This Bill amends the Public Finance Act 1989 to increase from 10% to 14% the percentage the Crown retains (as fines collection costs) from amounts of fines recovered for offences prosecuted by or on behalf of local authorities or other organisations. Those fines include fines imposed for infringement offences.

The increase to 14% is based on the comparable proportion charged by private debt collectors. The recovery rate will remain competitive while still helping to cover the costs of collection. The increase to the percentage reflects that the costs of collection have increased over time and it will help recover Crown costs. (Those factors also support related increases, by secondary legislation, to collection fees in line with the New Zealand Consumers Price Index.) The increase is justified because it is appropriate that some costs are recovered from the local authorities and other organisations that benefit from using the Crown’s collection services. Increasing the percentage of fines retained by the Crown will (with related increases to collection fees) better ensure that the collection and enforcement of court fines remain fiscally sustainable.

Departmental disclosure statement

The Ministry of Justice is required to prepare a disclosure statement to assist with the scrutiny of this Bill. The disclosure statement provides access to information about the policy development of the Bill and identifies any significant or unusual legislative features of the Bill.

A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=bill&subtype=government&year=2024&no=51

Regulatory impact statement

The Ministry of Justice produced a regulatory impact statement on 11 April 2024 to help inform the main policy decisions taken by the Government relating to the contents of this Bill.

A copy of this regulatory impact statement can be found at—

Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 ensures that the Bill, if enacted, comes into force on 1 July 2024.

Clause 3 provides that the Bill amends the Public Finance Act 1989.

Increasing percentage Crown retains from amounts of fines recovered for offences prosecuted by local authorities or other organisations

Clause 4 amends section 73, which is about payment of fines to local authorities and specified other organisations that conduct prosecutions. The amendment increases from 10% to 14% the amount that the Crown deducts and retains under section 73(2) from recovered amounts—

of fines imposed for offences prosecuted by or on behalf of local authorities or other organisations; and
that are not any money awarded by a court in respect of any loss or damage recovered as a fine.

Section 73 is subject to exceptions in provisions of other Acts. This Bill does not amend those exceptions in provisions of other Acts.

Transitional and savings provisions

Clause 5 inserts new Part 4 of Schedule 1, which contains new clause 11. New clause 11 ensures that the amendment that the Bill makes to section 73(2) on 1 July 2024 applies only to an amount of a fine recovered—

on or after 1 July 2024; and
in respect of a fine imposed on or after 1 July 2024.

Hon Paul Goldsmith

Public Finance (Fines Collection Costs— Budget Measures) Amendment Bill

Government Bill

51—1

	Explanatory note
1	Title
2	Commencement
3	Principal Act
	Increasing percentage Crown retains from amounts of fines recovered for offences prosecuted by local authorities or other organisations
4	Section 73 amended (Payment of fines to local authorities and other organisations that conduct prosecutions)
	Transitional and savings provisions
5	Schedule 1 amended
	Schedule New Part 4 inserted into Schedule 1

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Public Finance (Fines Collection Costs—Budget Measures) Amendment Act 2024.

2 Commencement

This Act comes into force on 1 July 2024.

3 Principal Act

This Act amends the Public Finance Act 1989.

Increasing percentage Crown retains from amounts of fines recovered for offences prosecuted by local authorities or other organisations

4 Section 73 amended (Payment of fines to local authorities and other organisations that conduct prosecutions)

In section 73(2), replace “10%” with “14%”.

Transitional and savings provisions

5 Schedule 1 amended

In Schedule 1,—

(a)

insert the Part set out in the Schedule of this Act as the last Part; and

(b)

make all necessary consequential amendments.

Schedule New Part 4 inserted into Schedule 1

s 5

Part 4 Provisions relating to Public Finance (Fines Collection Costs—Budget Measures) Amendment Act 2024

11 Application of amendment about deductions from fines

Amendment applies only for fines imposed on or after 1 July 2024

(1)

The amendment applies only to an amount of a fine recovered—

(a)

on or after 1 July 2024; and

(b)

in respect of a fine imposed on or after 1 July 2024.

Old section continues to apply for fines imposed before 1 July 2024

(2)

The old section continues to apply to an amount of a fine recovered—

(a)

on or after 1 July 2024; and

(b)

in respect of a fine imposed before 1 July 2024.

Definitions

(3)

In this clause,—

amendment means the amendment made to section 73(2) on 1 July 2024 by the amendment Act

amendment Act means the Public Finance (Fines Collection Costs—Budget Measures) Amendment Act 2024

amount of a fine includes, without limitation, an instalment—

(a)

of the fine; and

(b)

paid under a court order, or an arrangement, allowing payment to be made by instalments

old section means section 73(2) as in force immediately before the amendment was made on 1 July 2024 by the amendment Act.

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Public Finance (Fines Collection Costs— Budget Measures) Amendment Bill