Government to boost effectiveness of fine collection agency

The Queensland Government will move to identify new, innovative ways of ensuring fine defaulters repay their debts to society.

Attorney-General Paul Lucas today announced consultant PricewaterhouseCoopers (PwC) would independently assess the operations of Queensland's State Penalties Enforcement Registry (SPER) with a view to improving its already-impressive record of recovering outstanding debts.

Mr Lucas said PwC had won the $130,000 tender following a competitive selection process and would provide a report to Government mid year.

"The PwC review will identify whether SPER can introduce any further measures or better practices to improve on its already impressive record of collecting outstanding fines," Mr Lucas said.

"Some of the things we want them to look at is what happens in the private sector.

"There is a difference between someone who gets a parking fine and inadvertently hasn't paid it, to someone who parks their car delibera tely every day in the streets and just thumbs their nose at the law.

"There's also a difference between someone who has made one mistake and gets a small fine to someone who seriously injures a person and has a substantial criminal compensation to pay.

"Ultimately, this money is the property of the people of the state. We've collected $1.152 billion since SPER's inception and that has gone into our teachers, schools and our hospitals and nurses.

"The alternative is to put people in prison at $187 per day, which actually costs or takes money away from the value of the state.

"We want to collect as much as we can fairly and equitably, but even though SPER collects about $12 for every $1 it spends, we don't want to throw good money after bad.

"Just like a business when it has debts it has to draw the line somewhere, but if it's reasonably collectible from people we will do that.

"The State Government needs to look at this as a bus iness as well, with compassion, but with responsibility.

SPER is highly effective at recovering outstanding debts, collecting a record $166.5 million in 2009-10. This was followed by the collection of more than $158 million last financial year (2010-11), despite debtors receiving a three month deferral on SPER to assist Queenslanders to recover from the natural disasters.

"However, like all government bodies, its operations and performance require regular scrutiny to see if there are better ways of doing business," Mr Lucas said.

"I have asked PwC to identify 'best practices' in debt collection, assess how SPER's operations and performance compare and recommend how this can be improved to exceed those best practice standards.

"PwC will look at collection mechanisms in other states and countries such as New Zealand.

"For example, in New Zealand if you have a significant debt owing as a result of a court fine you are not allowed to leave the country until you have organised to pay it off.

"Currently, the Federal Government does not even allow limited garnishing of social security benefits even though someone on a very low income, the working poor, could have a similar amount garnished for a fine.

"They will also have a look at the quality of information councils and agencies provide to SPER prior to them collecting a debt.

"One can understand that there it makes SPER's job significantly more difficult if it's given incomplete or inadequate information in the first place.

Mr Lucas said the State Government had already introduced a number of options to strengthen enforcement options available to SPER.

"We have introduced tough measures such as driver licence suspension, wheel clamping and seizure and sale of property and assets as a trial in the Brisbane area," Mr Lucas said.

"The review will look at whether there are any other ways that we can improve the debt recovery process."

SPER's collections in January were $17.1 million - a record for any January and the second highest month ever.

More than $116 million has already been collected during the current financial year.

Key stakeholders including the judiciary, State Government agencies, other issuing authorities such as local government and similar debt collection agencies in other jurisdictions will be consulted as part of the review.

Attorney-General, Minister for Local Government and Special Minister of State
The Honourable Paul Lucas
01/02/2012
Government to boost effectiveness of fine collection agency

Permanent Link: Government to boost effectiveness of fine collection agency
Publish Date: 01 Feb 12

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