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Sandringham
by John Mellor
| 23 Aug 2023 | | General News - Page 28 - 339 words - ID 1915578258 - Photo: Yes - Type: Car Review - Size: 326.00cm2 | |
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Franchise code review should bring in farm machinery, motorcycle and truck dealers
AUTOMOTIVE lobby groups have laid out their plans on what they hope the recently announced review of the Franchise Code of Conduct will achieve with special emphasis on including the farm machinery, motorcycle and truck dealers.
The fact that these dealers were not included in the code has been the subject of numerous and frequent representations from the industry to the federal government and the fact they were not included in the code in the first place has been described as a "terrible oversight".
In a memo to members, the industry policy advisor of the Victorian Automotive Dealer Association (VACC), Michael McKenna said the Motor Trades Association of Australia (MTAA) will be making a submission on behalf of its franchise dealer members that will have a particular emphasis on the introduction of extended franchising code of conduct protections for commercial vehicle, motorcycle, farm machinery and industrial machinery dealers.
Mr McKenna said the previous government had in effect created two regulatory regimes for dealing with automotive franchise dealerships. One that is comprehensive, the other which is not.
"This outcome is disturbing as the infrastructure requirements, capital expenditure, and business model of the truck, farm, motorcycle and farm and industrial machinery dealers left out of the legislation is identical to that of a new car dealer, yet they have less regulatory protection. We hope this changes after this review." The review is to be conducted by Dr Michael Schaper a former deputy chair of the Australian Competition and Consumer Commission and former ACT Small Business Commissioner.
The VACC said the industry welcomed Dr Schaper's appointment. It said Dr Schaper "is well known to the VACC and MTAA and has extensive experience with the franchising and broader small business sector".
The CEO of the Australian Automotive Dealer Association, James Voortman, said that "Dr Schaper brings the necessary expertise and experience to this critical review of Franchising Regulations and the Code of Conduct".
Caption Text:
James Voortman
Michael McKenna
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