Victorian Government's safety push ignores manufacturer pleas

The Victorian Government has ignored objections by the majority of the Australian automotive industry and will push ahead with plans to introduce unique electronic stability control (ESC) laws. Despite the Federal Government already announcing plans to mandate the technology in all passenger cars and SUVs in November 2011, the Victorian Government has announced it will insist on ESC being introduced 10 months earlier.

In a document sent to its members, and seen by the Carsales Network, the Federal Chamber of Automotive Industry (FCAI) has raised its concerns over the changes, which could have a dramatic effect on the amount of cars sold in Victoria in 2011.

The FCAI document reveals that 27 car companies made submissions to the government and, of those, 23 were critical of the decision to deviate for the federal ADR requirements and timeframe.

Despite a meeting between an FCAI delegation and Premier John Brumby and the relevant ministers in early September, the Victorian Government announced its plans last week, confirming the laws will come into force on January 1, 2011.

In announcing the plan, the government claimed its focus was on improving safety, despite the new laws not covering light commercial vehicles and providing the opportunity for exemptions to vehicles not fitted with ESC.

"The Brumby Labor Government is taking action to improve our road network, reduce the road toll and provide important safety benefits for Victorian families," said Tim Pallas, Roads and Ports minister.

"The latest Australian research indicates that electronic stability control can reduce single-vehicle crashes by up to 29 per cent.

"This technology helps the driver remain in control when the vehicle starts to skid, swerve or when road conditions change. It is a sophisticated active safety feature that builds on current technologies such as anti-lock braking and traction control systems."

The FCAI document highlighted several key concerns of the organisation including the fact that the law will be made redundant by November 1, 2011. In addition, there are objections to the extra costs involved in fitting extra compliance plates for Victorian cars for only a 10 month period and the possibility that cars meeting ADR compliance will be rejected for Victorian registration.

Another FCAI concern is the state government's claims that VicRoads will have the authority to assess ESC systems that don't meet the Federal 'gtr 8' standard and approve them as long as they meet a "functional performance that is acceptably equivalent. The FCAI objected to the lack of any detail on how VicRoads will achieve this assessment.

The FCAI has already begun discussions with suitable Federal Departments and advisors and will also discuss the matter on Wednesday's meeting with the Importer's Group in Sydney.

While supporting the move for improved safety, the FCAI says in its document that it objects to the way the Victorian Government has handled this situation and the way it will devote resources to a short-term program.

The FCAI's views are backed up by the VACC, Victoria's peak automotive body, and it is calling for the government to reconsider its decision. It believes the new rules could have a negative impact on consumers, dealers and manufacturers.

"Like the Brumby Government, VACC supports any initiative to improve vehicle safety and to reduce the road toll," said David Russell, VACC Senior Manager, Government and Public Affairs.

"However, VACC is concerned about the 'go-it-alone' strategy of the Brumby Government. We feel it will cause confusion, inconsistencies and loopholes. There are likely to be impacts on manufacturers, dealers and consumers.

"The Minister has exempted light commercial vehicles from the requirements and will be able to exempt certain vehicles that meet exceptional conditions from the mandatory regulations, but we would like clarity regarding the regulatory details for those exemptions.

"Manufacturers will be affected because they plan models years in advanced. They are global operators and will not be able to amend their plans solely for the Victorian market and for a 10 month period. That means certain makes and models simply will not be available for sale in this state.

"If the manufacturers are disadvantaged: then so too are the dealers and associated retailers. Dealers have little say about the design of the product delivered to them for sale. New car dealers in Victoria are likely to be restricted if some makes and models are prohibited from sale in the State by the regulations.

"Consumers will be confused by the availability or lack thereof, of certain models and their lack of confidence in the system will force them to take their precious dollars interstate for their purchases.

"It is not too late for the Victorian Government to reconsider the impact of these regulations on the State's economy and on the implications for manufacturers, retailers and consumers."

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