In the midst of difficulties from drought, fire, storm, flood, virus and human tragedies, the quarterly meetings of the MTA Queensland divisions have been remarkable for the resilient and positive outlook expressed. Yes, sector and economic concerns and uncertainties featured, but the emphasis was on progress and dealing with the relevant industry matters. I share with members some of the insights from the divisional meetings.
In previous Viewpoints I’ve mentioned the very tough business circumstances experienced by the farm machinery sector. The newly elected Chair of the Queensland Farm and Industrial Machinery Dealers Division (QFIMDD) Bruce Sommerfeld, pointed to the promise of improved business conditions for members and the sector arising from the prospect of a better season for agriculturalists. Whilst the new tractor market had stalled and enquiries low, causing reductions in staff levels or staff hours, the hay making equipment sales had been strong with the expectation to be so for the near term.
The division discussed measures which would enable businesses to remain resilient through challenging economic conditions such as drought, fire, flood and storm. These included the easing of some taxes and fees such as stamp duties levied on general insurance policies, workers compensation, and motor vehicle insurance policies. Fortuitously, our 2020-2021 State Pre-Budget submission had proposed a moratorium on such compliance costs for business.
A significant initiative proposed by the QFIMDD was for the establishment of a Small Business Management Deposit Scheme to operate on the same principles as the successful Farm Management Deposit Scheme. It would enable eligible small businesses to defer taxation on eligible deposits on undistributed earnings in periods of high income. This would provide reserves to be created to fund cost-effective lower risk proprietors’ equity which could be applied to finance, business growth and expansion; provide for natural disasters and unforeseen events etc. Chief Executive Officer Dr Brett Dale and I were of the view this was an initiative worthy of consideration by the Federal Government’s 2020-21 Budget team and submitted the concept as a supplementary submission. For the interest of members that submission is on the website. The QFIMDD Chair Bruce Sommerfeld has promoted the initiative to the local Federal Members of Parliament.
The Automotive Engineers Division (AED) is grappling with the rapid emergence of new technologies but the Chair of AED, Mark Dodge, insists there are new opportunities to be seized that will ensure the sector’s viability. The ‘industry is not all doom and gloom’. The integral role of the automotive value chain in the nation’s economy and logistics is not fully recognised which then impacts employment opportunities, the retention of personnel, and skills development to grow the industry. Training, upskilling and industry accreditations are AED priorities.
The Queensland division of the Australian Automotive Division Association (Q AADA) has every reason to be pessimistic. The imposition of reduced credit availability arising from the Banking Royal Commission (BRC) and the contraction, by 13 per cent, of new motor vehicles registered for January 2020 are negatives. In addition, the withdrawal of the United States manufacturer General Motors from Australia and the decision to retire the Holden brand by 2021 has been another blow.
The Chair of Q AADA, James Robertson, in the face of declining new motor vehicle sales and technological disruptions, had an extensive schedule of activity to progress and is pushing ahead on significant issues. These include the lobbying of Federal Members of Parliament on BRC’s recommendation to remove the Point of Sale exemption for in-house motor dealer finance. This has the consequence of imposing additional training requirements to perform the same financial activity. The pending legislation on the mandatory sharing of Service and Repair Information has unresolved issues that should be remedied including the sharing of information on commercially fair and reasonable terms to ensure independent repairers are subject to the same cost and requirements as dealers.
The Automotive Parts Recyclers’ Division (APRD) has been proactive on the challenging range of issues that confront the sector. A concern for the division was the disposal of oil and tyres arising from the disparities in operators and pricing. Consultations with other divisions regarding oil and tyre disposal requirements is be undertaken.
The Chair of the Automotive Remarketing Division. Peter Dever, advised that the consistent issue facing the used car industry continued to be the Takata airbag recall and the impact it was having on the sector. The continued expansion of the brands and models affected by the recall by the manufacturers has seen most members affected in some way with vehicles in stock requiring air bag replacement prior to resale to the public. The recent inclusion of vehicles manufactured in the late 90s, previously thought to be unaffected, has seen several manufacturers announce buy-back schemes for affected vehicles as a preferred solution as parts are no longer available.
The Office of Fair Trading (OFT) embarked on an airbag campaign late in 2019 to ensure the industry was complying with the Australian Competition and Consumer Commission’s (ACCC) requirements. Most licensed dealers operating from retail premises were subject to an audit to ensure recall procedures as stipulated by the ACCC were being adhered to. This included advising clients appropriately in relation to the sale of vehicles subject to a ‘future’ recall.
Advocacy
The APRD intimated that the common issue of high concern was the illegitimate (backyarders/fringe dwellers) industry and the negative impact on the sector. As said in previous Viewpoints, the OFT has been a good friend of the Association which includes acting on information about backyard motor dealers acting as private sellers. The OFT, as a matter of routine, monitors the second-hand motor industry for regulatory compliance. To assist the OFT, members should report the activities of unlicensed backyard dealers, and it can be done anonymously . It’s easy to do, go to the MTA Queensland webpage Dob in a backyarder and enter the details of the perceived illegitimate activities. I assure the OFT will act on the information.
A busy round of written advocacy duties is pending. These include to the Motor Accident Insurance Commission on its review of the limits to apply to compulsory third party; the Payment times Reporting Bill; Enhancements to unfair Contract Term Protections; Industry Codes – Franchising (New Vehicle Dealership); and the Electric Vehicles in the retail energy market. As is the standard practice, the relevant division has been consulted on specific policy issues. If members have an interest in these, or would like to make input, please contact me.
Finally
Through the Member Engagement Strategy, which enables one-on-one discussions with members, it is very clear that the industrial relations advice and service provided by our Workplace Relations advisors is a valued component of membership with the MTA Queensland. I share with members some insights. Overall, for the past year there’s been almost 2,800 enquiries from members. The matters covered include unfair dismissals; discrimination; wage disputes; general protections claims; and applications.
Until April, take care and stay safe.