THE reconstructed Australian Automotive Dealer Association (AADA) almost fell over a year ago but was saved by injections of cash from Motor Trades Association Queensland (MTAQ).

However, its subsequent success in signing up dealers has now put it in a position to expand its secretariat to add more fire power to its policy and advocacy roles, AADA chairman Terry Keating told the AADA’s national dealer convention in Melbourne.

The new AADA has been in operation for three years, since it broke away from the Motor Trades Association of Australia under the guidance of some large dealers. It was previously known as the Australian Automobile Dealers Association.

The association’s near-death experience was revealed by Mr Keating when he welcomed delegates from around the country for the convention.

“A year ago you could have said we looked like we were in a questionable position and, without the very substantial financial support of the MTAQ, that would have been absolutely true,” he said.

“They got us going and we’ve reached a position where we have been able to repay all that money to them with the exception of a $200,000 grant that they gave us, and we want to acknowledge that. MTAQ saw enough value in this organisation to give us a grant of $200,000 and we are very grateful for that.”

Mr Keating told the convention the AADA would continue to fight against the proposed changes to vehicle import laws that could allow up to 30,000 new vehicles to be imported by private individuals.

“There are a lot of people who want to get a cheap entry into our business and would like a piece of the action and don’t necessarily want to put in the time and the effort that our members have.

“Our job, I guess, is to be the goalkeeper and to keep them out.”

Mr Keating said the personal import plan did not make sense for the government or for dealers.

“Whilst our friends in Canberra say that there are only going to be 30,000 cars each year or thereabouts, if you do the mathematics on 30,000 vehicles – and if you make the assumption that it doesn’t make any financial sense at all unless the price is at least in the middle to high $100,000 price bracket – we are talking $5 billion worth of sales volume that will be lost to this industry in this country.

“There will be a diminution of GST for our federal government. They have terrible financial problems but this doesn’t seem to worry them.

“There’ll be a lessening of the luxury car tax they collect and of course there will be the profit made on that $5 billion. All of that profit won’t be taxed in Australia and the taxes will be spent in the UK or Japan.”

He said that, while the AADA in collaboration with the Federal Chamber of Automotive Industries (FCAI), appeared to have made some progress on the issue, the danger was not yet averted.

“We hope common sense might prevail there and we hope that this issue will disappear off the table.

“I think we need to be ever-vigilant on the personal importation issue because there are people who will keep pushing this agenda. If they get it for one year, it’ll become three and then five and so on.”

Mr Keating said the AADA membership now included every dealer in Australia selling more than 9000 vehicles a year and some below that level.

He said the AADA was also talking to several of the smaller marques selling expensive vehicles. He said these marques stood to gain quite a lot if the campaign against parallel imports succeeded as the smaller marques would be the main beneficiaries.

He said the AADA’s stronger financial position meant it could step up its efforts on several fronts.

“With our enhanced financial position, we will be able to devote more resources to that area of policy and advocacy so that we can be more committed to getting better outcomes for the future.”

He said membership of the AADA was an insurance policy for dealers.

“What we do is probably like an insurance policy on your balance sheet. When you think what your business is worth, not only on dollar numbers, but in the work you might have put in over a decade, or two or three or four, and you’ve got this business built up which is probably your retirement fund and superannuation, we think you are entitled to be protected on that.

“The AADA will and does have the ability to give you the best protection you are likely to get, absolutely at the best price.

“That protection is from policies that are ill-considered and regulations that are less than well considered. Our primary objective is to protect you to the best of our ability.”

By Ian Porter