Labor is claiming the Turnbull government has broken its pre-election promise to review a car industry agreement on data-sharing that could push down car repair costs.
Subscribe now for unlimited access.
or signup to continue reading
As cars become "driven computers", independent mechanics have increasingly complained the lack of sharing of software information by car manufacturers and dealers was preventing them from carrying out basic repairs.
Ahead of the July election, the then small business minister Kelly O'Dwyer told the Australian Automotive Aftermarket Association that within three months of being re-elected the government would review the voluntary agreement on information sharing and consider a national mandatory portal.
She wrote: "The review will also consider the consumer impact of the agreement's performance and the extent to consumer detriment, as well as whether lack of vehicle access represents a barrier to entry for aftermarket repair and servicing businesses."
But there's been no such move. Andrew Leigh, opposition spokesman for competition and productivity, said the government had broken its promise to the motoring public.
"If independent service and repair businesses have limited access to standard servicing information from manufacturers, then their ability to participate in the market and offer competitive or even cheaper servicing prices to consumers will be significantly restricted," he said.
"Australian car owners are effectively losing the ability to choose a car repairer, compared to consumers in Europe and North America [where there is information sharing]," he said.
The new Small Business Minister Michael McCormack dismissed the opposition's remarks, saying the government had delivered on the promise by referring the matter to the Australian Competition and Consumer Commission, which is conducting a market study into the car sector.
"The government announced this inquiry to ensure the views of stakeholders are heard in considering future actions. In addition, the issues paper seeks views on the effectiveness of the US, EU and Canadian approaches," he said.
"The market study will inform the government's consideration of what reasonable additional measures, regulatory or otherwise that may be necessary to ensure choice of vehicle repair and servicing for consumers."
The AAAA, which represents 1300 independent repairs, claims the lack of a mandatory information portal is forcing car owners to go to official dealers for repairs rather than shopping around, stifling competition.
"If you want to choose who repairs your car – the dealer or a local repairer – you should buy a Holden, because every other brand finds a way to force you to go back to the dealer and this costs on average 25 per cent more than an independent repairer," said its executive director Stuart Charity.
He said the current, voluntary agreement signed in 2014, was failing and required a review. He accused car manufacturers of profiting from the prevention of true competition.
"Car manufacturers make a great deal of money from parts sales and these are channelled through the dealerships that make large commissions on parts," he said.
He said the ACCC referral was problematic because it will delay the review by another 12 months.
"There are 21,000 independent repairers in Australia fixing 70 per cent of Australia's 13 million passenger cars, they need this data now," he said.
The AAAA said some repairers claimed they couldn't even change the oil because they didn't know the blend.
Tony Weber, chief executive of car lobby group Federal Chamber of Automotive Industries, said he was confused by the AAAA because hardly any problems about information access have been raised directly with him.
"We support choice, and that's why we signed the agreement, but no formal issues have been put to me that I haven't been able to address," he said.
"I'm struggling to see what the problem is here, because if there is a problem, why don't the repairers actually bring it to the table?"
He said laws making information sharing mandatory was unnecessary because there was no market failure.
He said independent repairers, instead of complaining, should invest in the tools and training to service modern cars.
When asked about the oil blend problem, he said specifications are in the logbooks of the cars.
"I keep hearing this, and we scratch our heads and say, what are they talking about?"
