Five Million Voices

Should the Crown increase the share it retains for fines collection costs from 10% to 14% when courts recover fines on behalf of local authorities and other organisations?

The bill amends section 73 of the Public Finance Act 1989 to raise the proportion of recovered fines the Crown keeps as collection costs from 10% to 14% for fines prosecuted by or on behalf of local authorities and other organisations.

⚡ Taken under urgency

Parliament advanced this bill under urgency (committee of whole house, first reading, second reading, third reading) — moving it through faster than usual, with less time than normal for public submissions.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued the increase reflects the rising costs of collecting and enforcing fines, which the Crown incurs on behalf of local authorities and other organisations.
  • Supporters said the 14 percent retention is comparable to rates charged by private debt collectors while remaining competitive, and that those benefiting from the collection service should cover a reasonable share of the costs.
  • Supporters argued the additional revenue contributes to the Government's goal of balanced books and supports investment in law and order.
Why oppose it
  • Opponents argued the change is effectively a levy or tax on local bodies and other entities at a time when councils face funding pressures, with no analysis showing the charge relates to actual costs.
  • Opponents said fines and the associated costs fall hardest on low-income people, with the regulatory impact statement indicating Māori, Pasifika, and those least able to pay on time would be disproportionately affected.
  • Opponents argued the measure was not campaigned on, was passed under urgency for a relatively small amount of revenue, and lacked adequate consultation with affected local authorities.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

The Public Finance (Fines Collection Costs—Budget Measures) Amendment Bill amends the Public Finance Act 1989 to change how the cost of collecting fines is shared. When the courts collect fines that are actually owed to other bodies, such as local councils and other organisations (for example parking or transport infringements), the Crown keeps a slice of the money to cover the cost of running the collection service. This bill lifts the Crown's retained share from 10 percent to 14 percent, so a slightly larger portion of each recovered fine stays with central government.

This is a Government bill introduced as a Budget 2024 revenue measure. Supporters argue the higher share better reflects the real cost of operating the fines-collection system on behalf of others and makes a modest contribution to the Crown's books. Critics counter that it simply reduces the money councils and other organisations receive back from fines they are owed, amounting to a cost shift from central government onto local bodies and the groups relying on that revenue.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Public Finance (Fines Collection Costs—Budget Measures) Amendment Bill · Third Reading, 30 May 2024
Parliament voted 68–49 — it passed.