Tony Weber

THE federal Chamber of Automotive Industries (FCAI) is claiming that Australia’s consumer watchdog has overstepped the mark in the parallel-imports debate and is now playing a role in the politics.

FCAI chief executive Tony Weber told GoAutoNews Premium that the Australian Competition and Consumer Commission (ACCC) was “a regulatory policeman, not an organisation involved in the politics of the country.

“Its statements are completely contrary to that of the federal government which spelled out the ability for individuals to privately import new cars – not for the benefit of businesses.”

Mr Weber was responding to comments made during a speech by ACCC commissioner Roger Featherston at the Australian Auto Aftermarket Conference in Melbourne in late April and endorsed by ACCC chairman Rod Sims in a follow-up op-ed article in the commentary pages of The Australian newspaper.

The proposal to allow individuals to import one low-mileage new car from the United Kingdom or Japan at the rate of one every two years was announced earlier this year by the federal minister for major projects, territories and local government Paul Fletcher.

It has become a contentious issue marked by varying interpretations of the proposal, misinformation by Liberal ministers, accusations of heavy lobbying by New Zealand parties and now industry confrontations.

At stake is the profitability of Australia’s $17 billion automotive dealer network and the secure employment of 67,000 Australians.

In his speech, Mr Featherston said the proposal was about fair competition and put the onus firmly on the buyer of any imported car.

“The ACCC sees these reforms as good for competition and for consumer choice,” he said.

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“Consumers should be entitled to weigh up all the relevant considerations and decide whether personally importing a car is right for them, or whether sticking to the established system of dealerships suits them better.”

Mr Featherston took a swipe at the FCAI, calling the chamber “far fetched” for saying consumers could end up with an unsuitable vehicle for Australian conditions.

Mr Weber countered by saying Australia had 400-plus car models and competition didn’t need to be open any further.

On the subject of unsuitable cars for Australian conditions, Mr Weber said every Toyota Camry or Corolla sold in most markets around the world was different.

“It has different oils, different radiators, different tyres and so on,” he told GoAutoNews premium.

“What about the engines? They’re different because every country has different fuel quality. Australia’s fuel quality is poor – it’s rated 63rd in the world alongside Mexico for sulphur content. We have different fuel and we need cars and engines made for our conditions.

“It can come down to something as simple as getting an updated map for the sat-nav system or being given an owner’s manual written in English.”

Mr Featherston also indicated Australian businesses could act on behalf of consumers by importing cars – a move he said would make warranty protection “more readily available than if individual consumers are required to purchase their vehicle directly from an overseas entity that may have no connection with Australia.

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“The proposed laws will only have a negative effect on established Australian dealerships if their prices are not competitive, or if consumers cannot purchase the specifications of vehicles they want,” he said.

Mr Weber said that was directly against the spirit of the proposal that aimed to allow individuals, not companies and businesses, to import specific vehicles.

He also said there was concern about the amount of lobbying being done to ensure the proposal was passed.

“There are some people in New Zealand who have been through the grey-import and parallel importation of cars who are positively salivating at the prospect of dumping cars onto the Australian market.

“This would be a huge money spinner for them. But the consumer, like in New Zealand, will be left with cars without service and repair backup and operators who vanished in the night.”

The proposal is expected to be discussed in federal parliament this year but Mr Weber said “there is still a lot of work to do” and said he was unable to estimate a time frame for for the battle ahead.

By Neil Dowling