MTA NSW urges bipartisan support for Parliamentary Franchising Inquiry recommendations

| March 19, 2019

The Motor Traders’ Association of NSW (MTA NSW) urges bipartisan support for the introduction of all recommendations arising from a Joint Parliamentary Committee report into the effectiveness of franchising.

MTA NSW said the release of the Committee report  has highlighted and confirmed the significant concerns and issues raised by our national body, the Motor Trades Association of Australia (MTAA).

Members and motorcycle, farm and industrial machinery dealer businesses not only during the inquiry but over recent years in various investigations and inquiries.

“As an NSW Employer Association that represents sectors like the independent motorcycle, farm and industrial machinery dealer businesses and service stations, MTA NSW  has worked closely with MTAA to advocate to have the existing Franchising Code of Conduct reviewed to provide adequate coverage, and protections, “ said MTA NSW CEO, Stavros Yallouridis.

“We have participated with the MTAA Member States and Territories and importantly the Committee has made significant recommendations that will fundamentally address many of these concerns and provide a better, transparent, fair and reasonable franchise environment,” he said.

MTA NSW supports the MTAA viewpoint that it is imperative that current government consultation processes including the development of a Regulatory Impact Statement to address a power imbalance between manufacturers (franchisors) and dealers incorporate the Committee’s recommendations.

MTA NSW welcomes emphasis on significant changes to existing provisions and clauses of the laws and regulations, the potential for an Automotive specific Code, strengthened regulator powers, application of meaningful penalties, greater disclosure requirements, improved dispute mediation and resolution and the establishment of an inter-agency taskforce to implement the recommendations.