Natural disasters don’t discriminate. A recent report reveals that the State disaster bill is in the vicinity of $30 billion. Over this summer, Queenslanders have endured supercells, hail storms, drought, bushfires and floods. For our members, in various ways these have impacted their welfare and business operations. Currently, some of our members are emerging from the aftermath of the devastating floods at Townsville and nearby localities and in the north-west.
While our hearts go out to all who have experienced various forms of ruin from the flooding events, our members have been in our minds as they go into recovery mode. To check on their welfare and business operations, our Industrial Manager Ted Kowalski and Industrial Relations Officer Evangeline Kannis spoke with members in affected areas. Each had a story to tell.
Some had negligible to minor impacts whilst others experienced severe damage either to their homes, businesses or both. Whilst community, corporate and public support is necessary and helpful, government grants and restoration programs are essential for the rebuild. To help members, our Industry Bulletins have drawn attention to the various government programs to assist with the recovery and these are iterated on the website under ‘Industry News’.
Advocacy
Advocacy responsibilities are spread across both state and federal jurisdictions and agencies that reference issues to the automotive value chain. As I look back over some 15 years of advocacy, it is clear we have a sound track record of enunciating, either in submissions or directly in for the views of membership on issues of concern and reform measures. What is important is the views expressed have contributed to a collective position that have been mirrored in legislation or regulations that ultimately benefit our members. For this reason alone, the advantages of MTA Queensland membership are significant.
One of the matters I’ve worked on in March is the consultation paper Mandatory Scheme for the sharing of motor vehicle and repair information deriving from the Consumer and Corporations Policy Division of the Australian Treasury. For the Australian Automotive Dealers Association (AADA) (new car dealers) and Automotive Engineers Division (AED) (mechanical repairers) this is an issue in which they have had long-term interest and engagement arising from previous consultations. Group Chief Executive Officer Dr Brett Dale and I have liaised with AADA and AED members to ensure their views are reflected in our submission. The submission was lodged on the 11th March and will be on the website for members’ perusal.
It is clear from our soundings that AADA and AED members continue to support the statutory mandated regulatory framework for the effective transfer of vehicle repair and maintenance information from Original Equipment Makers to independent repairers on fair commercial terms. This was the October 2017 position expressed in a supplementary submission to the Australian Competition and Consumer Competition arising from its the New Car Retailing Industry – a market study draft report.
As intimated in last month’s Viewpoint, we responded to the Queensland Transport and Public Works Parliament Committee’s invitation for views relating to Queensland Civil and Administrative Tribunal (QCAT) and Other Legislation Amendment Bill (the Bill). These included the Fair Trading Act (FT) and the Motor Dealers and Chattel Auctioneers Act 2014 (MDCA Act). As a consequence, Automotive Remarketing Division (ARD) Chairman Peter Dever and I presented the views expressed in our submission at the Parliamentary Committee’s Hearings on the Bill.
We were keen to pursue issues raised in our submission with the Office of Fair Trading (OFT) at our recent scheduled meeting with OFT officers. The first was the need for regulatory measures that raise the standard of the competencies required to hold a motor dealer’s licence or to comply with the requirements for registration as a motor dealer salesperson. The second was that a mandatory prerequisite for applicants seeking a motor dealer’s licence be to complete a traineeship/internship to be served as a registered salesperson under the supervision of a licensed motor dealer to develop competencies in all aspects of motor vehicle trading. The ARD will continue to work on both policy issues in the interests of their members.
We’ve signed off on our submission to the Motor Accident Insurance Commission (MAIC) in respect of its Review of the Limits to Apply to Compulsory Third Party (CTP) Insurance. This related to the dynamics of factors that should be considered in making determinations relevant to the Commission’s setting of insurance premium floors and ceilings across the 24 classes of vehicles comprising Queensland’s motor vehicle fleet. MTA Queensland, whilst recognising the MAIC has a statutory duty to maintain prudential standards, consideration should be given to the headwinds in the form of drought, storms, bushfires, flood, economic indicators and living costs impacting household budgets. It is on the website for members to consider.
Upcoming is a submission to Jobs Queensland ‘on what the future of work will look like over the next decade and beyond to inform its Future of Work project.’ The MTA Institute General Manager Paul Kulpa will have significant input into this document.
Divisional News
The MTA Queensland Board recently met for its first quarterly meeting at which Divisional Chairs, overall, expressed a sentiment of confidence for their sectors. An exception was the Queensland Farm and Industrial Machinery Division which reported that ‘agricultural farm machinery dealerships in Queensland were experiencing their toughest period in history.’
For the Automotive Remarketing Division (ARD), the most significant on-going issue facing the sector was the Takata air bag recall. The continued expansion of the makes and models affected by the recall by the manufacturers meant most members were impacted in some way with vehicles in stock requiring air bag replacement prior to resale to the public.
Congratulations are due to the ARD for its advocacy in achieving some success with dealer-to-dealer transactions. We are continuing to pursue better access to the Department of Transport and Main Roads’ form to allow dealers to dispose of vehicle registrations to other dealers. A form is available, but not electronically and in small quantities. This change will curtail the number of toll notices and other infringements being incorrectly billed for vehicles that have been sold.
The Service Station and Convenience Store Association (SS&CSA) of Queensland reported the mandatory fuel price reporting process commenced on 1 December 2018 had been implemented smoothly. No members had experienced significant problems once the initial setup was finalised. The SS&CSA had engaged in extensive consultations with the Energy Division of the Department of Natural Resources, Mines and Energy on the introduction of the scheme.
Overall, the reports revealed that Divisions were proactive addressing the challenges that are confronting their sectors. For example, the Rental Vehicle Industry Division initiated discussions with other industry organisations that represent the rental and finance industries to ascertain the value of information sharing.
Finally
Our recent Lunch and Learn workshop was presented by an Officer from the ATO here at MTA Queensland. The Lunch and Learn initiative was designed to educate and support members with relevant key business topics and, in 2019, we hope to transform the concept into webinars to allow our members across the state to access the content anywhere and anytime.
This Lunch and Learn followed our successful 2018 workshops covering social media for automotive businesses. The ATO session covered practical and current tax topics including independent reviews, Single Touch Payrolls, Instant asset write off, Cash Flow Coaching Kit and Concessions and deductions. You can access a summary of the workshop in the Member Portal HERE.
Until next month, take care and stay safe.