Page 12 - Australasian Paint & Panel Magazine Jan-Feb 2019

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News • In Focus
PAINT&PANEL
JANUARY / FEBRUARY 2019
WWW.PAINTANDPANEL.COM.AU
Stephen Moir, CEO of MTA WA
WA MPS CALL FOR ACCC INQUIRY
THE WA PARLIAMENT’S ECONOMICS AND INDUSTRY STANDING COMMITTEE PUBLISHED ITS FINAL REPORT ON ITS INQUIRY INTO THE WA'S AUTOMOTIVE COLLISION REPAIR INDUSTRY.
2THE MINISTER for Commerce and Indus- trial Relations to bring legislation to the Parliament by the end of 2019 to mandate the Motor Vehicle Insurance and Repair Indus- try Code of Conduct in Western Australia.
A range of allegations
have been made regarding the anti- competitive conduct of insurance companies.”
3THE MINISTER for Commerce and Indus- trial Relations to consider the role of the Small Business Commissioner as part of the process for the introduction of legislation mandating the Motor Vehi- cle Insurance and Repair Industry Code of Conduct in Western Australia.
PARLIAMENTARY FINDINGS
The committee report stated: "A range of allegations have been made, in multiple inquiries and forums, regarding the an- ti-competitive conduct of insurance companies. In this inquiry, the types of alleged misconduct included:
• Inappropriate ‘steering’ behaviours, whereby insurance companies direct customers away from businesses out- side of their ‘preferred’ networks
• The introduction of fixed prices for various forms of repair, unfairly driv- ing average costs unsustainably low
• Unequal bargaining power when agree- ing the scope of repairs to vehicles; and • The utilisation of ‘funny time, funny
money’ to artificially price repairs.
The Committee also pursued issues re- lating to the use of ‘funny time, funny money’ pricing methodologies, which was denied by the insurers. However, direct evidence was provided to the Committee, suggesting that this unhelpful practice is utilised by at least one major company.
The Committee noted that a number of inquiries have repeatedly urged the Com- monwealth Government to take action, investgate and meaningfully address anti- competitive conduct in the smash repair industry. However, it is yet to take action. The apparent nationwide scope of the problem, and increased market con- centration in other States, lends weight to the need for Federal action.
S
TEPHEN MOIR, CEO OF MTA
WA said: "This report and its recommendations are one of most significant outcomes for the smash repair industry in years. It will result in a mandated code, similar
to the one in operation in NSW."
Moir also said he believes the report will result in greater scrutiny on insur- ers and a renewed focus at a national level of the industry which will lead to improvements for repairers. WA repair- ers will now be able to go to the Small Business Commissioner in WA who will have the power to instruct insurers
where a breach occurs.
"The MTA WA has worked incredibly
hard on this issue during the year (2018) and I want to personally thank those
members who were courageous enough to provide evidence to the Committee. It was the evidence of our members that made the difference," Moir said. "The work of the Committee has been very thorough and many of their findings support what we have been saying for years about the behaviour of insurance companies."
The Committee made three recom- mendations:
1
seeking agreement to direct the ACCC under the Competition and Consumer Act 2010, to undertake an in-depth in- quiry into possible anti-competitive con- duct and misuse of power in Australia’s smash repair industry.
the
THE TREASURER to write by 28 February
2019 to the Commonwealth Treasurer