Although MOT charges increased because of ongoing problems with the PFI contract, they still compare favourably with Great Britain

2.19  Because DVTA has operated as a Trading Fund3 since April 1996, it is required to recover the full costs of its activities from the income that it generates. Consequently, the costs of any major procurement impact on the fees charged to customers.

2.20  In its full business case for the PFI project, completed in March 2000, DVTA estimated that fees would increase to £23 for a car/light goods vehicle test and £35.63 for a HGV test. Since the introduction of the new equipment, fees have increased at a greater rate than DVTA had envisaged and, by April 2003, the cost of a car/light goods test had risen to £28, and the average fee charged for a HGV test was £45.

Figure 4: Cost of DVTA Vehicle Tests

Source: DVTA

*  MOT2 tests include items not tested with the previous equipment, and this is reflected in the respective fees.

2.21  The ongoing inability to achieve the required MOT2 test times has resulted in DVTA setting fees on the basis of between 21 and 24 minutes' actual labour time, instead of the 18 minutes required by the contract. Consequently, as Figure 5 below shows, customers have been paying between an additional £0.70 and £2.50 for a vehicle test (car/light goods vehicle) since the introduction of the new equipment. The total additional cost to DVTA customers between 2002-03 and 2004-05 amounts to over £3.2 million.

2.22  Before the introduction of the MOT2 equipment, vehicle test fees had traditionally been lower in Northern Ireland than in Great Britain (where tests are conducted by private garages). Despite the recent fee increases, the cost of vehicle tests in Northern Ireland continues to compare favourably with fees currently charged in Great Britain (see Figure 6).

Figure 5: Additional costs to DVTA customers for vehicle tests (car/light goods vehicle) arising from productivity problems

Source: DVTA

Figure 6: Comparative costs of MOT and HGV tests in Northern Ireland and Great Britain

Source: DVTA and Vehicle & Operator Services Agency (Great Britain)

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3.  A means of financing the trading operations of a Department or Agency, involving the use of receipts to meet outgoings.