October 2020

Similar to other State industrial organisations in the pre-election period, MTA Queensland has been proactive in advocating its policy priorities to the major parties in anticipation that these may form part of their manifestos. It is a good time to do so. The Government and the Opposition parties are willing to listen and openly discuss the dominant issues for feedback.

Pre-election meetings

A priority issue for MTA Queensland is the automotive skilling needs to meet the future workforce demands of the industry and to support the Queensland economy. For this purpose, we met with the Minister for Employment and Small Business and Minister for Training and Skills Shannon Fentiman. Throughout the year we have worked closely with the Department of Employment, Small Business and Training providing advice on the automotive skilling needs and the funding of qualifications to appropriately meet the demands of industry. We sought to gain an understanding of the State approach to the Australian Government’s JobTrainer program aimed at school leavers and those looking for work. It provides $500 million for vocational education and training courses – conditional on matching funding from state and territory governments.

Since that conversation with Minister Fentiman, the Federal and State Government have approved a significant investment in the provision of increased access to free or low-fee skills training for school leavers and job seekers through the JobTrainer Agreement. Under the Queensland Agreement, $201 million (Australian and Queensland Governments each contributing $100.5m) will be invested in the State’s vocational education and training (VET) sector. This outcome is welcomed and provides certainty. We still have residual concerns about the funding supply chain which substantially favours the public sector. It is our position that a better funding model should apply, recognising the role of registered training organisations in the development and provision of skills. For example, our MTA Institute, a registered training organisation, is responsible for training and skilling almost one-third of the total automotive apprentices in Queensland.

I met with the Opposition and Liberal National Party Leader Deb Frecklington to advocate our training, transport, mobility industry, and business policy positions. A priority issue canvassed was her party’s plan to transition from the emergency fiscal measures amid the pandemic shock towards the goal of a COVID-Safe economy capable of providing the State’s services, business programs and the debt obligations. Details of that plan will be enunciated during the election process, but it was clear from the Opposition Leader’s comments that the priority was job creation and economic security for Queenslanders. Her comments suggested there is understanding that the business sector is seeking a plan that enables certainty and confidence to invest and employ. I raised automotive skilling needs and workforce demands and our concerns with the VET funding model for registered training organisations. As was expected, support was given to the Australian/Queensland JobTrainer Agreement.
As is the practice applying to all general elections, the automotive industry’s policy priorities will be forwarded to the leaders of the major political parties and to their administrative wings.

Biofuels policy

We met with the Department of Natural Resources, Mines and Energy to discuss the biofuels mandate. Our Service Station and Convenience Stores Association Division, when the biobased petrol mandate was introduced on 1 January 2017, were reluctant supporters. It was recognised, however, that the biofuels policy formed part of the government’s 2015 election manifesto. The mandate set a minimum of three per cent of the total volume of regular unleaded petrol sales and ethanol blended petrol sales (such as E10) by liable fuel retailers be sustainable bio-based petrol. Previous published data suggested that the ethanol volume sales were close to being accomplished. From 1 July 2018, the biobased petrol mandate increased to 4 per cent and the understanding is that on average the ethanol mandate has not been achieved and that total volume is less than 3 per cent.

We raised with the Department concerns that there had been no published responses or recommendations from the July 2019 review of the biofuels mandate to which we had made a submission and detailed several reservations. These included the costs of upgrading tanks, pipework, and dispensers to be ethanol blended fuel compatible or the installation of new tanks etc., to comply with the legislation. In addition, we referenced the compliance and reporting costs each quarter for all fuel retailers (non-major and major). Fuel reporting is required as it is this data that determines eligibility and overall volumes for assessing the percentage of biofuels sold. It was suggested there was an option to report annually. Overall, it is disappointing that one year on from the review of the mandate, there has been no published report to inform of its status or any recommendations.

Fair Trading Meeting

Our licenced motor dealers, on a regular basis, raise the issue of operators selling used cars from backyards, or on Facebook or Gumtree without a licence. There is also the matter of those posing as private dealers who may be licensed motor dealers selling cars to avoid compliance obligations such as the Goods and Services Tax and other fees. In both instances, the operators fail to disclose to a potential buyer or seller of a vehicle if they are a licensed motor dealer or registered sales person.

In a recent meeting with Fair Trading officers, we drew attention to these two practices which caused consumer angst when they discovered there was no cooling-off period, statutory warranty or that the vehicle was free of any financial encumbrances. The practices were harming the standing of licensed motor dealers with consumers.

We acknowledged that Fair Trading Inspectors were active in the field, checking licences to operate as a dealer or a registered salesperson but were of the view that consideration should be given to cap the number of vehicles sold by a private dealer. At present the number is unlimited. The circumstance was given of a licensed dealer buying cars at an auction then selling them privately to avoid compliance obligations and oncosts. The Association’s Automotive Remarketing Division is of view that the number of sales by a private dealer should be limited to four car sales per year. There will be follow up discussions on this proposal with Fair Trading officers.

And the last thing

Youngcare is MTA Queensland’s charity partner. It has been so since 2017 and total donations over the years are in the vicinity of $36,000. These derive from various events including funds from the auction at our Industry Awards Gala. This year, that signature occasion was cancelled due to the COVID-related uncertainties. Similarly, Youngcare’s fundraising endeavours were withdrawn, causing funding concerns for their work. With its volunteer supporters, Youngcare instigated their first ever ‘Giving Day’. It was held on 24 September. Five of our MTA Queensland staff volunteered as donation canvassers for a 24-hour telethon. Boosting the telethon was the generous undertaking of Youngcare’s Corporate Partners that every dollar donated would be matched.

The target set for the 24-hour telethon was $300,000. The response from the public was overwhelmingly positive. A heartwarming total of $424,307 was raised over the 24 hours for Youngcare’s work in providing for young people with high care needs. Members can continue to donate at www.charidy.com/youngcare.

Until next month, as Henry Ford, the industrialist and the founder of the Ford motor company said, ‘execute ideas with enthusiasm . . . as it is the bottom of all progress’.

8 October 2020

© Copyright - MTA Queensland

MTA Queensland acknowledges the traditional owners of the land on which we live and work- the Yugambeh and Yuggera people. We pay our respects to elders past, present and emerging. In the spirit of reconciliation, we will continue to work with traditional custodians to support the health and wellbeing of community.