File image. Photo: Supplied / NZ Police
Increasing the number of cars impounded by police could create a problem for tow companies, the Motor Trade Association says.
A new law would give police more power to impound cars if they have been involved in a chase.
The association, which represents nearly 4000 auto businesses, estimates the law would increase the amount of impound requests by 30 percent.
Tow operators were already storing dozens of low-value vehicles that never got picked up and were difficult to sell, the MTA said.
Some companies were owed hundreds of thousands of dollars in unpaid fees, and MTA was calling for police to better enforce them.
There also needed to be appropriate enforcement of fees owed by car owners, the association said.
"Businesses shouldn't out of pocket, either because of criminals or government policy," MTA spokesman Larry Fallowfield said
"MTA has members owed hundreds of thousands of dollars for unpaid impound fees for collection, storage, and disposal."
Impound fees had not been reviewed since 1999, MTA said, and it was calling for the Land Transport (Storage and Towage Fees for Impounded Vehicles) Regulations 1999 to be updated.
MTA said it had been told by the Ministry of Transport that government officials would be consulting with it on the law change.