This Viewpoint has dual disposition – it is the last for 2018 and the first for 2019. The priority is to wish each of you a joyful Christmas and a New Year that brings prosperity and all that you aspire.
The year is ending with a rush of activity, and that is before the commencement of the festive season. I’m in the throes of winding up issues arising from the Annual General Meeting (AGM), including the final lodgement of the approved Rule changes, gearing up for a Board meeting in early December, finalising a policy submission and preparing next year’s schedule which is shaping up to be very busy.
The State Strategic Plan 2016-18 is being reviewed so that its goals and initiatives continue to reflect the service obligations to members in a digital economy and the technical and digital transformations underway in the automotive value chain. In my area, I’m considering ways to increase interactions between the membership and our corporate partners so that members are fully informed of the benefits open to them as members of MTA Queensland.
Advocacy
The policy issue that is preoccupying the mind now, and will be a significant matter in the coming year, relates to Australian Consumer Law with the focus on ‘lemon laws’ and ‘warranties’. At a recent sitting of the Queensland Parliament, the Queensland Civil and Administrative Tribunal (QCAT) and other Legislation Amendment Bill (the Bill) was introduced. It included the extension of QCAT’s jurisdiction for motor vehicle related claims under the Fair Trading Act 1989 and the Motor Dealers and Chattel Auctioneer Act (MD&CA) 2014 from $25,000 to $100,000.
The policy intent derives from a 2017 state election undertaking to improve consumer rights in relation to ‘lemon vehicles’. We recognise that, and also that Ministers for Consumer Affairs’ at their last meeting agreed to increase the threshold in the Australian Consumer Law definition of ‘consumer’ from $40,000 to $100,000. The quantum had remained unchanged since 1986. In the New Year, we’ll present a submission to the Parliamentary Legal Affairs and Community Safety Committee (LA&CSC).
The Department of Justice and Attorney General’s Office of Regulatory Policy had consulted us on the revisions to the MD&CA Act. This related primarily to the reinstatement of the statutory warranty for used vehicles more than 10 years old with more than 160,000 on the odometer (Class B statutory warranties) and repealed in Property Agents and Motor Dealers Act 2000. We did not oppose the return of Class B statutory warranties, recognising that it was an election obligation; reduced ‘red tape’ and had beneficial business benefits. At the time of the original change, we believed that Australian Consumer Law (ACL) made the provisions redundant and continue to advise members of their obligations in relation to the ACL on sales of motor vehicles.
Following up on our submission to the Queensland Parliamentary Committee on Transport and Public Work’s (T&PW) inquiry into transport technology, Group Chief Executive Officer Dr Brett Dale attended the Hearings to give evidence. Brett elaborated on the content of our submission on the trends and changes in fuel type usage and the increasing electrification of vehicles in coming years. The T&PW Committee was interested in Brett’s references to the MTAiQ Innovation Hub, expressing interest in visiting. This will occur in the near future.
Upcoming in mid-December is a submission to the National Transport Commission’s Motor Accident Injury Insurance and Automated Vehicles Discussion Paper. It seeks views that include the identification of barriers to accessing compensation under current Motor Accident Injury Insurance schemes for personal injuries caused by an Automated Driving Systems. It is on the website for members to peruse.
The policy agenda for next year, setting aside those that will be the subjected to the Federal election process, will centre on the Australian Consumer Law. Ministers for Consumer Affairs at their last meeting: ‘Agreed to maintain the current framework in the Australian Consumer Law for non-major failures, including failures within a short period of time after purchase and to undertake further work to ensure consumers and retailers are supported when a good fails.’ In relation to this point, Queensland and South Australian Consumer Affairs Ministers ‘did not support any delay
in the provision of enhanced protections for consumers who had purchased ‘lemon’ motor vehicles or caravans.’
Consumer Affairs Australia New Zealand (CAANZ) officials were directed to undertake work on options to failures within a short time after purchase. This includes whether tailored approaches are needed for high value goods including motor vehicles and caravans. Officers are to develop options and these involve
- providing consumers with a 60-day refund or replacement right if a motor vehicle or caravan is immobile or not drivable; and
- reversing the onus of proof to ease the evidentiary burden on consumers by requiring suppliers to demonstrate that at the time of supply a new motor vehicle or caravan was compliant with consumer guarantees.
A report to Consumer Affair Ministers is due during 2019.
On the ACL agenda are issues relating to extended warranties. Consumer Affairs Ministers agreed to a ‘cooling off right and enhanced disclosure for extended warranties.’ The intention is for consumers to better understand how the benefits of an extended warranty compares with their rights under the ACL. The reforms will require businesses to provide improved information about extended warranties to consumers; ensuring consumers are aware of whether extended warranties provide additional benefits beyond the ACL; and providing them with the opportunity to opt out of extended warranty contracts.
In the consultation processes, as is the practice, we will present submissions reflecting members views on each of the ACL issues.
Finally
Two signature events define the end of the year. First is the AGM, and the second is the annual industry dinner. At the AGM, under the scrutiny of the Australian Electoral Commission the new MTA Queensland Chairman, Paul Peterson, was elected following the retirement of long-serving Chairman David Fraser. I look forward to Paul’s leadership, progressing initiatives of his predecessor and those he will introduce to take the Association into a new era.
The annual industry dinner is an occasion for all within MTA Queensland’s ambit to enjoy camaraderie and celebrate the achievements of apprentices and members’ innovations and community engagements. Congratulations to Apprentice of the Year Jack Goodrich and winners of the Innovation Award ACE EV Group, and Community Award Southeast Auto Mechanical.
Christmas for me, as usual, will be with the family at home. In the New Year we’ll enjoy the Sunshine Coast’s environs. My best wishes to you for a happy Christmas with your loved ones and a New Year that brings happiness and success.
Until February 2019, take care and stay safe.