NZTA Freezes $6 Million Police Funding Over Breath Test Errors

The New Zealand Transport Agency (NZTA) has suspended approximately $6 million in funding to the police until it can confirm that the police have met their breath test targets. Transport Minister Chris Bishop described this decision as “prudent,” highlighting the serious nature of the breath testing issue that has emerged.

An investigation has been launched into about 130 police staff across the country, following revelations that around 30,000 alcohol breath tests were either “falsely or erroneously recorded.” This issue was initially uncovered by RNZ, which prompted further scrutiny. In response to an Official Information Act request from RNZ, police released a detailed 150-page document regarding the breath screening tests investigation.

On October 7, 2025, NZTA sought additional information from the police, asking for clarification on other potential avenues being explored to detect further irregularities in breath tests. The problematic tests were linked to an algorithm that analyzed whether a second test was administered within 90 seconds of the first, with a speed indication of over 20 km/h. Acting Deputy Commissioner Mike Johnson acknowledged that while the algorithm had been effective in identifying tests conducted while the device was in motion, it had limitations in identifying irregular testing in certain locations.

In a follow-up communication on October 16, 2025, Neil Macrae, NZTA’s Road Policing Investment manager, addressed key stakeholders, including Johnson and Superintendent Steve Greally. He referred to the government’s $1.3 billion Road Policing Investment Programme (RPIP) and noted NZTA’s awareness of current limitations in detecting irregular testing. Macrae encouraged police to explore possible solutions to enhance detection methods and ascertain the full extent of the irregularities.

Due to the ongoing investigation, NZTA has paused its reporting obligations concerning the RPIP. This includes the quarterly report to the Minister of Transport and the annual assurance report to the NZTA Board, originally scheduled for presentation on October 23, 2025. The delay in these reports also impacts the approval process for variations to the existing programme, such as the “open roads speed measure.” Macrae stated that the decision to delay was taken at the chief executive level and that NZTA would confer with Audit NZ regarding implications on public statutory reporting.

In response to RNZ’s inquiries, an NZTA spokesperson confirmed that the agency has requested assurance from police regarding the accuracy of delivery numbers for breath screening tests and other road policing activities for the 2024/25 financial year. They emphasized the necessity of verifying the final results before resuming usual end-of-year reporting.

Each year, $24 million from the National Land Transport Fund (NLTF) allocated for the RPIP is contingent upon the successful execution of all speed and impairment activities at agreed levels. Funding is assessed quarterly, with up to $6 million available for authorization each quarter. Until the current issues surrounding breath testing are resolved, NZTA has paused its assessment of this funding for the first quarter of the 2025/26 financial year. Any unspent funds by the end of the financial year must be returned to the NLTF.

Although the bulk of funding for road policing activities—approximately $103 million per quarter—remains available to police, Minister Bishop reiterated the importance of resolving the breath testing issue promptly. He stated, “This is a prudent decision by NZTA and I welcome it. The breath testing issue is very concerning.”

On September 25, 2025, more than a month after the irregularities were first identified, NZTA’s group general manager, Richard Forgan, communicated with Johnson, expressing concern over the delay in notification regarding the issue. Forgan underscored that the integrity and accuracy of reported data are crucial for the RPIP. He instructed the Road Policing Investment team to investigate the data integrity issues with urgency and requested a series of information from police.

Forgan also highlighted a breach of the “no surprises” expectation outlined in the memorandum of understanding. He noted that the discovery of the issue in late August, the briefing of the Minister of Police on September 12, and NZTA being informed only via the Minister of Transport’s office on September 22 represented a significant lapse in communication.

As investigations continue, the NZTA remains focused on ensuring accountability and transparency in the delivery of policing services, as the implications of the breath test saga unfold.