July/August - MTA

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PRESIDENT’S REPORT By MTA-SA President Colin Clark Crackdown on Backyarders Welcomed For too long our industry has been undermined by unqualified or unscrupulous operators, more commonly known as “backyarders”. These individuals, and sometimes groups, seek to operate in the shadows of the industry and rip off the unsuspecting car buyer or those seeking to have their vehicle repaired. The MTA maintains an ongoing fight against the infiltration of backyarders and we are encouraged by the ongoing technological development of vehicles which makes it harder and harder for those without the skills or proper equipment to work on these vehicles. Simply, these “backyarders” are a danger to the public. They sell unsafe vehicles which ever way they can. They repair accident damaged vehicles in ways which do not meet manufacturers specifications and this puts lives at risk. While we continue to lobby Government for vehicle inspections at change of ownership, we are pleased to see that the State Government through the new Commissioner for Consumer Affairs, David Green, is having a fair dinkum crack at the problem of backyard car dealers and those who don’t do the right thing. His strident move to enforcement of the current laws is to be commended. We are seeing a much more pro-active approach to those who seek to undermine public confidence in our industry. In the past four months, the Office of Consumer and Business Affairs (OCBA) has: • Reported individuals for interfering with the odometers of second hand vehicles; • Reported a licensed second hand dealer who has been posing as a “private” seller, therefore avoiding their obligations under the Second Hand Vehicle Dealers Act 1995. He has also been reported for alleged breaches of the Fair Trading Act 1987. • Issued warnings to licensed dealers about failing to ensure required particulars are contained in their advertising of second hand vehicles • Issued written warnings to people about carrying on business as a second hand vehicle dealer whilst unlicensed. This activity reinforces the MTA’s position during negotiations on changes to the Second Hand Vehicle Dealers Act to allow some resources from the Second Hand Vehicle Dealers Compensation Fund to be used by OCBA in the future, for compliance purposes. We must do everything we can as members and as an Association to ensure that the buying public recognise that it is not in their interests to deal with “shonks”. MTAA and AADA Members need to be aware that the Australian Automobile Dealers Association (AADA) and the Motor Trades Association of Australia (MTAA) continue to represent our industry at a Federal Political level. Activity on franchising has been at the forefront of AADA and MTAA’s activities. Members may wish to reflect that the tax concession on new equipment introduced by the Federal Government last year did not include vehicles by accident. Our national organisation provides input to the Federal Government on many issues and this was but one. Then there was OzCar which was instrumental in freeing up the credit system for new car dealers. AADA has also been working with the Federal Treasury Department on the point of sale exemption (which many dealers will be able take advantage of ) under the new National Consumer Credit Protection Act. AADA has been a member of the Attorney General’s Consultative Group, which is working on the introduction of the new Personal Property Security Reform which will see the introduction of a new national security register replacing all of the current state and territory registers. Motor vehicles will be a significant part of that new register. Both of those issues are very important to dealers and the day-to-day operations of their businesses and the National Secretariat has endeavoured to ensure that the compliance burden for dealers is kept to a minimum. AADA has also successfully argued against the introduction of lemon laws – both at a state level (when the issue was first raised by Victoria) and more recently during the review in 2009 of statutory warranty arrangements. The Association also worked closely with the Australian Competition and Consumer Commission (ACCC) in relation to the changes to the laws on price advertising, which came into effect in late May last year. It was important to all dealers that the ACCC clearly understood the structure of vehicle and accessory pricing and how the new arrangements would impact on dealers. The National Secretariat also succeeded in having the ACCC remove offending cartoons from the Motor Vehicle Advertising Guidelines publication. Franchising matters have always been a focus of the national association and the National Secretariat continues, on behalf of motor vehicle dealers, to argue for a strengthening of the Code. So rest assured your Association and, through it, the national AADA are continuing to work on issues affecting our industry. There has been some commentary of new groups setting up to represent the industry but we have seen nothing more than words. That said, we remain in contact with other State Associations which are not members of AADA nationally or MTAA as member issues must override individual State boundaries. 4 motor tradewww.mta-sa.asn.au
EXECUTIVE DIRECTOR’S REPORT By MTA-SA Executive Director John Chapman The Great WorkCover Spin Well the new WorkCover rates have been released and there is good news and bad news for employers. Earlier this year, the WorkCover Board announced that it had reduced the average levy rate from 3 to 2.75 per cent. This reduction was too little and way overdue from the legislative changes which were put in place in 2008. These changes followed an independent review known as the Clayton Walsh review. At the time 1 the Government said the review was directed in part to an objective of “an average employer levy rate reduced to a range of 2.25 to 2.75 per cent by July 1 2009”. Some in the business community think the latest reduction is a good result. I remind members and others that the current levy rate in Victoria is 1.387 per cent or just over half of our current average levy of 2.75 per cent. In New South Wales, their WorkCover levy has just been cut for the sixth successive time with a target rate of 1.66 per cent. Depending on what automotive industry sector you are in, your rate has hopefully gone down. But for some employers who manage their operations well and take their occupational health and safety responsibilities seriously, they are facing an increase in costs because of the removal of the Bonus/Penalty Scheme effective from July 1 2010. This ham-fisted decision typifies the mismanagement of the state’s workers compensation scheme – which is paid for by employers – which has been going on for too long. The decision to remove the Bonus/Penalty Scheme was made in mid 2008 but WorkCover did not communicate to every employer what it was going to do to replace it. After persistent lobbying by the MTA last year, a “consultation” process was put in place to develop an alternative to the Bonus/Penalty Scheme. But that alternative was never going to include a system which rewarded good employers and penalised not-so-good employers. Why? Because WorkCover had already committed to a new computer system which did not have the capacity for a bonus/ penalty. Guess what – the outcome of the consultation process was a recommendation that a “consultant” should be hired to work with stakeholders to devise a new system. Is the WorkCover organisation so bereft of talent that it needs to bring in a high priced outsider to fix something that should be core business to the organisation? All this prevarication delayed any decision on the WorkCover rates for 2010/11. Businesses trying to plan a budget for 2010/11 would have found it virtually impossible to plan for the cost of workers compensation insurance. WorkCover seem to think it acceptable that we get the rates in the second week of June, just a few weeks before the start of the new financial year. That shows a fundamental disconnect with business and business planning. WorkCover’s latest letter to employers (something we said should have been issued months ago) tries to justify that removing the Bonus/Penalty Scheme is good for employers. Well it might be for the employers who have not managed their OH & S well – they won’t face a penalty. The letter in part states “This improved industry-based system without bonuses or penalties will be better for all stakeholders and will encourage industries to collaborate to find employment opportunities for workers with disabilities leading to further reductions in the total cost of workplace injuries.” What a load of cobblers! This is the sort of information we have come to expect from an organisation which is more intent on spin than the substance of properly managing claims. All sides of politics grimace when you mention the issue of WorkCover. Simply WorkCover doesn’t work well at all and hasn’t for many years. WorkCover has appointed a new Chief Executive, Rob Thomson, whose challenge is to rebuild confidence with the employer community. We look forward to any improvement. We will continue to hold WorkCover and the State Government to account on an organisation which is funded by employers who do not get an adequate say in its management. 1 Premier Rann Ministerial Statement to Parliament 26th February 2008 www.mta-sa.asn.aumotor trade 5
Page 1 and 2: Official magazine of the Motor Trad
Page 3: inthisissue... features: 8 11 6 Kel
Page 7 and 8: pit stops, helping with pre-race pr
Page 9 and 10: “Today that vision is a reality.
Page 11 and 12: Motorsport demands matched by the r
Page 13 and 14: All Transport Crash Repairers celeb
Page 15 and 16: National Motor Vehicle Theft Reduct
Page 17 and 18: (L-R): MTA Executive Director John
Page 19 and 20: MTA Life Members (L-R): Richard Fla
Page 21 and 22: Collision Repair Division Executive
Page 23 and 24: Regions and Divisions Southern coun
Page 25 and 26: Three Simple Rules for Smarter Supe
Page 27 and 28: Business Seminar proves invaluable
Page 29 and 30: NEW VEHICLE REGISTRATIONS SOUTH AUS
Page 31 and 32: For more information contact CRC In

July/August - MTA

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