News, Regulations

THE chief executive officer of MTA NSW, Stavros Yallouridis, has called on the government to redress what repairers see is an imbalance between car insurers and the vehicle body repair industry.

While acknowledging the proposal by Labor to address the power imbalance between OEMs and their dealers, and to address the potential for forced over-stocking of dealerships that could flow from the NVES, Mr Yallouridis told GoAutoNews Premium that a power imbalance between the body repair industry and insurers was another critical issue that must be addressed urgently.

Stavros Yallouridis

“Insurers regularly exert excessive control over pricing, turnaround times, and even repair methodologies,” Mr Yallouridis said. 

“This undue pressure compromises the independence and profitability of repairers, threatening their long-term viability. It is a scenario I’ve witnessed repeatedly among our members and it underscores the urgency for meaningful reform.

“Our industry is primarily made up of hardworking small businesses, from repairers to service providers and dealerships, who continually navigate complex supplier agreements, restrictive contracts, and persistent pressure from larger corporations. 

“Far too often, these conditions disadvantage smaller operators, limiting their ability to compete fairly and sustainably.

“That’s why MTA NSW, through the Motor Trades Association of Australia (MTAA), has consistently advocated for strengthening the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct. 

“Currently, this code operates on a voluntary basis across most of Australia, but experience shows that voluntary compliance simply isn’t enough. We need mandatory and enforceable regulations nationally to create a genuinely level playing field and ensure fairness in all industry interactions.

“Making the MVIRI Code mandatory is essential for the survival and growth of small businesses in the automotive sector. 

“Our members are clear; the current code does not adequately address the challenges they face. Only robust, enforceable guidelines can protect their interests, safeguard their businesses, and promote transparency in industry relationships.Mr Yallouridis said that in response to industry advocacy, the federal government has now indicated it will consult stakeholders on transitioning the MVIRI Code of Conduct from voluntary to mandatory, marking significant progress toward securing enforceable protections for automotive repair businesses.

“MTA NSW is committed to actively engaging with the Federal Government to ensure these reforms deliver genuine change. 

“Our goal is to secure stronger protections and better business conditions for the automotive industry in NSW. The recent actions by the government give us reason for optimism, but our advocacy continues, ensuring these promising steps translate into real-world improvements for small businesses.

“We will not rest until fairer trading practices become the standard. The future of our industry depends on it, and our small businesses deserve nothing less,” Mr Yallouridis said.

By John Mellor

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