Geoff Gwilym

The Victorian Automobile Chamber of Commerce (VACC) has put its weight behind plans to privatise part of the state’s transport department but cautions against interference on policy matters and services and fee changes.

The Victorian government has announced that the Registration and Licensing (R&L) division of VicRoads would be placed into private hands.

In a letter to members, VACC CEO Geoff Gwilym said he supported any changes to VicRoads that would be beneficial to consumers and industry.

“However, we would expect absolute guarantees in regard to improved service delivery and fee capping,” he said.

Mr Gwilym said the VACC, as the peak body representing the automotive retail industry in Victoria, has a vested interest in ensuring the efficiencies and service delivery of the VicRoads R&L system.

He said VACC bi-monthly meetings with VicRoads R&L had proven productive “resulting in many benefits for industry and consumers, most notably the implementation of flexible registration”.

“The VACC also meets periodically with C-Suite personnel from VicRoads,” he said.

But Mr Gwilym added that in previous years there had been a lack of ongoing investment by state governments to completely overhaul the current R&L system.

“This has had a negative impact on industry. The much-hyped RandL project was abandoned in 2011, 2012 and 2015, and ultimately VicRoads has relied upon a legacy system for vehicle registration and driver licence purposes,” he said.

“The current system is unreliable, with outages suffered almost weekly and constant system shutdowns for maintenance and software upgrades.

“In 2017 there was a period of 14 days during which the system was completely inaccessible.

“No new or used car was able to be registered during this time, resulting in major disruption and financial inconvenience for industry and consumers.

“Taking this into consideration, VACC recognises that private investment may result in improvements.”

Mr Gwilym said the VACC now must ensure that the Victorian government safeguards future R&L policy direction and outcomes “and learn from past, failed contracts, albeit in other areas.”

“As a key stakeholder, VACC will maintain direct consultation with government before any legislative, regulatory or policy position is considered,” he said.

“Policy-makers need to approach industry recommendations pragmatically, as well as assist in the reduction of red tape. It’s in everybody’s best interest.

“Proper consideration must be taken before any new engagement is considered, and this includes recognising the knowledge and value of personnel within the current VicRoads arrangement.

“No doubt there are areas and opportunities for financial and service improvement with regards to VicRoads R&L. However, changes cannot be made at the expense of service delivery and industry.”

Mr Gwilym said VACC has a positive relationship with the Victorian government and has written to convey this industry position.

By Neil Dowling