Government flags appetite for parallel imports

The federal government has taken the next step to potentially opening the Australian marketplace to unfettered private imports of new and used vehicles.

Jamie Briggs, Assistant Minister for Infrastructure and Regional Development, yesterday released an Options Discussion Paper regarding the review of the Motor Vehicle Standards Act 1989 (MVSA).

The Act -- which prescribes the regulations vehicles must satisfy (Australian Design Rules), and therefore effectively which cars can be sold Down Under -- is the main barrier to uncontrolled imports of new and used vehicles.

Briggs announced terms of reference for the review back in January. Now, the government has further detailed the timetable for the review, including five public workshops (see below).

While it does not mandate the status quo must change, the Options Discussion Paper follows the recent Productivity Commission recommendations to scrap or modify the MVSA to open up the local marketplace to more 'grey' imports.

An extract of the 76-page document prescribes policy options to be considered in submission responses.

The full paper outlines eight potential ways forward for the MVSA following the review. They are (quoted directly from the document):

1. No changes to the legislative framework (the base case);
2. Repeal the legislation;
3. Modernise the legislation language, clear up definitional issues and resolve legislative gaps;
4. Strengthen the legislation, modernise compliance and enforcement approach, amend scope of legislative coverage;
5. Full harmonisation with international standards;
6. Streamline new vehicle certification;
7. Reduce the barriers to personal importation of new vehicles and the importation of quality second-hand vehicles; and
8. Reduce/consolidate/remove the concessional [low-volume compliance] schemes

Assistant Minister Briggs stated on release of the Options Discussion Paper that the review: "will seek to ensure we strike the balance between appropriate safety standards, in line with international best practice, and consumer access to vehicles at the lowest possible cost, particularly given the end of vehicle manufacturing in Australia".

Briggs stated: "The paper also looks closely at personal importation of new vehicles and other opportunities to lower the average age of Australia's car fleet while increasing the competitiveness of the Australian car market.

"Any potential changes to the Act will be comprehensively examined in close consultation with stakeholders, and I strongly encourage interested parties to put forward their views."

Feedback from submissions and the workshops will, says the assistant minister, inform the preparation of a Regulation Impact Statement to "carefully examine the road safety, environmental and consumer protection impacts of all policy proposals" for consideration by the federal government.

Federal Chamber of Automotive Industries (FCAI) responded to the Options Discussion Paper, stating the MVSA was "a complex piece of legislation which covers a wide range of issues that affect the import and regulation of motor vehicles on Australian roads".

It said it and its members would "thoroughly review the Discussion Paper so that it can adequately advise the government of any implications the options proposed may have on Australian consumers".

Quoting the oft-stated tenet that Australia has the most competitive new-vehicle market in the world, FCAI Chief Executive Tony Weber cited the organisation's recent IHS Automotive study of comparative new car pricing, presumably to indicate no changes were necessary.

He also stated: "manufacturers of vehicles made for sale in Australia have established comprehensive service environments, which provide consumers with a high-level of support. This includes the significant investment in the tools and labour force training needed to maintain a modern vehicle".

“The FCAI and its members will respond to the Discussion Paper and participate in public workshops,” Weber stated.

2014 Review of MVSA Workshops:
Sydney (Parramatta), Tuesday 23 September — afternoon
Brisbane, Wednesday 24 September  — morning
Melbourne, Friday 26 September — morning
Adelaide, Wednesday 1 October — morning
Perth, Thursday 2 October — morning

More information: www.eventbrite.com.au/o/mvsa-review-6940182573