National Cabinet on Friday, 8 May 2020, after some 100 days of ‘lockdown’ – excepting essential industries, services and their employees – agreed on a national framework involving a three-step plan to achieve a COVID-safe economy and society. The goal to move through all the steps to achieve a COVID-safe economy by July of this year, restart the economy and rebuild confidence is welcome. It provides the pathway forward. In the words of Prime Minister Scott Morrison, ‘reopening the economy . . . is one of the key issues for confidence.’

Not since the 1918 Spanish flu has the automotive value chain experienced such a devastating biological disaster. MTA Queensland, as the peak body representing the interests of employers in the retail, service and repair industries, and its diverse membership has endured flood, fire, drought, storm and tempest and financial disasters. The COVID-19 crisis undoubtedly has been the most challenging for business, including the Association, to sustain viable operations and the livelihoods of staff.

In many ways, the Association was fortunate having undertaken an assessment of all the its operational and business systems and Strategic Plan’s goals following the 2019 Annual General Meeting. This meant a business continuity plan was in place and flexible to accommodate the requirements of the Health Emergency Response COVID-19 Plan (COVID-19 Plan) of hibernation, isolation and the maintenance of the automotive sector, deemed an essential industry. The plan was swiftly enacted, focusing on the health and safety of staff and putting emphasis on members and clients, their needs and plans for recovery.

Role

The Association’s priority task has been to provide members with the tools to protect and manage their businesses through the health emergency restrictions and the operational shifts needed to trade.

In the first instance, daily briefings outlined the assistance available from the Australian government’s economic stimulus and support packages, the banks’ deferred business and housing loans, and the Queensland Government’s measures to assist industry and business.

In practice these were: the COVID-19 Daily Briefings commencing March 20 and now numbering almost forty editions which detailed the essential information and broad industry insights forwarded directly to members; three virtual Zoom meetings to explain government economic stimulus and support packages and to provide a platform for questions; and the MTA Queensland website resource centre which detailed all government, agency and industry advice. This was well used, registering over 8,000 pageviews of COVID-19 content over a two-week timeframe.

Underpinning the daily briefings was the extensive membership engagement to hear firsthand views and requirements and provide advice when necessary. The primary concern of members related to workplace relations issues. These concerned the livelihoods of staff and their retention under the JobKeeper package and changes to the Fair Work Act to accommodate workplace flexibility. Our workplace relations team diligently responded to all queries and provided expert and timely briefings and advices.

Although designated an essential industry and able to trade, the cost of COVID-19 to the automotive sector is enormous. This is reflected in the official Australian Bureau of Statistics and bank data released to advise on consumer spending and the viability and finances of industry. State and regional media highlighted the enormous negative financial effects on automotive businesses and staffing arrangements. Many automotive trade businesses have kept their doors open with skeleton staff to keep the brand alive but with ‘dismal financial returns.’ Media outlets have sought interviews on the impact of the COVID-19 restrictions on the automotive sector particularly in reference to the lowest motor vehicle sales since 2009 – the height of the global financial crisis – and the latest sales results which represented the 24th consecutive month of negative growth for Australia’s new motor vehicle industry.

Advocacy

From the time the Australian Health Sector Emergency Response Plan for Novel Coronavirus was activated at the end of February 2020, the Association was in regular dialogue with industry stakeholders advocating the essential service role of the industry in maintaining supply chains, logistics and public service. Overall, the intent expressed in representations about the needs of the automotive industry as an essential service has been reflected in policy decisions.

Our pre-budget submission to the Federal Treasury for the October 2020 budget and Queensland’s October election policy initiatives will centre on growth and productivity to generate profit and confidence for the automotive value chain. Specifically, the imposition of new levies, taxes or fees to pay for the cost of economic stimulus and program and support packages during the hibernation and isolation phases of the COVID-19 Plan will be opposed. It is pleasing that the Federal Government has indicated it will resist increasing taxes to help the economy recover from COVID-19 and focus on tax incentives to drive business investment, a paring back of environmental approvals and the overhaul of industrial relations.

The way forward

Premier Annastacia Palaszczuk’s three-stage plan for recovery commencing 15 May detailed the easing of restrictions through to 10 July provides a careful and sustainable path back out of the COVID-19 crisis. Our focus now shifts to recovery as members take a safe and steady approach to establishing a functional business that supports clients, the public and the economy. Essential will be confidence to rebuild, and our job will be to ensure our members have access to the best advice and information on which to recommence their businesses.

The pathway forward will not be easy. Members and clients in conversation with me have spoken about how they have dealt with and fought on to keep their doors open so that they would be in the best recovery position. Others closed their operations and recognise that the recovery process will be difficult. There has been some remarkable stories of resilience, transformation, adaptation and creative innovative responses to maintain businesses and service niche markets. Some automotive chain businesses incurred significant financial losses in specific sections of their operation but managed to capitalise on a strong output in other areas to minimise losses.

As the economy reopens, the focus will be on the training and upskilling of workers so that businesses are able to employ them, restore their positions and to increase their hours. For the automotive value chain, the MTA Institute will be there to provide employers with apprentices and trained workers equipped with knowledge of latest technologies and industry requirements.

And the last thing

The last three to four months has been a learning curve demanding that government, business, industry, services and citizens adapt to change caused by the biological disaster. We as a nation succeeded and the automotive value chain as an essential industry is part of that success. Now, we must rise to the next challenge to build economic confidence and momentum in a changed world. MTA Queensland will contribute to Team Australia’s efforts to restore normality, economic stability, and business and consumer confidence.

Importantly, as we have done for the past 90 years, our priority remains service excellence to our members and strong advocacy to government for recognition and maximum support so that the automotive value chain may prosper, employ and serve to advantage the economy and the nation.

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’.