As reported in last week’s Paint & Panel newsletter, the Government is proposing limited relaxation of laws governing the importation of vehicles, allowing personal importation of new vehicles and making it easier to import custom cars.
Response from some industry groups has been predicatibly negative. FCAI said the Government is "irresponsible and short-sighted" and shows: “complete disregard for the serious consequences that would flow from a plan to allow Australian consumers to personally import new motor vehicles”.
Calling for the Government to carefully consider the facts before making a final decision, FCAI Chief Executive Tony Weber said the Government's 'buyer beware' sentiment would see many Australians caught in high risk situations with their vehicles being outside established service networks.
"Brands selling in this country make substantial investments in Australia by way of dealerships, workshops, technology and training to support and service their products. This means consumers can be certain their vehicles can be serviced and repaired appropriately, and that recalls are captured so consumers are informed if something needs to be fixed," Weber said.
“The industry is not ‘fearmongering’ when it says Australians who personally import a vehicle made for another country may end up with a vehicle that does not meet their needs or operate as required in Australian driving conditions. Vehicles made for the Australian market are engineered for Australian conditions and safety specifications, so they will cope with the Australian climate, roads and lifestyle.
"It is very simplistic and misguided to say there is no reason to regulate if you're now part of a global regime. Only 57 countries are part of the global regime.
“Vehicles made for sale in Australia have the appropriate engine and transmission cooling systems to cope with Australia’s hot climate, towing requirements and fuel quality. It also includes having convenience items such as sat-nav, air-conditioning and infotainment systems specifically calibrated for Australia.
“The cars may look the same on the outside, but there are differences when you lift the bonnet or look deeper into the interconnected systems.
“In addition, it is important to note that motor vehicle brands selling in Australia manage the complex logistical process to get a consumer’s vehicle from the factory to their drive-way. This includes managing the entire border control process, which includes everything from getting the car off the ship, through quarantine and to the consumer safely. How can a single consumer be expected to navigate this system confidently without the addition of significant bureaucratic red-tape—which the Government has said time and time again it is determined to reduce.
“I am bewildered that Assistant Infrastructure Minister Jamie Briggs can take such a simplistic view of an issue and appear to completely discount the advice of the industry it directly affects. It seems this position is driven by a misinformed view of the purchasing of a motor vehicle. The reality is that the whole of life cost of a vehicle under this scenario will become a significant burden for those who choose to import vehicles from overseas dealers, made for another country’s conditions.
Weber has urged the Government to completely consider this matter by investigating the implications the proposal has on Australian consumers. He also pointed out that such legistalation would have a negative affect on the work Australia’s National Motor Vehicle Theft Reduction Council has undertaken to reduce motor vehicle theft across the country as there is no way for consumers importing cars privately be able to check the historical and legal records or the real provenance of the imported vehicle.
MTA WA issued a statement saying that ‘Government washes hands on consumer protection with parallel import decision’. MTA WA CEO Stephen Moir said “The decision smacks of policy for policy sake, does nothing to improve competitiveness, ignores well founded industry concerns for consumers and sends a dangerous signal that this government intends intervention where none is required or justified.”
“They are hiding behind a Productivity Commission report and a competition policy review both of which bundled the purchase of a car online in the same category as purchasing a book through Amazon,” Moir said.
”It’s interesting that on one hand the Minister is saying that he wants to make cars more affordable but on the other has failed to address anomalies such as maintaining the luxury car tax which is no longer required given the withdrawal of manufacturers from the Australian marketplace. If Minister Briggs is serious then lets have the discussion about taxation rules as well,” Moir said
Moir said it had been clear from the outset that the government never intended to take industry concerns seriously and had been adamant through most consultations that this decision was always going to be made.
The Australian Automotive Aftermarket Association (AAAA)on the other hand welcomed the announcement. “With the closure of passenger car manufacturing in Australia, the local demand for new vehicles will be satisfied totally with imports. Aligning Australian with international standards will reduce bureaucratic red tape, reduce prices and make our market more competitive,” AAAA Executive Director Stuart Charity said.
“We consider the proposals outlined by Minister Briggs to be a good balance for car owners and the community. The AAAA endorses his statement that the government should not regulate where there is no good safety or community reason to do so.
“The changes to regulations relating to personal importation of vehicles are also of interest to the aftermarket. The AAAA does not believe that these proposals will open the floodgates to personal imports.
“Appropriate relaxation of personal imports will assist hundreds of thousands of Australia’s motoring enthusiasts. Such changes would also generate a new avenue of business for the Australian auto aftermarket as consumers service and customise their new imports,” said Charity.
The Australian Automobile Association also welcomed the proposed changes. "Ot is important the interests of the consumer are front and cnetre of the car buying process through improved competition and affordability." AAA chief executive Michael Bradbury said. "The relaxation of of vehicle import restriction has the potential to improve motoring affordability with our analysis showing many new vehciles are more expensive in australia than other comparable markets." he said. Bradbuyr also called for the vehicle import tariffs and the luxury car tax to be lifted in 2017 when local manufacturing ends.