MEMBERS of Parliament have been put on notice by one of Australia’s biggest employment sectors that they could lose their seats if they continue to pursue the parallel car import policy.
Car dealers and the automotive industry are being urged to band together to let their MPs know – in the lead up to the a federal election – that Australian jobs will suffer if the proposed motor vehicle importation policy goes ahead.
With support for the Coalition on a knife-edge, a groundswell of concern about car retailing jobs could sweep through the 68,000 people who work in car dealerships located in every electorate of the country and a backlash could drive the Turnbull government from power.
Those working in the car retail sector will be mindful of the ease with which the Coalition disposed of the Australian car manufacturing industry and fear that parallel imports are part of a wider plan to open up Australia to used-car imports on a massive scale.
But dealers are being reminded of their massive electoral power because of the unique position dealership businesses have in communities throughout Australia.
Dealers are being urged to contact their local members to explain the big picture to MPs who are mostly ignorant of the level of employment, tax raising and overall economicn contribution of dealerships to the economy and point out that dealers have $17 billion invested by families and local companies in their facilities around the country.
Dealers are alarmed that just as the Coalition passed car making over to car factories on the other side of the world, parallel imports would support car dealerships in London and Tokyo rather than dealerships in Australia.
Brisbane BMW managing director Martin Roller told GoAutoNews Premium that employees in the retail automotive industry needed to be told by dealers that the policy will affect jobs and that they may be affected.
He disputed claims that the proposed policy – that would allow private importation of new cars – could generate an additional 30,000 cars on Australian roads, as announced by minister for major projects Paul Fletcher in February this year.
He said Mr Fletcher’s estimate of an additional 30,000 car sales was difficult to believe given less than 30,000 cars in the $100,000-plus segment were sold in 2015.
“This will not grow the market in Australia and will not give car buyers more choice, but will just replace sales made by traditional authorised car dealers like ourselves,” he said.
“If the government wants to make prestige cars more accessible, why not just eliminate the luxury car tax?” (LCT) he said.
“That would be a lot simpler and be just as effective in growing the prestige-car market.”
Mr Roller, who is a director of Brisbane BMW, Brisbane Ferrari and Westside BMW, said his businesses employ more than 250 people and have an annual turnover of about $250 million.
He said that in 2015, these three businesses alone collected $47.7 million for the federal government in GST, LCT, FBT, company tax and withholding tax. They collected an additional $8.6 million for the state government in stamp duty, registration, payroll tax andland tax.
Mr Roller said the proposed policy would damage car retailing in Australia and will directly affect business profits and in turn affect employment.
“I have 250-280 staff. If this hurts my business, let government help explain it to me so I can explain it to any of my staff that I may have to let go,” he said.
“These people who may have their jobs affected are those in the electorate. It’s the government representatives who are putting people out of work.
“There’s no good reason for this policy and there’s not even any modelling available that shows how it works and how the 30,000 additionalcars will help Australia.
“Even my MP (federal minister for Brisbane, Teresa Gambaro) hasn’t seen any modelling.
“It’s high time every dealer jumped up and saw their local MP about this.”
Mr Roller said in a three-page letter to Ms Gambaro that any perceived benefits of Mr Fletcher’s proposed policy would be outweighed by a host of risks and exposures to motorists.
He said the policy would not reduce red tape – “in fact we think it would do the opposite”.
“As Mr Fletcher’s announcement is currently structured, these measures will largely impact the ‘top end of town’ for people wanting to buy a vehicle priced at $100,000 or more and not the bulk of Australian motorists that buy vehicles at price levels well below that,” Mr Roller said in his letter to Ms Gambaro.
“If the government are so focused on lowering car prices and increasing choice then there are a myriad of government-controlled measures that could be looked at that would not only reduce prices but increase the amount of car sales, hence increasing the overall tax revenue system in Australia.”
Mr Roller said that the Federal Chamber of Automotive Industries (FCAI) and BMW Australia “have done a good job” in fighting the policy.
“Other representations have been made to other MPs,” he said.
“We don’t have much time, with an election imminent, to get our view across to the MPs.
“Everyone involved in our industry must inform their MP that if this policy is adopted, it will change the way they will vote.”
Mr Roller said that unless the industry shows it is against the proposed policy, it may be quickly – and quietly – passed through the parliament.
“This won’t get discussed thoroughly at the high levels of government because there are other issues – such as tax, superannuation, negative gearing and so on – that is getting top billing at the moment,” he said.
“But there’s a lot of losers if it goes ahead. There may be a handful of buyers happy but those who could lose their jobs won’t be.
“To all government MPs, we strongly urge you to shelve this nonsensical policy proposal and to place your focus and agenda onto more important policies that will stimulate the economy and create jobs.”
By Neil Dowling and John Mellor
