Labor has bolstered its support for an automotive industry code of conduct.
Member for Oxley in Brisbane’s south-west, Milton Dick has told the House of Representatives a future Shorten Labor government would commit to an automotive code, citing the relationship between dealers and automakers was “out of control”.
Dick tells parliament the 85% family-owned dealerships employ too many people to allow the “power imbalance” to continue.
“We need to make sure that our automotive dealers get a fair deal and that they can operate as family businesses, as small businesses,” he says.
“New car dealers make a huge contribution in my electorate of Oxley alone, including almost $400 million in sales, 420 direct employees and a further $100 million contribution to the local economy alone,” Dick explains.
The Labor MP says the country’s dealerships do more than just sell cars and should be protected.
“New car dealers are private or family-owned business who are valued members of the local community and who often sponsor community organisations and sporting events,” Dick says.
“The power imbalance between multinational manufacturers and our Aussie car dealers, many of
whom are small businesses and family-owned firms, has gotten out of control,” he continues.
Dick has backed shadow assistant treasurer Andrew Leigh’s comments at the Australian Automotive Dealer Association convention which called for the auto-industry code and a secure scheme for data sharing between OEMs and aftermarket repairers.
“I was proud to work with Labor’s shadow minister for competition and productivity, the member for Fenner, on this policy announcement,” Dick adds.
“Labor is proud to be working with the AADA and new car dealers to provide a level playing field.”
Federal Chamber of Automotive Industries chief executive Tony Weber tells AutoTalk the code must tread carefully not to “over regulate”.
“There is a concern that over-regulating the relationship between manufacturers and dealers will be counter-productive,” Weber says.
The FCAI maintains that a retail franchise code is already in place and could be ‘better utilised’.
“I’ve only heard anecdotal evidence about the current retailing code not working for dealers,” he says.
“The question is whether the existing framework is sufficient – I think it is, it may just not be used in the most effective way.”
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