Jacinda Ardern has likened the recouping of MIQ debt to how Student Loan debt is recovered from those living overseas.
Speaking to media today, the Prime Minister said she hoped the “majority will pay what they are required to pay”.
The fees, which were introduced in August last year, are currently $3100 (incl GST) for 14 days in managed isolation but from 25 March, 2021, this will increase to $5520 (incl GST) for temporary entry visa class holders for the first or only person in a room, $2990 for an additional adult, and $1610 for an additional child.
Fees will not increase for Kiwis who have New Zealand citizenship.
People are given 90 days to pay Managed Isolation and Quarantine (MIQ) fees but those who leave the country again still have leeway to avoid paying fees until they return again to New Zealand.
“My recollection is that if people do leave the country it’s on return that we are able to seek payment of any unpaid debt owed to the Government, similar to the Student Loan regime,” Arden said.
Although some people left New Zealand without paying MIQ fees, Ardern said “collection is important”.
“I mean this is ultimately tax-payer money and we are subsidising the quarantine regime.
“So collection is important, and the border is one way that we collect in the same way that we do around student loans,” she repeated.
Asked whether people should be stopped from leaving New Zealand until they have paid, Ardern simply said, “I think people should pay”.
“For those who are taking up the privilege to leave and then return safely, we ask them to do the right thing and to pay.”
Out of 9,078 of invoices sent to those who have used MIQ facilities, 3,520 have been paid, 3,543 have been waived and 956 are overdue, an MIQ spokesperson told 1 NEWS today.
The remaining 1,059 invoices sit within the 90-day payment period.
Overall, $32,520,801 million worth of invoices have been racked up in MIQ but more invoices have been waived than paid.
"We do not have a value for those because not all will be invoiced. Managed isolation costs are budgeted for by the Government," the spokesperson said after being asked what the dollar figure for waived invoices would be.
So far $11,735,384 worth of invoices have been paid for by those in MIQ and those overdue sit at $3,257,115.
The remaining figures are caught up in the 90-day lag between those who have been invoiced and are still to pay.
These figures are up to 7 March, noting that invoices are issued after the two-week stay so these relate to people who arrived in managed isolation up to 21 February.
“Managed Isolation and Quarantine sends a reminder 30 days before the due date to remind returnees about the invoice including details of how to pay, how to apply for an installment plan, and what to do if the person considers they are not liable or are exempt,” the spokesperson said.
“After the due date a further letter will be sent requesting payment. This letter will also contains details about how to apply for an installment plan.
“If the person does not contact or pay, a decision will be made about the most appropriate course of action. Options include debt collection agency referral or court action. This decision will be made applying a consistent set of factors and would only occur after 180 days from when the invoice was issued.
“As of last week, no one has been referred to debt collection as the first unpaid invoices have only come up for consideration to be sent to debt collection (i.e. reaching 180 days overdue) at the end of February.
“The regulations in their current form do not empower us to stop people leaving the country if they have not paid their MIQ charges,” the spokesperson confirmed.
The Government has also received 4,545 waiver applications of which 1,002 were declined.
SHARE ME