May/June - MTA

Auto Parts Recycler Division news
As some members may have
seen recently the NSW
Government will introduce into
Parliament a Bill banning the sale
of repairable write-off vehicles.
This proposal has quite a few
issues that will affect South
Australian members going
forward and may have a
detrimental effect on members
who perform rebuilds as
part of their day-to-day
business activities.
The proposed Bill may have
several impacts in our state that
may or may not force the state
government to make some
changes to our current legislation.
If the Bill is passed in NSW does
that then invite criminal elements
to search for a new base to
continue their activities? Will it
mean an influx of RWOs
imported into South Australia?
Will it force the price of
stock up?
Another hypothetical is if all
other state governments follow
the same path as that of NSW
will it mean that unlicensed
rebuilders often blamed for the
sometimes excessive prices of
some stock now disappear and
members will now be able
to purchase better stock at
realistic prices?
Further to more stock being
available, will this also mean that
insurers will now repair more
accident damaged vehicles rather
than write them off? And will
this also provide a better
Collision Repair Division
Executive Committee news
The Collision Repair Division
Executive Committee met
recently for their by-monthly
meeting. On the agenda for
discussion was the Code of
Conduct (CoC) external review,
quality approved member
programme, new times and rates
and quoting templates.
The Committee reviewed the
CoC external review and the
findings of the auditors and
established an order of
importance. The committee fully
understands that the
implementation of the findings
of the auditors could be a long
and drawn out affair.
The number one concern for
the committee was the auditors’
observation that a seventh
member is required to sit on
the Code Administration
Committee to break the
deadlock of three industry and
three insurance representatives.
As most members who have
read the report will notice the
word “assessor” is mentioned over
eighteen times. I can assure
members that the people at the
top of the insurance companies
are fully aware of the Code and
support it. While at the ground
level, as I’m sure most members
also know, the Code receives
less respect.
The Committee supports the
Code of Conduct and in future
the MTA and the Committee
will be holding information
nights to assist members in fully
understanding the Code and
its benefits.
Collision Division Chairman,
Brenton Abbott and I met with
IAG’S acting Assessing Manager
for South Australia, Mr Steve
Larkin, in regards to the
insurance company’s survey of
their network on realistic times
and rates (NTAR).
The survey found that a third
don’t want it, a third don’t
understand it and a third would
rather move towards NTAR.
“This proposal has quite a few issues
that will affect South Australian
members going forward...”
opportunity to the recycling
industry to further increase
their market shares in secondhand
parts?
And another sometimes over
looked benefit of repairable writeoffs
is that it has provided a good
training tool to apprentices in the
collision industry. Watching
young apprentices rebuild a
vehicle that has massive damage
to a roadworthy drivable vehicle
provides confidence and a sense of
achievement.
This has led to IAG making the
decision that a roll out maybe
some time away. This once again
is disappointing for the industry
as it leaves members in no
man’s land and not sure what
the future holds.
The Chairman and I both
reiterated that members are tired
of bearing the increases in costs
of the industry and will be
seeking increases going forward.
I will also add that more and
more insurers are trialling this
method of quoting and soon it
will become the common
requirement of the industry.
Members are reminded that they
need to know NOW what their
shop rates and costs are don’t
wait until it arrives on your
door step.
The MTA is also pleased to
announce that Refined Motor
Bodies have been awarded level 3
Green Stamp Plus
Environmental Accreditation.
(See Page 13 for the full story)
The MTA will be monitoring
the progress of the NSW
proposal closely on behalf of our
members. Executive Director,
John Chapman, as a member of
the National Motor Vehicle
Theft Reduction Council
will also be kept a breast of
the possible ramifications to
our members.
Peter McMahon
Auto Parts Recycler Division
Manager
M: 0417 825 525
This programme has been
developed over the last two years
with Federal Government
support. The MTA believes that
the environment will be one
of the most important issues
facing members in the
future and strongly supports
the programme.
Members interested in Green
Stamp Plus Accreditation
should contact Carly Roworth
on 82912000.
The MTA has also been
involved in the recent Fleet SA
tenders that members have been
busily applying for. The new
agreement is the first by a selfinsured
fleet to incorporate the
Code of Conduct in its
agreement. I wish all who applied
success in their tender as I think
it will add to the mix of repair
work available to members.
Peter McMahon
Collision Repair Division
Manager
M: 0417 802 525
www.mta-sa.asn.aumotor trade 23