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28/08/2009 - WA GOVT. MUST RETHINK MONOPOLY
Without any industry or stakeholder consultation, the WA Department of Transport has introduced a regulation that requires vehicle owners to undertake an emissions test costing upward of $1,000 even if they have completed the most basic of exhaust repairs or replacement. This regulation was introduced despite the fact that there is only one, privately owned testing facility in the entire state and did so without establishing any safety net for consumers to regulate the price, quality and waiting times for tests undertaken by this private operator. The Australian Automotive Aftermarket Association (AAAA) is outraged by this poorly conceived new regulation. The AAAA is the national industry association representing over 1250 manufacturers, distributors, wholesalers, importers and retailers of automotive parts and accessories, tools and equipment. The regulation now requires any owner that replaces their catalytic converter with a generic branded part to undertake an IM240 test, however if they fit a manufacturers "genuine" branded part no test is required. This unnecessary and onerous regulation effectively creates a Government sanctioned monopoly in WA for vehicle manufacturers and their dealers and directly contravenes the Trade Practices Act. AAAA Executive Director Stuart Charity said this announcement shocked the industry. "Our members are dismayed at the arrogance exhibited by this announcement. This industry has an annual turnover of $5 billion, exports of $600 million and employs 30,000 people. In WA, it is estimated that over 2600 businesses will be impacted in some way by this new regulation". "It appears that the WA Transport Department has chosen to ignore direct advice on this issue provided by us in March 2009, which could have averted this mess" said Stuart Charity. "The industry is alarmed at this ill-conceived and unreasonable regulation". "A conservative estimate is that between 60-80 vehicles each week will need an IM240 emissions test and with only one testing station in all of Western Australia, this simply will not work". "To introduce a new policy that mandates testing with only one provider is irresponsible, it will result in delays and costs to the consumer for an unnecessary testing procedure. The Western Australian driving public has in the past experienced significant vehicle registration delays due to the limited number of inspection stations. It would appear that once again in 2009, the driving public will experience the frustration of not being able to register a vehicle due the scarcity of testing and inspection facilities". "In addition to the single testing station, it is ludicrous to require expensive testing if a vehicle owner replaces an exhaust component such as the catalytic converter with one not marked with the vehicle manufacturer's logo. The ACCC has issued clear advice on this topic to protect competition in our industry stating that the issue is not who manufactured the part/s, it is whether the part/s are fit or appropriate for the purpose intended". he said. Immediate Action Required Stuart Charity said WA Transport Minister Simon O'Brien must act immediately to limit the damage of this policy on West Australian drivers and the automotive aftermarket industry. "Given that the automotive aftermarket invests significant resources to ensure that road safety and environmental concerns are paramount in the design, engineering and performance of aftermarket products, it is impossible to understand how the industry's long term contribution could be ignored on this occasion. "We call on the Minister to immediately withdraw this ill-conceived, unworkable regulation and to engage in appropriate stakeholder consultation with a view to developing common sense laws that have the support of key industry and consumer groups," said Stuart Charity.
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