Government backflips on parallel imports

The Federal Government is set to open Australia’s new car marketplace to parallel imports.  motoring.com.au believes Paul Fletcher (pictured, left), the Minister for Territories, Local Government and Major Projects will announce the decision tomorrow.

If correct, the backflip comes just two months after the Malcolm Turnbull led Liberal government rejected the idea.

The proposal of parallel imports via which individuals and businesses can import new cars without the current ADR and Motor Vehicles Standards Act (MVSA) regulatory controls was part of the Competition Policy (Harper) Review.

Under former prime minister Tony Abbott, the government appeared receptive to lifting restrictions on parallel importation, as recommended by the Productivity Commission and broadly supported by the ACCC. Then in late November 2015 the Turnbull government opted not to accept the recommendation. This was outlined in its 'Response to the Competition Policy Review' .

Tomorrow's tipped announcement has already been characterised by some as "a slap in the face for the PM".

motoring.com.au contacted Minister Fletcher’s office this evening requesting an interview. No reply had been received as this article was published.

Industry sources motoring.com.au contacted this evening were unaware of the move.

Tony Weber, Federal Chamber of Automotive Industries Chief Executive refused to confirm or deny knowledge of the impending announcement.

“I can’t comment,” he said.

To date consumers and the industry alike have been vocal on the issue of parallel imports.

Lobbyists suggest it will reduce the price of new cars, however, the FCAI and other industry groups say only the buyers of the most expensive makes and models will benefit.

Official importers say parallel imports opens the floodgates for low-specification vehicles and potentially impacts safety and other aspects – both in terms of the vehicles themselves and servicing infrastructure and the like.

Photo credit: Macleay College