June 2019

It is the that time of year when we take the opportunity to stocktake, to reflect on previous activities and goals gained and lost, and forward plan for next financial year’s budget and commitments. The automotive value chain over the past three years has been beset by technological and digital challenges impacting business operations, skill demands and differing consumer sentiments. It has been the foresight of successive MTA Queensland Boards with the vision to position the Association in the vanguard with strategic reforms and policies to transition the motor trades through the revolutionary technological and digital changes. Credit is due to the corporate office for delivering on the Board’s decisions encapsulated in the Strategic Plan.

The challenge now is to stay the course and not waiver in pursuing understandings of the emerging technologies, business models and services that inform members of current and future innovations and industry developments. We’ll continue to build on the current stakeholder collaborations which include government agencies, academia, corporations on the broad range of industry issues and factors that will influence decisions relating to mobility and business operations.

Vital is the advocacy on the viewpoints, policies and issues of members to influence considerations or decision making relative to the motor trades, which the Association has done for some ninety years. This aligns with a central MTA Queensland constitutional object ‘to advocate, advance, protect the interests of employers connected with the motor vehicle industry and associated trades or businesses in Queensland.’ Successive MTA Group scorecards indicate that this goal is being achieved. I must add too, the profile of the Association has increased exponentially judging from website social media interest and the broad range of invitations to participate in industry panels, fora, roundtables and conferences.

For the upcoming financial year, the emphasis will be to increase corporate office interaction with members in their businesses and deliver service excellence. This aligns with the priority strategy under the 2019-21 Strategic Plan where the core of the Association is its membership. I am pleased to say that within the corporate office there is the culture that recognises members and clients as that core.

Membership is decentralised and diverse. In a period of technological and digital change and challenging economic and environmental circumstances it is essential to know and understand the views and requirements of individual members. This must be beyond that provided by Divisional Committees, or visits from Area Managers or those who seek advice on issues that range from licences, training or industrial relations. In the coming year, one-on-one consultations or interactions with individual members will be increased to enhance the relationship and information between the corporate office and members. This will build on the individual contacts we had with our Townsville region membership who endured the recent monsoonal flood. Additionally, the conversation with members will allow us to hear views on the services provided by our corporate partners.

I draw members attention to Kellie Dewar’s Viewpoint, where she advises that the MTA Queensland has been selected as one of fifteen industry associations designated as Small Business Digital Champions under the Australian Government’s Small Business Digital Champions Project. Integral to this project is the one-on-one interactive services to discuss digital resources.

Challenges and Opportunities

Recently I visited the Gold Coast to meet with Telstra personnel to understand the connection to 5G technology and its application to autonomous/connected motor vehicles and industry in general. The electrification of motor vehicles (EVs) whether it’s battery electrics or plug-in hybrids, each EV car needs to be connected to the web. This maybe to monitor battery levels and charging status, searching for charging stations and smart route planning. 5G technology has the capacity to streamline the existing ‘clunky’ connections ensuring motor vehicle safety and efficiency. Further discussions will follow with Telstra in the near future.

In September 2018’s from the desk of the CEO, I mentioned the Association was member of the Queensland Electric Vehicle Committee (QEVC) at the request of the Minister for Transport and Main Road Mark Bailey. Recently, the Committee met for the second time. Under discussion was the ‘state of play’ document developed by the department to provide background information on EV uptake – both local and nationally – and QEVC’s priorities. I share with members some interesting data circulated:

  • EVs in the government fleet are targeted to double each year, to 288 electric vehicles by 2022. This effort will increase the number of electric vehicles available in the used EV market over the coming years, as these government vehicles are auctioned off.
  • The registration fee for fully electric passenger vehicles registered in Queensland is $298.30 for 12 months – excluding compulsory third-party insurance.
  • Registration duty for electric and hybrid vehicles (under $100,000) is set at 2% and receive a 1% discount when over $100,000.

The Queensland Automotive Dealer Division Chair James Sturgess, at the last MTA Board meeting, briefed Directors on the energy solutions and the financial benefits accruing to businesses from renewable power sources. He cited his dealership’s investment in a solar and smart battery rooftop power station from a leading Australian renewable energy engineering company providing clean energy solutions. The outcome of the solar panel system utilising roof space, and with a lease secured by a power purchase agreement, was cash flow positive from the first day. To investigate options for industry around reduced energy cost and generating and distributing renewables the Board agreed to pursue the initiative.

The state bodies in each of the jurisdictions have issues in common relating to technological and digital transformations, mobility, skills delivery and demand and the proposed retail automotive industry code of conduct. The general practice is to collaborate when possible to discuss issues pertinent to the automotive value chain. Recently, I met with the Victorian Automotive Chamber of Commerce (VACC) and MTA South Australia. Meetings are being scheduled with MTA New South Wales, MTA Western Australia and the Northern Territory.

To emphasise the policy priorities addressed to the major political parties prior to the federal election, I’ll be seeking meetings with key cabinet and shadow cabinet appointments. The policy areas in which there is high interest relate to skills demand and the training regime. The policy tendency is for private RTOs to be submerged within the Vocational Education and Training (VET) framework, yet they do the heaving lifting. For example, Technical and Further Education (TAFE or public providers) received around 72 per cent of government funding in 2017 and trained about 49 per cent of total government-funded VET students. Non-TAFE providers received about 28 per cent of government funding and trained just over half of government-funded students. Other issues to be pursue will include the development of the industry code of conduct and the franchisee agreements between dealers and manufacturers.

And the last thing

The MTA Institute (MTAI) Board of Directors Chairman Ian Lawrence will retire on 30 June 2019, having presided over the Board for almost five years. His stewardship coincided with significant policy reforms within the VET sector and automotive technology changes requiring the training curricula to meet the demands of both students and employers. The MTAI was the beneficiary of his entrepreneurial knowledge and leadership of large educational businesses. Ian’s valued service, leadership and outstanding contributions will be recognised following next Board meeting when there will be a special farewell function.

The MTA Queensland Board appointed Rod Camm to the role of MTAI Board of Director’s Chairman which he will assume from 1 July 2019. Rod is professionally recognised for leadership across international, national and state VET systems. His solid credentials include experience in policy development and tertiary education leadership and operating at the executive and Chief Executive Officer (CEO) levels of government agencies, statutory bodies, government owned corporations and private sector organisations. His CEO experience includes organisations such as the Australian Council for Private Education and Training, Skills Queensland and Construction skills Queensland. We welcome Rod and look forward to his stewardship.

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’.

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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.