdots with a unique 17-digit code over the car.
With up to 10,000 microdots, the WOVM technology makes it nearly impossible for professional thieves to alter the identity of a car, whether dismantled for parts or still intact.
Cabinet documents released under the Official Information Act show Transport Ministry officials were opposed to mandatory WOVM because of the cost - $88 for each imported car. The briefing paper from January 2009 recommended backtracking on the proposed regulation because the benefits were likely to be outweighed by the costs.
To break even, WOVM would have to reduce unrecovered stolen cars by 50 per cent.
Transport Ministry officials also pointed out that most new imported cars now have immobilising technology - which prevent the car from starting unless the correct key is used - where WOVM "is simply an after-the-fact forensic tool".
The micro-dot technology could still be bought voluntarily by owners of at-risk cars, the papers said.
However, the January papers revealed the Transport Ministry had not shared the briefing with the Justice Ministry or the police.
"These two departments strongly support a mandatory WOVM policy, as it will assist some investigations into professional vehicle theft."
A second briefing paper in April 2009 showed Mr Joyce had decided to stop the compulsory use of the technology because of the cost, despite the Justice Ministry and police supporting the policy. The document noted that the Justice Ministry maintained the view that WOVM was an effective crime-fighting tool and that technology should achieve a 50 per cent drop in professional car thefts, the benchmark for the cost-benefit analysis to break even.
The ministry also noted that almost all crime prevention policy is made from a cost-neutral perspective, "appreciating the many benefits that are not easily measured in a simple financial cost-benefit analysis.
"For example, crime prevention benefits society by reducing fear and improving citizens' sense of wellbeing and quality of life. It also improves confidence in government, police and the wider purpose of justice," the briefing paper said.
According to the documents, police supported the ministry's position.
"However, in the current economic climate, the Justice Ministry and police agree that this regulatory provision may impose too large an impact on industry and consumers. They therefore support discontinuing this initiative at this time."
Senior detectives have told the Weekend Herald that although immobilisers deter opportunistic car thieves, only WOVM would stop crime syndicates looking to steal high-end, expensive models to order.
"Professional burglars are not stupid. If they can't overcome the immobiliser - which most can - they will break into your house and steal the keys while you sleep."
Police Association president Greg O'Connor said that over his long police career, car theft had never received the attention it deserved from police, which he described as frustrating.
He said vehicle-theft investigations would have become much easier if mandatory WOVM had been introduced.
Technology to combat car gangs 'too costly'
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