Progressing the Automotive Industry's Priorities

The MTA is actively pushing the industry’s priorities with the new State Government. Meetings have been held with the Premier and Ministers during May and will continue into June. In attendance were MTA Chair Frank Agostino, CEO Paul Unerkov and Industry and Government Engagement Manager, Kaes Cillessen.

“We will meet with all the relevant ministers across the new Cabinet,” said Kaes.

“And we’re also going to be working with the Opposition and the crossbench as well. We represent our industry, we don’t represent a certain side of politics. We’re about delivering outcomes and making sure the priorities of our industry are progressed and are acknowledged by government.”

The following is a summary of discussions with each Minister.

Andrea Michaels, the Minister of Small Business and Consumer Affairs.

• Reiterated that vast majority of our members are small, medium and family run businesses. Thanked her for the government’s decision to make the changes to close contact rules, which has been a major issue for our industry, which is already facing skill shortages.

• MTA is keen to see progress in the reform of the Second Hand Vehicle Dealers Act (the Act). It has been in the pipeline for three years and many members have had significant input in terms of cutting red tape, streamlining processes and update forms, and modernising the Act to reflect modern business practice.

• “We were pleased that Labor promised that they would push through with the update of the Act. We don’t want to see that body of work, go to waste,” said Kaes.

• Body repair legislation. Minister worked on this in Opposition and understands the issues. MTA stressed the point that as the legislation has been passed, there should be more urgency finalising the implementing the new regulations, including:

o the ability to issue penalties for breaches against the code, as well as the disclosure of choice of repair and insurer relationships with repairers.

o a stronger role for the Small Business Commissioner in terms of mediating and resolving disputes between insurers and repairers.

Stephen Mulligan, Treasurer

• The importance of the automotive industry in terms of its contribution of more than two billion to the South Australian economy through the approx. 5000 businesses that employ more than 27,000 employees.

• A key topic was making sure South Australia remains a competitive place nationally to do business.

• Labor’s election promise for no new taxes and what that actually means in detail. We’re pleased to hear that they’re committed to it, and that we’ll be watching it closely in terms of that commitment,” said Kaes.

• Land tax: general message from the Minister was ‘no changes planned’.

Blair Boyer, Minister for Education, Training and Skills

• A key portfolio, given industry skill shortages and the fact that the MTA trains 900 apprentices and employs 475.

• Stressed the importance of promoting trade pathways for young people

• Minister reiterated election commitment to deliver an automotive apprentice mentoring program. MTA working through the implementation of that program with the department.

• Promoting opportunities for apprentices aged 21 years and older. A ‘mature’ first year apprentice can cost almost double.

o “We think that there’s a lot of value in people who have maybe missed their window early on, particularly young males who may have not really worked out what they wanted to do, but then realised they want a career in automotive.

o “There needs to be a way for industry to consider those people, whether it’s through a subsidy or other means, to make them more viable as an option for a business.”

• School Pathways. Emphasised the work the MTA is doing and ways we can work with government to increase the number of people coming into automotive and then retaining them.

Tom Koutsantonis, Minister for Transport and Infrastructure

• Confirmed Labor’s election commitment to return the trade counter to Infrastructure and Transport offices, as well as service SA locations, in addition to other measures aimed at making it easier for businesses in the automotive industry to trade.

• Members report lining up at 5am but being turned away due to capacity restrictions and told to come back at 4am the next day was simply not good enough.

• Proposed alternative ways to alleviate some of those bottlenecks, including partnering with industry to be able to deliver inspections under an authorised regime. Licensed secondhand vehicle dealers who are Regency Park delegates can do vehicle identities inspections for vehicles under the age of 10 years. Proposed extension to 15 years. This would mean fewer vehicles going to Regency and other department inspection sites, and reduce delays.

• Urged the move to an online booking system for Regency Park.

• “It’s so unproductive for a business to send their staff just to wait in a line where they could just have a booking in place. We’re pleased that the Minister raised the issue and that he’s willing to consider the solutions that we’re proposing.”

• Continued to lobby for the compulsory vehicle inspections in South Australia, which is critical to improving road safety and consumer protection.

• Updated the Minister on the National Heavy Vehicle Regulator’s discussion paper on what it sees as a national, risk-based inspection scheme for heavy vehicles.

Clare Scriven, Minister for Regional Development

• 51.3% of businesses in South Australia are suffering from a labor shortage, according to the Directions in Australia’s Automotive Industry And Industry Report 2021. However, when you break that down, it’s 42.1% in metropolitan areas but 55.6% in regional areas.

• The MTA has a commitment to growing the pipeline of skilled apprentices but especially for regional areas, skilled migration is key in solving skills shortages. That is especially the case for people who are highly skilled and often brand-specific experts and technicians.

• Discussed training and the MTA’s regional training centers in Cleve, Bordertown, and Strathalbyn. The MTA should be supported in the regions. For example, the agriculture and heavy vehicle focus is critical to local industries.