Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

The Motor Trade Association of Western Australia through its Chief Executive Officer, Mr Stephen Moir, has made representations on behalf of automotive dealerships, particularly local businesses in my electorate of Moore, concerning the government's proposal to permit the personal importation of new vehicles from 2018. Whilst this deregulatory measure may appear to be consistent with free market principles by introducing greater choice and competition into the marketplace, there are some significant considerations which should be taken into account such as motor vehicle standards, specifications and operating environments which vary considerably between countries.

Australian car dealerships make substantial capital investments to operate their businesses through the acquisition of premises, trading stock and maintenance equipment, and provide high standards of safety and serviceability to consumers whilst employing tens of thousands of Australians including apprentice mechanics. These local jobs could be placed at risk by allowing personal importers to undercut existing licensed dealerships which are compliant with consumer protection legislation and applicable Australian vehicle standards.

Manufacturers have already made it clear that consumers who choose to import their own new vehicles will not be covered by new car warranties in Australia. With over 67 manufacturers offering over 400 different model variants, currently, Australia is one of the most competitive car markets in the world. Compare this with Japan where there are fewer than 40 manufacturers in the marketplace. The Australian marketplace is not suffering from a lack of competition and therefore it stands to reason that there is no market failure impacting on consumers. It is important that the highest standards of professionalism, vehicle reliability and safety are maintained. For the benefit of consumers, local dealerships invest in employee training, quality assurance and provide excellent customer service.

On behalf of the automotive dealerships in my electorate, I make representation in this parliament that the government should exercise due caution before introducing legislation which has the potential to impact on local business operators. The considerations of consumer protection and vehicle safety must be taken into account in addition to the financial aspects of the transaction.