Gisborne District Council's commercial arm has sold its vehicle testing station, handing the keys over to Vehicle Testing NZ which is in the process of setting up shop.
Photo: LDR / Gisborne Herald / Liam Clayton
In November, it was reported Gisborne Holdings Ltd (GHL) would likely sell Gisborne Vehicle Testing but the news wasn't confirmed until this month.
GHL chairman David Mullooly said the final outcome was the culmination of several contributing factors.
Those included a nationwide lack of inspectors, an inability to attract and train new inspectors because of border closures, declining revenue streams due to people purchasing road user charges online and customers moving to more modern vehicles which required less servicing.
"Ultimately, it was the lack of trained inspectors that forced our hand," Mullooly said.
Last September, the station made headlines for struggling to keep up with demand. One driver described the process of trying to get a warrant as "bedlam", saying she paid for a WoF before 9.30am but didn't drive away until almost 1pm.
At the time, GHL commercial operations general manager Jeremy Raymond put the delays down to high demand following closure during alert level 4 of Covid-19.
Mullooly told Local Democracy Reporting those delays did not lead to the sale of the business but reinforced the final decision.
"GHL had been looking at various options and staffing models for the past three years," Mullooly said.
Of the six employees who remained at the time of sale, one was redeployed in GHL, one chose another option and four were employed by VTNZ.
Photo: LDR / Gisborne Herald / Liam Clayton
Approval to operate a vehicle testing centre was originally obtained by the Gisborne Borough Council in 1954.
In 2016, the station was transferred to GHL's portfolio as part of a commercial package transfer.
In 2020, there were indications the business was struggling when Raymond said increased scrutiny from NZTA on inspectors and inspecting agencies was welcome but had impacted on finding new staff.
That year, GHL tried to incentivise people to use the business by offering a drop-off option.
At the time of sale to VTNZ, the station made up 1 percent of GHL's fixed assets.
GHL was established in 1998, with the assignment of running the council's commercial investments.
It owns Tauwhareparae Farms, Waikanae Beach Top 10 Holiday Park and Wash'nGo car wash.
According to its website, it has net assets of $123 million.
VTNZ will be closing its Childers Rd site, transferring its operation to the new site.
A VTNZ spokesperson said renovations are currently underway to improve the testing equipment, customer reception and seating areas.
The new branch is expected to open in March.
Local Democracy Reporting is a public interest news service supported by RNZ, the News Publishers' Association and NZ on Air.