Parallel imports for second-hand models shelved over safety concerns.

[Express]

Government scraps proposal for cheap overseas cars


Parallel imports for second-hand models shelved over safety concerns.


David McCowen
30 November, 2015




The Federal Government has dropped plans allowing second-hand cars to be imported into Australia. Photo: Graham Tidy


Car industry insiders have credited the change in Federal Government leadership for scrapping a proposal allowing second-hand cars overseas to be imported into Australia.

The Federal Government led by former Prime Minister Tony Abbott and treasurer Joe Hockey put forward proposals allowing local motorists to import new and used cars from foreign markets outside established dealer and manufacturer networks.



Car industry insiders say the government under new treasurer Scott Morrison and Prime Minister Malcolm Turnbull was more open to consultation. Photo: Andrew Meares


Automotive executives reportedly struggled to communicate with government leaders until the new Prime Minister Malcolm Turnbull and treasurer Scott Morrison took over in September.

The revised government's 52-page response to the Harper Review for competition policy dropped plans to allow people to import cheap second-hand cars.

"Following consultation as part of the review of the Motor Vehicles Standards Act 1989 and having regard to consumer protection and community safety concerns, the Government has decided not to proceed with reducing parallel import restrictions on second‐hand cars at this time," the report said.

An industry insider who did not want to be named credited the change of heart to a new culture in Canberra set in place by the Turnbull Government.

The automotive executive said the government "actually listened, and learned about the industry" rather than pursuing its agenda.

"Certainly the government is listening," they said.

Representatives from most leading car companies have worked with the government to convey safety and security concerns surrounding parallel imports.

Cars sourced from overseas markets often have a different level of standard specification to local cars, and may be missing airbags and other safety features fitted as standard to local models. The National Motor Vehicle Theft Reduction Council also said there was a "potential for very serious consequences to arise" if criminal groups could steal cars overseas and sell them locally.

While the government has ruled out second-hand imports, the introduction of new cars in parallel to established manufacturer arrangements is still up for debate.

Multiple sources within the car industry suggest the government is unlikely to introduce legislation allowing motorists to source their own new cars from overseas rather than local dealer groups, though the issue "is not done and dusted".

http://www.drive.com.au/motor-news/g...30-glbbfi.html