One of my beefs with this system is that it's based on the number of reported crimes.
Just because a crime was reported doesn't mean legal wrongdoing took place.
And oh yeah...
Information from police indicates that year-over-year changes do not necessarily reflect actual increases or decreases in the incidence of this type of offence since the number of hate crimes recorded in a given area can be influenced by many different factors. (...) In other words, the rate of hate crime in a given area may be more indicative of reporting practices by the public and local police services rather than prevalence levels.