Parliament has heard the first reading of legislation which will restrict clamping fines to a maximum of $100.

Commerce and Consumer Affairs Minister Kris Faafoi presented the legislation which would protect the public from being preyed upon by clampers.

"Many people have complained after having to pay large fees – and this can be in the region of $700 - on the spot to unclamp their vehicle," he said.

"Not only are people being fleeced, there are confronting situations where members of the public feel vulnerable in dealing with aggressive wheel clampers.

"The Government has introduced the Land Transport (Wheel Clamping) Amendment Bill to better protect motorists from the unscrupulous wheel clamp operators."

Should the bill pass, motorists would have to pay no more than $100 to wheel clampers, the minister said.

Consumer Affairs Minister Kris Faafoi. Photo / Mark Mitchell

New Zealand First welcomed the proposed changes to rid the country of wheel clamping behaviour which has caught out thousands of motorists.

The party's consumer affairs spokesman, Clayton Mitchell, said it supported a business right to enforce parking restrictions but without the expensive fees.

"Cowboy clampers are holding people to ransom for what is often an innocent mistake," he said.

"New Zealand First is proud to be a part of a Coalition Government putting an end to this behaviour."

Transport Minister Phil Twyford said the wheel clamping industry is largely unregulated and there is a grey area over how much motorists can be charged.

However, the new legislation would provide more clarity for motorists, he said.

Cowboy clampers who ignore or turn a blind eye to the new law would be committing an offence and Twyford said the police "will enforce this".