Transport Agency halts $6m in funding to police until breath test targets met

The New Zealand Transport Agency has halted $6m worth of funding to police until it's satisfied police have met their breath test targets.

Transport Minister Chris Bishop says it's a "prudent decision" by NZTA which he welcomes, calling the breath testing issue "very concerning".

RNZ earlier revealed about 130 staff were under investigation throughout the country after 30,000 alcohol breath tests were "falsely or erroneously recorded".

Following an Official Information Act request from RNZ, police released 150-pages of information in relation to the breath screening tests investigation.

On October 7, after an initial request for information from police, NZTA sent several follow-up questions to police including details as to other avenues police were investigating to detect further irregular breath tests outside of the existing algorithm.

• Do you know more? Email sam.sherwood@rnz.co.nz

The 30,000 breath tests related to an algorithm that determined if a second test took place within 90 seconds of the first, whilst the distance between the two indicated a speed of more than 20 km/h.

In response, Acting Deputy Commissioner Mike Johnson said while the algorithm had "proven effective" in identifying tests conducted while the device was in motion, "there remains limitations in detecting all forms of irregular testing, including those undertaken in specific locations".

"Work remains underway to identify what, if any, options exist for removing these limitations."

Then, on 16 October, NZTA's Road Policing Investment manager Neil Macrae emailed several people including Johnson and director of road policing, Superintendent Steve Greally.

In the email Macrae referenced the government's $1.3 billion Road Policing Investment Programme (RPIP).

The programme includes increased alcohol breath tests with a target of 3.3 million roadside alcohol breath tests per year and a focus on high-risk items, with a requirement that 65 per cent of breath tests are done at high or extreme alcohol risk times.

Macrae said while NZTA recognised "current limitations" in detecting all forms of irregular testing, they supported and "encourage" police to identify what, if any, options exist for removing the limitations and to look beyond current detection methods "to ascertain the true scale of irregularities".

He said that while the police's investigation into irregularities continued, NZTA's reporting was "on hold".

"NZTA's reporting includes the RPIP Quarterly report to Minister(s), assessment of RPIP Q1 (2025/26) delivery dependant funding and the Annual Assurance report to the NZTA Board that was due to be presented 23 October 2025.

"Delaying the assurance report to the board also delays the approval process for variations to the current programme including the 'open roads speed measure'."

Macrae said the decision to delay the assurance report was taken at chief executive level. NZTA would also meet with Audit NZ to discuss implications on their public statutory reporting.

In response to questions from RNZ, an NZTA spokesperson said they had requested police provide assurance that delivery numbers for breath screening tests and the wider road policing activity measures for the 2024/25 financial year were correct.

"We are working with police to verify the final results. We paused our usual end-of-year reporting to the NZTA Board and the Minister of Transport until we are satisfied that the final results are a full and accurate record of police delivery during the 2024/25 financial year."

Each year, $24 million of funding from the National Land Transport Fund (NLTF) for the RPIP is dependent on the successful delivery of all speed and impairment activities to agreed specified annual levels, known as delivery dependent funding (DDF).

"Delivery against these measures is assessed on a quarterly basis, and a pro-rated amount of DDF is available to be authorised to spend ($6 million per quarter).

"Until the current issue with reporting on breath testing is resolved, NZTA has paused assessment of the $6m in delivery dependent funding for the first quarter of the 2025/26 financial year."

The spokesperson said any funding from a quarter where DDF was not met remained available for subsequent authorisation in the same financial year, if targets are met.

"Any funding not authorised to be spent at the end of the financial year is required to be returned to the NLTF."

The bulk of funding for road policing activity (of $103 million per quarter) continued to be available to police, the spokesperson said.

In a statement to RNZ, Bishop said "this is a prudent decision by NZTA and I welcome it. The breath testing issue is very concerning and it is important it is resolved."

NZTA warns of 'clear breach' of no surprises expectation

On 25 September, more than a month after the tests were identified, NZTA's group general manager Richard Forgan wrote to Johnson and said they were notified of the matter on 22 September.

Forgan said that given NZTA's role as investor and providing monitoring and assurance in relation to the Road Policing Investment Programme (RPIP) the integrity and accuracy of the delivery against the measures was "paramount".

Forgan instructed the Road Policing Investment team in NZTA to look further into the data integrity issue with "urgency" and requested a series of information from police.

Forgan also took issue with the length of time it took NZTA to be notified.

"In addition to the issue regarding the data irregularity, the memorandum of understanding between us clearly states a 'no surprises' expectation.

"The fact this issue was first discovered in late August, the Minister of Police was briefed on 12 September and NZTA only informed via the Minister of Transport's office on 22 September is a clear breach of this expectation. I reinforce NZTA's expectation that we are to be advised of such matters early."