Top earners owe $287m in fines
Nearly a third of people with overdue fines are white-collar workers, who typically take more than three years to pay despite $70,000 incomes.
A report prepared for Courts Minister Margaret Wilson and obtained by the Sunday Star-Times under the Official Information Act, has prompted plans for a crack down on fine dodging white-collar workers.
The study, by Wellington market research company Datamine, shows this group makes up 30% of fines defaulters and accounts for 10% of the total overdue fines bill. New Zealanders owe $420 million in fines; $287m of that is overdue.
The typical white-collar defaulter is male, 38, working in the property, business, services or education sector, has a post-graduate degree and a household income of $70,000.
He will have an average of two overdue fines, owes $401 and takes 42 months to pay.
National courts spokesman Tony Ryall said fines, mainly traffic infringements, were being ignored. This highlighted a lack of effort by the Department for Courts, he said. "These people who are perfectly able to pay and if they were pursued they would.
"The average fine if $401 and the department for Courts is obviously saying: well, how much are we going to spend in order to recover these debts? But that is not the principle of the law."
General manager of collections Jenni Norton is promising a stronger line against white-collar fines defaulters. "We will definitely be targeting this group more strongly," she said.
"These people will be real fine evaders rather than people who are just unable to pay their fines off quickly."
Courts officials have recently begun tapping into the Inland Revenue data base to obtain addresses and phone number to pursue fines defaulters and the department is planning an advertising campaign to shame them into paying.
But another group of defaulters, young, low paid drivers, will be the first target of a Courts Department publicity campaign. This group makes up 24% of all fines defaulters but accounts for 63% of the money owed in overdue fines.
The typical person in this group is a 27-year-old male. He is European and lives alone. He has a car and a trade but few qualifications and a low income.
He has an average of eight overdue fines, owes $2431 and takes 20 months to pay.
Ryall said the Courts Department had also been too soft on this group.
"There are only two things they are worried about and that is their car and their pay packet and unless you're going to strongly pursue either of those you are not going to focus these people"
"Getting a phone call from a call centre in Wellington just isn't going to have any impact."
Norton said an advertising campaign across print, radio and internet media would be launched this year, conveying the message that the earlier they paid up, the less the cost and the hassle.
"The reason why we have had this [study] done is so that we can then start doing a targeted campaign."
"Our first tranch of it is aimed at the young drivers because they make up such a big percentage of it and then we will move on from there."
The Courts Department can already take money from wages, benefits and bank accounts and can seize property and assets to recover money owing.
The departments database now includes nearly 450,000 fines defaulters.
Many of the fines are traffic related, with $53.3m owed on 246,317 fines for driving an unwarranted car and $44.5m owed on 193,329 fines for driving without a valid license.
FINES DEFAULTERS
Young Low Paid Drivers (24%)
- Account for 63% of overdue fines
- Average age 27 and 77% are male
- European, working, in one-person household, few qualifications, own a car and work in a trade with a low income
- Typical offender has eight overdue fines, owes $2431, and takes 20 months to repay
Maori and Pacific families on low incomes (22%)
- Account for 17% of overdue fines
- Average age 34 and 65% are male
- Unemployed or on a benefit, unqualified, no car, live in a two family household with household income of $10,000 to $30,000
- Typical offender has two overdue fines, owes $672 and takes 34 months to repay
Middle New Zealanders (24%)
- Account for 10% of overdue fines
- Average age of 38 and 64% are male
- Single parents, students or sickness beneficiaries, non-professional household income of $15,000 to 30,000
- Typical offender has two overdue fines, owes $389, and takes 34 months to repay.
White Collar Workers (30%)
- Account for 10% of overdue fines
- Average age 38 and 70% are male
- Work in property, business, services or education, have post-graduate degrees, household income of $70,000
- Typical offender has two overdue fines, owes $401, and takes 42 months to repay