Debt collection for nearly $1m worth of MIQ bills to start this week

Author
Adam Pearse, NZ Herald,
Publish Date
Mon, 17 May 2021, 4:49PM
(Photo / NZ Herald)
(Photo / NZ Herald)

Debt collection for nearly $1m worth of MIQ bills to start this week

Author
Adam Pearse, NZ Herald,
Publish Date
Mon, 17 May 2021, 4:49PM

Up to 100 invoices for managed isolation/quarantine stays will be referred to a debt collection agency for the first time this week.

It is the first tranche of MIQ bills being referred for debt collection. Debt recovery action isn't considered until invoices are 90 days overdue, or 180 days from when the invoice was issued.

As at April 30, 291 invoices were overdue by more than 180 days with a combined value of $909,535. It was unclear how much the first tranche of debt collection represented.

A total of 13,221 invoices had been issued for total MIQ stays as at May 9 - worth $60.8 million. Of this, $38.3m had been paid (63 per cent). A further $16.4m was not due to be paid yet, as they were within the 90-day period.

New Zealand citizens and permanent residents were supposed to pay $3100 for quarantine, with $950 for each additional adult and $475 for each additional child (3-17 years old).

In March, the NZ Herald reported only a third of the amount had been billed for quarantine up to February 28 - $10.7m out of $30.2m - has been paid.

At the time, NZ Credit and Finance Institute director Owen Goodwin said he was "startled that there is that level of time lag between invoicing and payment".

Act Party leader David Seymour also commented on the payback scheme, saying: "I can't believe that the Government is giving them 90-day terms. What are they, Noel Leeming?"