nick xenophon 2
Bruce Newton11 Feb 2016
NEWS

Parallel imports: Senators taking sides

ALP mulling its policy on private car imports; Xenophon opposed, Muir in support

The federal opposition is not expected to finalise for at least 10 days its attitude towards the government’s proposal to allow parallel importation of new and near-new vehicles into Australia from 2018.

Australian Labor Party (ALP) support would mean any legislative changes required to the Motor Vehicles Standards Act would gain a clean passage through the Senate, ensuring the proposal would come to fruition.

But if the ALP decides to oppose parallel importing, the coalition government would require the vote of the Greens or at least six of the eight independent and minor party cross-bench Senators to get its legislation voted into law.

The ALP’s response to the changes announced on Wednesday by Minister for Territories, Local Government and Major Projects, Minister Paul Fletcher, is being co-ordinated through the office of shadow infrastructure and transport spokesman Anthony Albanese.

“We are examining the proposals and consulting with stakeholders,” a spokesman for Albanese said. “We haven’t been seen legislation so it’s hard to know what we are doing until we know the precise details of the proposals.

“So what we are doing is taking briefings from the government about the details.”

Albanese is expected take a recommendation to caucus Tuesday week after consultation with other relevant members of the opposition, including spokesman on innovation and industry Kim Carr.

Perhaps significantly, Carr spoke out against the parallel importing proposal when door-stopped in Canberra on Wednesday night.

“What the government’s proposing are measures that they themselves say will not produce substantial reductions in price,” Carr said.

“But there will be substantial risk to consumers, a significant risk to employment, enormous safety concerns to others who are using Australian roads.

“All of that will be involved in what this government says is a freedom of choice issue. It’s got nothing to do with freedom of choice.

“But it’s got everything to do with the ideology of this government, which seems to have very little regard for consulting people who actually know something about the way in which this industry operates.”

Over on the cross-benches, South Australia Senator Nick Xenophon is definitely on the negative side, arguing the Punch Corporation bid to purchase Holden’s Elizabeth plant  and keep building the locally designed and developed Commodore in production would be threatened by parallel importing.

Xenophon has been Punch’s most vocal supporter in its bid to take over Elizabeth, while he has also backed the local start-ups Ethan Automotive and Red Automotive Technologies.

“The reason given for the parallel importing rules being let go is because they (the federal government) are saying there won’t be a car-making industry in this country after 2017 despite the fact that the prime minister and the industry minister have given very supporting comments in relation to that, or giving support for auto making to continue.

“I also don’t understand why the coalition wants to pick a fight with thousands of small businesses around the country and their employees.

“I will be doing all I can to reject these moves when legislative changes and regulatory changes are put up before the senate. This is important for the sake of consumer protection. It’s important for the sake of jobs in this country.”

But Senator Ricky Muir of the Motoring Enthusiasts Party obviously doesn’t buy that argument.

He has welcomed the changes, stating as fact in a press release that Australia “will no longer have any local vehicle manufacturers” after 2018.

“I believe that the proposed changes in relation to personal importation of new and near-new cars and motorcycles from other countries with standards comparable to Australia’s will potentially help drive down the overall cost of new vehicles in Australia by creating competition in the new vehicle market,” added.

“With potential competition in the new vehicle market, there is a chance that the age of Australia’s fleet could actually be reduced and allow more people access to more modern, efficient vehicles, with up-to-date safety technology.

“I commend the government for this announcement and look forward to continued discussions with relevant stakeholders and the government in the lead-up to legislation being presented to parliament.”

Related Reading:

"It’s official: Australians will be allowed to bypass car dealers and directly import new and near-new cars directly from Japan and the UK from 2018, following the end of local car manufacturing in 2017."
"It states individuals will be limited to importing right-hand drive vehicles that have travelled 500km or less and are less than 12 months old at the time of application."

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Written byBruce Newton
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