Second Reading Debate

Debate resumed from an earlier hour.

Mr WARREN KIRBY (Riverstone) (17:49): As I was saying earlier, the Minns Labor Government has taken up the mantle of delivering the much-needed reform that will propel the automotive industry into the twenty‑first century by aligning our laws with the current realities of the market. The Motor Dealers and Repairers Amendment Bill 2023 is a critical piece of legislation that addresses the longstanding need for reform in the automotive sector and will benefit my electorate and the State as a whole. It is for these reasons that I strongly support the bill.

Ms JULIA FINN (Granville) (17:50): The Motor Dealers and Repairers Amendment Bill 2023 implements recommendations arising out of the November 2020Final Report‑Statutory Review of the Motor Dealers and Repairers Act 2013. Under the Australian Consumer Law, purchased products and services come with automatic guarantees that they will work or do what was asked for. Motor vehicles, both new and used, come under that consumer protection. In contrast, the Motor Dealers and Repairers Act concerns the licensing and conduct of motor dealers, motor vehicle repairers and recyclers, and motor vehicle repair tradespersons.

For three years industry stakeholders have been patiently awaiting legislative reforms that will bring our automotive sector into the twenty-first century and strengthen consumer protections. The New South Wales Government has acted swiftly by introducing the bill within the first six months of its term. It is an example of the commitment of the Minns Labor Government to modernise our laws so that they are conducive to fostering a vibrant automotive industry that can continue to thrive into the future.

The automotive industry has a pivotal role in New South Wales, and the sector is the largest in Australia, boasting a total value exceeding $37 billion. I outline some key statistics that underscore the significance of the industry in our State. New South Wales leads the nation in new vehicle purchases, with a staggering 31 per cent of the one million purchases made nationwide originating from our State. This puts us ahead of Victoria and Queensland, which respectively account for 26 per cent and 22 per cent of new vehicle purchases. According to the Australian Automotive Dealer Association, which represents franchised new car dealers across the nation, New South Wales is home to 971 franchised new car dealerships, which employ over 19,000 hardworking people and contribute a total of $4.63 billion to our State economy. The industry serves as a cornerstone of employment and plays a crucial role in the wellbeing of our constituents, as most individuals inevitably engage in purchasing and maintaining motor vehicles during their lifetime.

The New South Wales Government anticipates a significant uptick in the volume of vehicles being bought and sold. In light of this, it is imperative that we implement the review's recommendations to ensure that our State's dealerships remain well positioned to meet the burgeoning demand for vehicles within our communities. The ever-evolving landscape of consumer preferences, characterised by the increasing inclination towards digital sales, coupled with the emergence of innovative technologies and the entry of new manufacturers such as Tesla into the market, necessitates a continuous adaptation of our legislation to ensure its relevance and efficacy. Feedback to the statutory review raised the following issues: the impact on the industry of the burdensome nature of some of the record keeping obligations, the classes of repair work, the relationship between insurers and repairers, the rapid improvements in technology, and the regulatory gaps around the conduct of some motor vehicle recyclers.

The Motor Dealers and Repairers Amendment Bill is a definite step in the right direction, and I welcome the work done by the Minister for Better Regulation and Fair Trading in implementing the recommendations of the statutory review. The Minister worked closely with the Motor Traders' Association of New South Wales, the Institute of Automotive Mechanical Engineers, the Caravan Industry Association, the Australian Automotive Dealer Association, the Federal Chamber of Automotive Industries, the Insurance Council of Australia and Legal Aid NSW to consider their suggestions for ensuring that the motor industry in New South Wales remains a fair and thriving part of our economy. This is in contrast to the actions of the previous Government.

In the second reading speech on its Statute Law (Miscellaneous Provisions) Bill 2021 the previous Government did not give any explanation for why it proposed to amend the Motor Dealers and Repairers Act to change the provisions relating to the restoration of licences. Nor did it explain why it had decided to change the criteria for the restoration. For that proposal there was no consultation on the proposed new requirements, and it was unclear on what basis the previous Government had decided that changes were required. Both industry and employee representatives were caught unaware of the proposed definition. I am delighted that in contrast the Minns Labor Government is demonstrating a fresh start in its approach to regulatory reform and consulting widely and genuinely.

The 2023 amendment bill is well balanced and will deliver positive benefits for motor dealers, repairers and recyclers. However, it will continue to protect consumers by ensuring that they will continue to be able to access the information they need to make choices about motor vehicles they buy, even if they buy them completely online, which is increasingly common. It ensures that there are appropriate deterrents for misconduct, and that NSW Fair Trading has the required tools to deal with industry players who do not meet their obligations. I agree with this comment by the Minister in his second reading speech:

Through the bill, this Government is committed to ensuring that this critical industry is futureproofed for the benefit of dealers, repairers, recyclers and all consumers in New South Wales.

The automotive industry is not only a vital economic contributor but also an integral part of the lives of our constituents. Most of our constituents own cars, and during COVID we saw a huge increase in the number of second-hand car sales, as many families felt the need to drive rather than use public transport during the health emergency. We have seen an increase in the value of second-hand cars, but that also brings increased risks for purchasers. They need up-to-date protections that will ensure that their investment is solid. The Motor Dealers and Repairers Amendment Bill is a significant step in that direction, and I urge all members to support this crucial piece of legislation.

Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (17:56): In reply: I thank members for their contributions to the debate on the Motor Dealers and Repairers Amendment Bill 2023. I particularly thank the member for Willoughby, the member for Mount Druitt, the member for Liverpool, the member for Kellyville, the member for Riverstone and the member for Granville. An important role of government is to ensure that legislation remains up to date, fit for purpose and well balanced so that it protects consumers while allowing industry to innovate and grow.

After the 2020 statutory review was carried out, the previous Government sat on its hands instead of getting to work to implement the recommendations of the review. However, the automotive industry has been waiting for three years for action. It languished under the former Government and purchasers missed out on increased consumer protections. In contrast, the Minns Government has moved quickly to deliver much‑needed reform to support the automotive industry and consumers.

There is no doubt that the COVID-19 pandemic accelerated consumer preferences towards online retail and sales in the broader economy. This trend is continuing in the automotive industry and dealer-franchise model. As such, it is paramount to modernise the Act to ensure it supports industry growth and produces benefits for consumers. Indeed, it has taken this Government mere months to achieve what the former Government failed to do. The amendments in the bill will allow motor dealers to complete vehicle sales entirely online while ensuring that consumers continue to enjoy the same protections, regardless of the sales method they use to purchase a new or used motor vehicle.

The bill will support higher standards of conduct in the industry by prohibiting motor recyclers from making cash payments for end-of-life motor vehicles and parts. The bill will also provide the tools for regulators to crack down on misconduct in the industry, including odometer tampering, which has increased since the beginning of the COVID pandemic. The bill does this by expanding offences relating to odometer tampering. The vast majority of motor dealers, repairers and recyclers do the right thing and act in the best interest of consumers. I am sure that the industry welcomes the Government's move to crack down on the minority who flout the law.

The Government is also acting to reduce red tape for businesses. The bill introduces more flexible and efficient recordkeeping requirements for industry. Motor dealers, repairers and recyclers have told us that the current requirements to keep physical registers are duplicative and onerous. Removing regulatory burden where possible, particularly for small businesses, is a focus of the Government, and the Government is glad to propose changes that achieve such beneficial outcomes. Overall, the bill increases transparency and accountability of licence holders and strengthens compliance mechanisms for regulators so they can address poor behaviour and things that go wrong for consumers. The bill will ensure that the Motor Dealers and Repairers Act is fit for the future and able to respond to the ever‑changing challenges the industry faces.

I will now respond briefly to points made by members in debate. The member for Willoughby asked the Government to explore further opportunities to align dealer guarantees and consumer guarantees under the Act. Second to a house, motor vehicles are one of the largest purchases that a consumer makes and it is important that consumers have access to the most suitable remedy available to them. That is why the bill maintains both consumer guarantees and dealer guarantees. Dealer guarantees make it clear to dealers and consumers that dealers are responsible for fixing defects that occur within the defined limitation periods for a vehicle. In contrast, consumer guarantees are broader than dealer guarantees. Dealer guarantees also provide an ability for the regulator to intervene, for example, by issuing penalties for noncompliance.

I also acknowledge the Opposition's support for the bill, as stated by the member for Willoughby. The comments by the member for Kellyville relate to heavy vehicle licensing. During consultation on the bill, we heard from industry about changes it would like to see to the licensing regime under the Act. There will be a regulation-remaking process following the passage of the bill. The department will continue the licensing conversation with stakeholders during that process to determine the tangible benefits to consumers and industry of introducing any new licence classes. The department will also provide clarification to the industry on the operation of section 186 (2) (f) to provide certainty to business owners and employees. I am confident that the bill will deliver meaningful change for the people of New South Wales. It demonstrates our Government's continued commitment to ensure legislation is fit for purpose as industry evolves and embraces new technology. It demonstrates our commitment to protecting the rights of New South Wales consumers, reducing and removing unnecessary red tape, and providing greater clarity and certainty in the law.

I again thank the industry, consumer and other government stakeholders that have contributed to the development of the bill. In particular, I thank the Motor Traders' Association of New South Wales, the Institute of Automotive Mechanical Engineers, the Caravan and Camping Industry Association, the Australian Automotive Dealer Association, the Federal Chamber of Automotive Industries, the Australian Automotive Aftermarket Association, the Insurance Council of Australia and Legal Aid NSW for their considered input. I also thank those members of NSW Fair Trading who supported the development of the bill, including consultation with stakeholders. I thank Warren McAllister, Sarah Low, Timothy Richardson, James Farquharson and Elizabeth Tunnecliff for their work and commitment to ensuring that the laws governing the automotive industry are well balanced to support industry and protect consumers. I commend the bill to the House.

The ASSISTANT SPEAKER (Mr Jason Li): The question is that this bill be now read a second time.

Motion agreed to.

Third Reading

Mr ANOULACK CHANTHIVONG: I move:

That this bill be now read a third time.

Motion agreed to.