Thousands of mechanics could lose their jobs if changes to the country's vehicle licensing system including increasing the time between warrant of fitness checks on vehicles goes ahead, says a Mount Maunganui mechanic.

The owner of a Mount Maunganui automotive workshop says the Vehicle Licensing Reform proposed changes will have a significant impact on the industry as businesses will be forced to restructure - leading to job losses.

'We will be in a hell of a panic. People are going to lose jobs and it's in the thousands.”

The Motor Testing Association released a discussion document on Thursday as part of its Vehicle Licensing Reform proposing changes to the current system that will result in an increase in the time between warrant of fitness and certificate of fitness inspections for vehicles.

The four options to be considered are: yearly inspections for vehicles up to 12-years-old, six monthly thereafter; undertaking a first inspection at three years followed by annual checks thereafter; inspecting vehicles based on the distance travelled; inspecting vehicles when they change owners.

All include measures to encourage safe vehicles.

The changes will save motorists up to more than $200million a year.

The automotive shop owner, who does not wish to be named, says the scariest option is to only test when ownership changes. He says if the Government were to go ahead with this option some workshops would be forced to close.

Tauranga MP and Associate Transport Minister Simon Bridges says the Government is interested in gaining the public's opinion on how to improve vehicle testing.

'We want to hear from as many New Zealanders as possible about the options we have presented and any other ideas they may have to make it the best possible VLR in New Zealand.”

MTA spokesman Ian Stronach says the primary focus of the reform is the maintenance or improvement of road safety outcomes and all four options need to be considered with that in mind.

'Care now needs to be taken to ensure that this progress is not reversed through the introduction of changes that may carry considerable risk.”

Simon says there is a possibility the Government may need to implement safety requirements alongside the proposed changes.

'Although we inspect less we need more thorough inspections.”

He says another option will be to target where the dangers occur rather than just testing everyone every six months regardless of whether the vehicle poses any risks.

Ian says the Government is assuming vehicle defects currently make little contribution to road crashes and reducing the frequency of vehicle inspections will have no impact on crash rates.

'MTA consider this is overly optimistic and represents a considerable risk to all road users if those assumptions prove ill-founded.”

Simon says New Zealand inspects vehicles almost more than any other country within the Organisation for Economic Co-Operation and Development.

He agrees Australia has a substantially better safety record than New Zealand 'because they do other different things.”

Simon says the VLR could replicate Australia's system where police target unsafe vehicles and issue demerit points based on the vehicle's condition.

'We want to see if we can create a system that is cheaper, and saves time for Kiwis, while also having similar or even better safety outcomes.”

Ian says there should be no changes to the current system unless there is a stronger commitment to education on maintaining vehicles and significantly more police enforcement.

While that might be achievable in the longer term, it is likely to result in a transfer of costs from motorists to government thereby defeating the very aims the reforms set out to achieve.

NZTA Chief Executive Officer Mike Walsh says it's not the changes he is concerned with but more about 'looking at the options”.

'From our point of view our concern is around vehicle safety on our roads.”

Mike says what MTA is looking at would present higher risks in road safety and says the Ministry of Transport has admitted the four options present crash risks.

'If you take the worst case scenario - yes there would need to be sizable adjustments in the market and as a result that would impact a lot of businesses.”

There is a possibility the vehicle testing station on Hewletts Road will be closed before Christmas 2012.

A VTNZ spokesperson says the closure of the vehicle testing station is not due to the Vehicle Licencing Reform proposed changes.

Instead VTNZ says the closure is due to a number of reasons including the lease to the building ending just before Christmas 2012.