Motor Trades Association of Queensland
Annual Report
Contents 1. President’s Report 7. Treasurer’s Report 8. Organisational Structure 10. MTA Institute of Technology 12. Members Services and Support 16. Australian Automobile Dealers Association Queensland 18. Automotive Engineers Division 19. Automotive Parts Recyclers 20. Engine Reconditioners Association of Queensland 21. National Auto Collision Alliance 22. Queensland Farm and Industrial Machinery Dealers Division 24. Queensland Motorcycle Industry Division 25. Tyre and Undercar Division of Qld 26. Rental Vehicle Industry Division 27. Service Station and Convenience Store Association of Queensland 29. Used Car Division 30. Financial Report 56. Board Members 2010 - 2011
President’s Report The past year has been challenging for all the participants in the motor trades value chain, bringing into sharp focus the benefits of Membership of the MTA Queensland. This Report reviews my second
The Economy
sales fell by 15 per cent compared to
term as the President of the Motor
Twelve months ago I said that well
a 10.7 percent decline for the national
Trades Association Queensland
credentialed statements indicated,
industry. For the calendar year 2009–10,
(MTA Queensland). At the outset I
“that the world’s economies are finally
Queensland new vehicle sales recovered
place on record my appreciation for
emerging from the shadows of the
by 3.7 per cent against a national
the courtesies and considerations
Global Financial Crisis (GFC).” It must
increase of 6.7 per cent. For the 2010
extended to me personally by the
have been a mirage: our mmembers
- 11 calendar year our State remains in
MTA Queensland Board, the Executive
across all twelve motor trades sectors
“catch up” mode with new and used
Team, the Chairs of each Industry
continue to experience adverse trading
vehicle sales according to our forecast
Division and the District Chairs.
conditions.
volumes at pre-2005 levels.
I thank the staff of the Association for
As I write this report the economic
The best performing segments of the
their commitment and professionalism
outlook is less certain, consumer
new vehicle industry are the 4x4 light
in serving our diverse membership
demand has moderated and business
commercials that rose by 13.7 per
and enabling the Association to fulfil
confidence is subdued. There is a
cent and the medium size sports utility
the Objects of our Constitution and our
continuing rationalisation of enterprises
vehicles increased by 11.7 percent
aspirations as an organisation.
and below trend employment continues
compared with the previous year. On
The past year has been challenging for
across the entire automotive value
the other hand large and medium size
chain. Most forecasts for the medium
passenger vehicle sales declined
term are predicting a multi-speed
by 36.1 per cent and 14.5 per cent
economy with suppressed retail
respectively compared with last year.
consumer demand, unemployment
New motorcycle sales are following
remaining intractable, inflating
a similar pattern and are expected to
business input costs; some uncertainty
finish at about the same level as last
about interest rates; continuing tight
year. Used car volumes are down
all the participants in the motor trades value chain, bringing into sharp focus the benefits of Membership of the MTA Queensland. The Association through the Board, Executives and staff, represents the interests of Members on a daily basis advocating many complex industry matters and diverse issues that
credit availability and a high
slightly by 2.9 per cent and used
derive from National, State and Local
Australian dollar.
Government decisions and policies. We
The new vehicle
aspire to respond to Member’s priorities
manufacturing industry
and needs, to keep you informed and
Agricultural sales for the
and the Original
to ensure your voice is heard in motor
past year were depressed
Equipment Manufacturing
trades industry forums and at all levels of
with the Queensland
(OEM) sector has
Government.
market, in volume terms,
experienced tumultuous
falling by 18 per cent,
It has been a privilege as President,
circumstances. From
to engage on motor trades issues with counterparts at the national level where the MTA Queensland contributions are held in high regard. I pay tribute to our Acting Chief Executive Officer, Ian
motorcycle sales are similar to the previous year.
which was in line with
the onset of the GFC to December 31, 2009, Queensland new vehicle
national retail sales. In value terms the decline was 6 per cent
Field for his significant contributions and endeavours in establishing the Australia Motor Industry Federation (AMIF), which provides a federated advocacy for the motor industry issues for State and Territory Associations.
Motor Trades Association of Queensland Industrial Organisation of Employers 1
President’s Report continued Integral to our advocacy is advice to the Federal and State Treasurers on the economic conditions facing the motor trade’s industry value chain as they prepare their annual budgets. mitigated by an increased demand for
and our governance arrangements.
challenging business circumstances
larger machinery. Farm tractor sales
I take this opportunity to reiterate them
that Members are experiencing and
were a positive segment of the market
for your information:
I am aware your needs are their
and sales are continuing to rise due to demand from broad acre farmers for high horsepower machines on the prospect of a good season and on increases in small horsepower tractor sales to life style farms. Integral to our advocacy is advice to the Federal and State Treasurers on the economic conditions facing the motor trade’s industry value chain as they prepare their annual budgets. It was
• to promote, advance and protect the interest of the motor vehicle
The structure of MTA Queensland’s
industry and associated trades or
Head Office and our high calibre
businesses in Queensland and to
staff allow this Association to provide
conserve the interest of Members;
Members with quality Support Services;
• to advocate, advance and protect the interests of employers connected with the motor vehicle industry and associated trades of businesses in Queensland;
a welcome change that the 2011–12
• to consider and deal with any
State Budget imposed no new direct
question relevant to the motor
imposts on the automotive value chain
vehicle industry and associated
as in previous budgets. The fact
trades or businesses; and
remains: the net effect of successive
priorities.
• to participate in, promote and
adverse revenue raising measures is
encourage all forms of education
that Queensland is the most expensive
and training supportive of the
state for motoring in Australia.
development of the motor vehicle
The 2011–12 Federal Budget
industry and associated trades of
introduced incentive including a tax
businesses in Queensland.
Technical Services; Legal Advice and Consumer Complaint Resolution; Publications; Industrial Relations Advice; and Representation (Advocacy) and Engagement across all levels of Government.
Australian Motor Industry Federation At the national level, we have taken the positive step of actively participating in launching of the united advocacy industry body – Australian Motor Industry Federation (AMIF) at the Australian International Motor Show (Melbourne). The Federation is representative of
write-off of the first $5,000 on any
The governance and structure of the
motor vehicle purchased from 2012–13
twelve democratically elected industry
and some taxation changes for small
divisions and six decentralised districts
business. At the same time reforms
together with their Chairs comprise
were made to the Fringe Benefits Tax
the MTA Queensland Board ensuring
that will save the Government almost
that Member’s priorities and views
$1 billion over four years but will
can be heard and considered at three
impact on company fleet sales.
distinct levels: specific industry sector
We are disappointed that the Luxury
discussions, local district dialogues
Car Tax, which is a punitive tax
and at the MTA Queensland Board
impacting on advanced safety and
deliberations. I commend the Board,
Ag Show
environmental technologies, has not
the Industry Division Chairs and the
The Ag Show September, 2011 at
been repealed or a programme for its
District Chairs on their commitment to
Toowoomba was one of the best events
dismantling introduced.
Member’s issues and to achieving the
in its 19 year history. The massive
Our Organisation
Objects of our Association.
rain, although causing hardships for
Our new Constitution – ‘Rules of Motor
The MTA Queensland Board is
Trades Association of Queensland
supported by a dedicated, professional
Industrial Organisation of Employers’
and loyal staff led by Acting Chief
was approved on April 15, 2010 by the
Executive Officer Ian Field diligently
Both manufacturers and exhibitors were
Industrial Registrar. It establishes our
supporting both the Board and all
keen to display a wide and varying
Objects that are the core of our being
Members. Our staff is cognisant of the
range of supplies and technologically
2 Motor Trades Association of Queensland Industrial Organisation of Employers
all State and Territory motor trades associations and automobile chambers. Its mandate under the leadership of AMIF Chief Executive Richard Dudley encompass advocacy, representation and research and coordinating the national industry voice on issues pertaining to the Australian vehicle retail, service and repair industry.
some, has put down the moisture for an excellent primary production season across eastern Australia.
advanced agricultural equipment suited to all different farming practices.
inducted.
the ground floor offices and storage
I pay tribute to our indomitable Managing
areas of the premises were inundated by water.
Ag Show has the reputation of being
Director of MIT Brett Dale for his
one of the premier machinery displays
commitment to the concept of a best
QACE – Training
and field days in the nation, attracting
practice motor trades training facility
A core function of MTA Queensland
a multitude of exhibitors displaying
which has at its core excellence in every
as depicted in our Constitution, is
quality supplies and machinery
sense.
developing the needs of industry
Our corporate headquarters will be
to ensure that aspiring automotive
and patrons representing a broad geographical coverage including from international and interstate visitors.
equipped with the latest communication technologies to increase efficiencies
technicians have access to world class training and are well placed to service Queensland motoring demands through
Ag Show is a joint venture incorporating
and to provide Members with mediums
QFIMDD, the Royal Agricultural Society
such as video-link to engage in industry
of Queensland (Toowoomba) and
meetings to minimise travel and provide
Australian Provincial Newspapers’
real time access.
students and increase the number of
The achievement of the QACE is a
latest technologies to support the skill
Toowoomba Chronicle. The long-term sponsor is The Heritage Building Society, Toowoomba. The joint venture partners provide the management structure and expertise required to meet the demands of both manufacturers and consumers of agricultural machinery to develop into a world-class expo environment. QFIMDD continues to support the state’s agricultural industries and attendant communities concerned about the consequences of the irreversible diversion of strategically
statement of confidence in the future of the MTA Queensland, the MIT and in Queensland’s automotive industry value chain. I acknowledge the work and efforts of all participants in accomplishing
their technical skills. The QACE will transform the learning environment for high calibre technicians skilled in the demand for the industry in Queensland. Initially in the design and technical fit out of the Centre, industry practitioners were engaged to assist to replicate
this milestone.
the ‘real’ work environment so that new
To our staff who will have had been
and trainees would acquire skills in
involved in two major logistical exercises in two years, on behalf of the MTA Queensland Board I thank you in advance for your efforts and promise within all reasonable expectations that the QACE
entrants and school based apprentices realistic but safe working environments. The QACE will facilitate the training of over 2000 automotive apprentices and trainees per year of whom more than 90
will be “home” for a long time to come.
percent will be employed. Importantly,
mining industries and have advocated
The current corporate office at 1000 Wynnum Road, Cannon Hill that we share
clients and/or members comprising
concerns about the consequences.
valuable agricultural land to extractive
Queensland Automotive Centre of Excellence (QACE) Eight Mile Plains The long-term vision of successive MTA Queensland and MTA Institute of Technology (MIT) Boards and the Immediate Past President Greg Klease has been the development a state-of-the-art combined corporate headquarters and training facility to serve the automotive value chain. From January 2012 the QACE will be open for business and the inaugural cohort of apprentices and trainees will be
with the headquarters of General Motors Holden (GMH) has served well as interim premises for the combined purposes of training and corporate offices. This lease will expire upon the relocation to the QACE and I acknowledge the courtesies
approximately 3500 affiliated training automotive enterprises across Queensland will have access to this for training and industry seminars, providing opportunities for upskilling in the latest technologies. It includes: • 28 training mechanical and vehicle
extended to us by GMH.
body repair bays for pre- vocational
The MTA Queensland Board has
competencies not available in all
committed the former MTAQ House at Buchanan Street, West End to a contract of sale subject to development approval. It is expected that the approval and the sale will be finalised in 2012. In the January 2011 floods,
training; delivery of specialist workplaces; supporting 2 new priority qualifications in collision repair; • 5 training rooms (taking up to 20 students per room) for theoretical
Motor Trades Association of Queensland Industrial Organisation of Employers 3
President’s Report continued Under the Objects of our Constitution, advocacy and representation are essential components of our responsibilities and duties to Members.
learning of business management
On behalf of the MTA Queensland
chain including the Reserve Bank; The
courses, including Diploma of
Board I congratulate Manager Director
Australian Competition and Consumer
Business (this value adds to the
Brett Dale and the MIT team in
Commission; the Australian Department
traditional training usually delivered
effectively delivering such a demanding
of Treasury; Senate Committees;
to apprentices aiming to build their
outcome in terms of training curricula.
Australian Treasurer; the Queensland
understanding of running their own business); • Utilisation of the latest Information
Advocacy and Representation Under the Objects of our Constitution, advocacy and representation
Treasurer; Queensland Transport; Motor Accident Insurance Commission; Fair Trading Queensland; and Queensland Department of Environment and
Technology systems such as
are essential components of our
podcasting and videocasting
responsibilities and duties to Members.
and video link to increase access
Our Principal Policy Director Richard
Advocacy and representation has
to training by regional/remote
Payne has represented Member’s views
been reinforced with the establishment
Queensland students;
across the political spectrum, at all
of the Canberra based AMIF and the
levels of Government either personally,
appointment of Chief Executive Officer
30 trainers and 10 administration
or correspondence or submission and
Richard Dudley. The Policy Director
staff; Amenities – kitchen etc,
these are detailed in Richard’s Report.
has regular dialogue with State,
student common room, store
Richard, with his international and
rooms; boardroom – conference
national experience and broad
room to support industry based
knowledge of the motor trades
seminars etc; Administration
ensures the Association’s responses
Members’ Services
Centre – to secure training records,
or inputs into Local, State or Federal
Members’ Services has had the
development of resources etc.
Government’s proposed industry
challenge of introducing and applying
The MTA Queensland as the peak
policies are representative of
with patience and tenacity the new
industry body for the automotive
Member’s views and importantly where
governance arrangements emanating
industry in Queensland is a consortium
appropriate offers policy alternatives
from our new Constitution. The task
partner of the Queensland Automotive
that reflect Member’s business
although accomplished now requires
Skills Alliance and holds a position
requirements.
the continuing administrative structure
on the Automotive Skills Queensland
As an illustration, the Federal
reference group. This relationship
Government proposed a national
ensures that Queensland has a national
system to register business names
voice and is informed on national
to cut red tape and costs. During
skilling and workforce issues.
the consultative phase, Richard
In the past year, MIT delivered training
determined that there were elements in
Kellie and her team are in the
to more than 1500 apprentices and
the proposed policy that would impact
process of reviewing their Information
trainees – plus Fee-for-Service students
adversely on Members. He drew
Technology systems and Membership
with in excess of 500 technicians
attention to the proposed measures
profiles in preparation for the transfer to
graduating. MIT provided competency-
at a Round Table and in written
the new corporate office. In a sense,
based training in certificates I, II, III,
submissions. As a consequence the
information is today’s currency so it is
IV and Diploma level qualifications
draft legislation was amended reflecting
important that Members have access to
across Queensland. Delivery methods
the policy changes to the advantage of
the latest industry news, policy issues,
consisted of workplace training, college
our Members and indeed all Australian
legislative and regulatory information
based training, distance learning or a
business.
and corporate offers. This can only
combination of these delivery methods.
The Policy Director communicates
All units of competencies are delivered
with a broad range of agencies on
in line with national training packages.
the state of the motor trades value
• 2 Staff rooms to accommodate
4 Motor Trades Association of Queensland Industrial Organisation of Employers
Resources Management.
Territory and National counterparts on motor trades issues and policies and to harmonise policy positions.
to ensure that all Association’s units comply. I acknowledge the efforts of General Manager of Member Services Kellie Dewar and her Team for their commitment and achievements.
be done if your profile is current and accurate. I encourage all Members to check your details with Kellie’s team
to enable timely delivery of automotive
Department and this is an added strong
news and opinions, technical reporting
value chain news and Association
reason for valuing Membership of this
of products and information on new
information.
Association.
products.
I thank Kellie and her team for the
A valuable service to Members is
On behalf of the MTA Queensland
professional administrative support
our Technical Information Service
Board, I congratulate the Managing
services provided to Chairs of the
competently handled by Russell
Editor Kellie Dewar and Editor in Chief
individual Industry Divisions in support
Sticklen who also doubles as our
Mike Taylor on the high standard of
of meetings and elections, Committee
Stationery Manager. The Association
these two publications.
Members, the Executive, the MTA
has an extensive technical library
Queensland Board and importantly our
and can provide current information
Members.
on virtually every make and model of vehicle on request.
Motor Trades Golf Tournament The motor trades are not only about, markets, statistics, training and
Industrial Relations and Technical Advice
Finance
and that is camaraderie. Our 60th
A significant role of our Member
Critical to our corporate operations is
Motor Trade Golf Tournament was held
Services Division is the provision
the Association’s accounting systems
in October 2010 at the Nudgee Golf
of industrial relations advice and
and financial accounting policies. Our
Club and I thank the organisers and
assistance to Members. The Industrial
Chief Financial Officer Kathy Winkcup
the sponsors. Indications are that the
Relations Department has been the
and Treasurer Paul Petersen manage
event for 2011 will be of the same high
Association’s busiest area of activity
our financial affairs and accounting
calibre.
due to award modernisation under Fair
systems with integrity maintaining
Work Australia.
compliance with established financial
Under the stewardship of Manager
administration; there is another trait
accounting policies. I thank the Association’s Auditors BDO
Department has earned wide respect
for their diligence and professionalism.
information relating to WorkCover, work place matters, information on wage movements and award conditions, Workplace Health and Safety issues and consumer affairs. Over the past twelve months Members have been helped in the transition
Traders Golf & Calliope Golf Club Beef Day with funds donated to charity.
Ted Kowalski the Industrial Relations from Members for sound advice and
I note too, the Gladstone Annual Motor
Corporate Partners Our Corporate Partners are important
Publications
to us. In particular I mention the valued
The Association has two magazines:
relationships with the Commonwealth
the Motor Trader and the Australian Tyre
Bank; Corporate Express; Dun and
Dealer.
Bradstreet; MTAA Superannuation
The Motor Trader has been in circulation for some sixty years providing the latest news, views, opinions and products
Fund; Capricorn Society Limited, The STAR Workplace Program, MTEL-Trinity Telecom Pty Ltd and NRMA Insurance.
relevant to the trade, including advice
External Directors
on industry activities. It is circulated
I sincerely thank on behalf of MTA
monthly throughout head offices,
Queensland Board our External
branch offices, workshops, customer
Directors – Paul Moni, Hon Tom Barton
lounges, government departments,
and Steve Ghost. They have given
local authorities and Members.
generously of their expertise and
to Members and this is done either
The Australian Tyre Dealer is an
time and to our Association and it is
through direct contact or through
independent publication and produced
appreciated and valued.
special bulletins and the Motor Trader.
bi-monthly. It is circulated nationally
Executive Team
to senior executives of businesses
The Executive team is central to
associated with the tyre industry
our Association’s ability to function
including manufacturers, wholesalers
successfully. I thank them on behalf of
and retailers. It includes the latest
Members for their diligence, integrity
to the Vehicle Manufacturing Repair Services and Retail Award and the Clerks Private Sector Award and the accompanying National Employment Standards. Essentially this involves the provision of workplace information
We take pride in the high standard of workplace advice and professional help provided by our Industrial Relations
Motor Trades Association of Queensland Industrial Organisation of Employers 5
President’s Report continued
and commitment in managing the
has grown into strong and confident
affairs of our Association so that it fulfils
Association that we are today.
the Objects of our Constitution.
Members, the current market and
On behalf of the Executive Team and
economic conditions are subdued but
the MTA Queensland Board I thank
history shows that there will be upswing
our Acting CEO Ian Field for his
and I trust the coming year will be good
perspicacity, capability and capacity in
for you and your businesses.
providing leadership to our Corporate Office.
I thank the MTA Queensland Board, the Executive Team and Staff for their
The Future
commitment to our Association and to
Since commencing in 1929, an
progressing its future.
industrial organisation of employers
Thank you for the support given to me
in the motor trades has existed to advocate on behalf of and to support Members. Across the years the various entities have progressed serving
as President of the MTA Queensland. It is an honour to serve. I commend this Report to Members.
their Memberships through difficult economic circumstances and a myriad of economic and policy changes impacting on the motor trades including technology, business, communications and workplace systems. At present, we are progressing into a new phase in that history with the establishment of The QACE to serve as the state-of the-art training facility for skills development for the motor trade’s value chain and as our Corporate Office. Each one of us can take pride in this progression and the significant achievement and milestone. Our Association will continue to adapt and progress in keeping with technological and information system developments, but what will not change is the commitment to serve our membership with the same conviction of our predecessors. I remind Members that when the first industrial organisation of employers in the motor trades commenced in 1929, our nation was in the grip of the great depression and like the little acorn that grew into a mighty tree that entity
6 Motor Trades Association of Queensland Industrial Organisation of Employers
David Fraser President MTAQ
Treasurer’s Report Overall MTA Queensland’s financial position remains very strong at 30th June 2011
As this is my 2nd Treasurers Report
• The board approved the sale of the
for the Association it gives me great
building with a signed contract of
pleasure in presenting the 2010-2011
$4.8m
financial results for Motor Trades Association of Queensland, which includes wholly owned subsidiaries MTAQ Ltd, the part owner of MTAA House in Canberra and MTA Institute of Technology Pty Ltd, our training organisation. The organisation’s final result for 2010-11 was a net profit of $993,234 more than doubling the budgeted $450,000 with a total asset balance of $18,573.592 and our cash position of $840,273 which is down off last financial year due to the cash
New Building Project • The building is well on its way with the October completion date looking very likely • The purpose built MTA Queensland Headquarters at Eight Mile Plains, commenced and is due to be completed 31st October 2011. Much of the project will be funded by the organisations cash reserves and bank loan while we await the settlement of the Buchanan street building.
investment into the organisations new
Overall MTA Queensland’s financial
building project.
position remains very strong at 30th
The main highlights during the financial year were:-
June 2011 and the Association is budgeting a $300,000 loss due to bank interest on the new building
Member Services
and the ongoing rent commitments in
• Members subscription fees are up
our current Cannon Hill location, but
$16,340 • Additional corporate deals for members with e2e for members recruitment solutions
Corporate
predictions are closer to a break even position. The Executive Board and MTA Queensland Board continue to meet quarterly to review the investment performance and financial position of the Association.
• 2 shares sold in MTA house ($296,001) • Signed contracts for the sale of
Paul Peterson Treasurer/Secretary MTAQ
Buchanan Street • Commencement of the new building project in Eight Mile Plains
MTA Institute of Technology • Training remains strong contributing a total income for the year of $6,591,564
West End Building • West End building remained fully tenanted however had increased expenses due to January’s floods.
Motor Trades Association of Queensland Industrial Organisation of Employers 7
Organisational Structure
Ian Field Acting Chief Executive Officer, MTA Queensland
Kathy Winkcup Chief Financial Officer
Richard Payne Principal Policy Director
Kellie Dewar General Manager, Members Services
Pranesh Deo IT Officer
Sharnee Williams Administration Assistant Member Services
Mirela Pribic Accounts Payable Clerk
Raschelle Moore Administration Assistant Member Services
Joanne Noller Accounts Receivable Clerk
Ted Kowalski Manager Industrial Relations
Magda Gavriel Receptionist
Ben Chesterfield Divisional Executive
Andy O’Hearn Divisional Executive
8 Motor Trades Association of Queensland Industrial Organisation of Employers
Brett Dale Managing Director, MTA Institute of Technology
Joe Newbery Learning and Development Consultant
Paul Kulpa Operations Manager
Commercial Business MTA Queensland
Nicola Gardner-Smith Client Services Director
Tony Wilson Director Training Services
Stationery
Russell Sticklen Technical Advisor Stationery Manager
Publications
Regional Queensland Field Trainers x15
Marcello Riotto Senior Trainer Metropolitan
Field Trainers x17
Michael Taylor Publications Manager
Peter Richardson Art Direction Consultant
Marcello Riotto Residential Training
Kerry Cook Quality Manager
Anthony Bonaccorso Business Development Manager
Training Compliance Officers x2
Administrative Officers x3
Residential Trainers x3
Jeff Dunlop Advertising Representative
Motor Trades Association of Queensland Industrial Organisation of Employers 9
MTA Institute of Technology Notwithstanding the challenges confronted from Mother Nature, MIT has again achieved record results, both in quality and financial position.
The 2010/2011 year has presented
apprentices and trainees each year
a workplace delivery model where
great challenges and rewarding times
with a graduation rate of more than
the trainer conducts the training in
for MTA Institute of Technology (MIT).
600 tradies for our industry in the last
the workplace. The course continues
Looking back over the past 12 months
financial year. The demand across the
to appeal greatly to businesses
with the floods and Cyclone Yasi
State continues to grow and businesses
that strive to achieve a competitive
in the regions, it is remarkable how
that are watching the resource sector
advantage through investment in
quickly Queensland has regrouped.
re-boom are preparing for the potential
training. The Federal Government has
During these challenging times there
skill’s shortage and commencing new
provided incentives that support most
was a significant drop in the number
apprentices to counteract any potential
applications for the course.
of apprentices registered over the
impact on their business due to labour
January-March quarter reported for
market and skills shortages.
most industries. With a slow, but certain
MIT Heavy Vehicle - Road Transport training and assessment has been well
MIT has been actively involved in
received with several major clients on
the delivery of the Automotive Pre-
board. We now have approximately 100
Apprenticeship courses which aimed to
existing and pending students enrolled
develop potential applicants for entry
and anticipate similar growth in year
into the industry. This arrangement
two of the qualification. We anticipate
provided an excellent opportunity
this will grow at a rate similar to that of
for employers looking for the right
the Light Vehicle as we begin to secure
apprentice. We extend our thanks to
new clients and have our services
the committed employers who continue
recognised.
to provide support with vocational
As has been reported progressively
placement opportunities. Although
through our industry magazines and
the DET has advised that the pre-
other communication platforms our
coming years. With the new financial
apprentice course will no longer run,
$10m state of the art facility at Eight
year well underway and the mining
we are working closely with Skills
Mile Plains is progressing exceptionally
and resource’s sectors expected to
Queensland to negotiate alternate
well. The design has taken into
impact on our current workforce, it is
suitable programs. The likely program
consideration the advice of Industry
imperative that we all take the time to
will be shorter in duration and provide
and the demand of the training market.
review and plan for our future workforce
an introduction to the industry rather
It will complement our existing business
requirements. These issues are at the
than the trade. These applicants will
and provide opportunities for alternate
core of MIT’s business planning and our
be job ready and can contribute to
delivery models of training and new
key strategy is to remain responsive to
the business from day one – a great
training in the specialisation of vehicle
the skilling demand and be proactive in
initiative.
body (paint and panel).
workforce planning for our industry.
The Diploma of Management continues
The major news for MIT and industry is
Operations
to rollout across the State under a
that the Department of Education and
Notwithstanding the challenges
variety of delivery models. We have the
Training, through SkillsTech Australia
confronted from Mother Nature, MIT
college base model where students
will be transferring all their existing
has again achieved record results, both
come to learn of an evening one day
students to MIT. This collaboration
in quality and financial position. MIT
per week. Additionally we have a
was considered to be in the interest
continues to train in excess of 1500
distance learning (self paced) and
of industry, where the commitment
return, businesses resumed with the engagement of new apprentices during the last quarter of the financial year. Across the State there was a reported downturn of approximately 25 percent of new enrolments with MIT witnessing a 10 percent drop. All this at a time when experts are predicting another drain on our skilled workforce from the mining and resource sectors, the downturn presents ongoing concern for the automotive industry in the
10 Motor Trades Association of Queensland Industrial Organisation of Employers
to sustain technical investment is
• MIT remains on the State
Governance
best placed with us. We will be fully
Governments preferred supplier
The manatgement and staff at MIT
operational in January 2012 and look
list and holds contracts for
acknowledge the dedication and
forward to working with our new clients
UserChoice and Trade Recognition
commitment of the Board of Directors
from the collision repair sector. Our
and the prevocational training
who work tirelessly to ensure that
priorities are to transition students and
course with the State and Federal
the strategic plan and corporate
employers with minimal disruption with
Government.
governance of MIT is aligned with the
the intent to shape the training product
• In collaboration, MIT has designed,
Association’s expectations. The Board
into the needs of industry.
tendered and contracted the new
of Directors consists of:
Achievements
Automotive Centre of Excellence
• The Honourable, Tom Barton
MIT has again achieved excellent results and recognition as a training
at Eight Mile Plains, which will facilitate all things automotive.
– Chairman • Mr Glen Ford – Deputy Chairman
provider committed to excellence and
Objectives
industry engagement. We have worked
MIT’s key focus is to remain flexible
hard to expand our training products
and responsive in order to adapt to
and services to ensure that we
the changing demands of Industry.
further contribute to the sustainability
The demand for skill shortages will
of the automotive industry. These
continue to drive the direction of MIT
achievements include the following:
to ensure that industry is provided
On behalf of the Board and
• Numerous nominations for regional
optimum training products. We remain
management team, I acknowledge the
focused on the changing political
outstanding efforts of both the technical
environment and its impact on the
and support staff who work diligently to
apprentices of the year. • The development of new and improved training products and services aimed at up skilling current trades people for business management and heavy vehicle technicians and most recently panel
commitment to skilling Queenslanders and in particular the automotive industry. We will relocate and offer extended services to
beaters and spray painters.
Industry from our new
• Funding for recognition of prior
2012. The team aims
location by January
learning and gap training services
to meet and exceed
has been obtained and is suitable
the expectations of our
for industry personnel who are
clients with the objective
motivated to obtain part or full
of extending our market
qualifications. This is particularly
position and genuinely
important for businesses who do not
bridging skills
have qualified staff, which prevents
development
them from hiring apprentices under
with
a government funded training
emerging
arrangement.
technology.
• Mr Mark Brady – Director • Mr Steve Ghost – Director
deliver high quality automotive training and administrative support and who are ultimately responsible for the success of the training operation and its skilling of our industry. Brett Dale Managing Director MIT
Motor Trades Association of Queensland Industrial Organisation of Employers 11
Members Services and Support Thanks go to our Divisional Committees for their valued input over the past 12 months. These have been more difficult to fill to capacity as Members focus on their own business as the economic climate continues to be a challenge to small business owners Member Services Department
Merge of Divisions
log in required. Within the website
extend thanks to all the members for
In my last report I advised of the
there is a members only section.
their contribution and participation
merge of two (2) Divisions; Automotive
Please use your log in or password
in the form of feedback - which was
Undercar and Qld Tyre Dealers and
to view all Industrial Relations, Policy
overwhelming on our Carbon Tax
Retreaders Division. The merged
and Advocacy and Member Services
survey. Special thanks must go to
Divisions have been operating under
Bulletins. If you do not know your
our Divisional Committees for their
the new registered business name
log in details please contact Member
valued input over the past 12 months.
of Tyre and Undercar Division of Qld
Services and we will reset your details
These have been more difficult to fill
(TUDQ) since the end of last year. The
for you to gain access.
to capacity as Members focus on
name will be formally adopted through
Do you use the MTA Queensland logo
their own business as the economic climate continues to be a challenge to small business owners. Coupled with
the Constitution at the Annual General Meeting of MTA Queensland in October.
in your advertising? It may just be the point of difference between you and
time constraints we have had difficulty
Profiling your business
a competitor. You can get access to
replacing people who can no longer
We intend to professionally profile
our branding through the Members
commit to the work of the Committee.
each and every Members business
only section of the website please call
on our website. You will receive a
Member Services if you require any
questionnaire that you will need to
assistance in accessing the logo.
complete to help us present your
Communication with our Membership
Divisions meet 4 times per year for a few hours; some meet after hours or before to minimise the impact on your key focus – your own business. If you believe you could participate or would like to put forward your interest in becoming a Committee member please contact me as these are the groups giving feedback on behalf of the industry. If you would like to attend a Committee meeting to see what is involved again please make contact so I can make arrangements. This is your industry so please come along and contribute if you can. Our focus over the next 12 months will be searching for interested parties and getting more
business in the most relevant way to consumers. This will incorporate mapping such as ‘google maps’ and list what you specialise in or offer as a business. This is an opportunity for you to market your services to consumers through the MTA Queensland website so please make sure you complete
Base As I have highlighted in previous reports it is a vital part of our service to keep you informed about your Industry. Please take the time to contact us and check the details we have on file for you or complete our database updates
your profile when it is received. An
forms that are sent out during the year.
important part of a professional profile is keeping the information current so
Compliance Audit Services - fee for service
please remember to make us aware
Green Stamp Environmental Compliance
any changes, i.e., an email address if you change providers.
Program Green Stamp; our environmental Audit
people to attend at least our Annual
Have you checked our website lately?
service is available for members in
General Meetings which are open to all
You will find our submissions to relevant
Collision Repair, Mechanical and New
members of each Division.
State and Federal Departments – no
Car Dealers. These audits focus on
12 Motor Trades Association of Queensland Industrial Organisation of Employers
overall compliance with an opportunity to gain accreditation which has been used successfully to reduce EPA levies with some councils. If you are
members and staff. I would like to thank our Divisional Executives, Aynslee Bell, Ben
interested in the program please
Chesterfield and Andy O’Hearn,
contact Member Services for pricing. If
Industrial Relations Manager Ted
you want information to do a self audit
Kowalski, Technical & Stationery
on your business please contact us for
Support Russell Sticklen, Publications
details.
Editor Mike Taylor and Principal
Property Agents and Motor Dealers Act
Policy Director Richard Payne for their
Compliance Program.
involvement in the quality of services
This legislation is administratively
offered to Members as part of their
intensive. Let MTA Queensland
Membership to our Association.
perform an audit on your business and assist you with compliance. This legislation is due to be separated from Property Agents so we will be working with legislation relevant only to
To all Chairmen, Committee and Board Members I thank you for your assistance and co-operation over the past year.
our Motor Dealer Industry. The separation is not a review of the legislation but a ‘split’; we have however put forward our issues with the
Kellie Dewar General Manager Members Serives MTAQ
current legislation and will continue to work on behalf of members operating within this legislative framework seeking positive change.
Member Services Administration Support & Member Services Member Services provides administration support for each of our 12 Divisions of MTA Queensland and our Board of Management. I would like to thank my Administration staff for their continued support and assistance to
Motor Trades Association of Queensland Industrial Organisation of Employers 13
Members Services and Support continued
INDUSTRIAL REPORT
interpretation of certain provisions
protection and fair trading laws. It
The Federal Fair Work industrial
of the new awards that see the
reformed the rules relating to consumer
relations system is now in place for
Association in dispute with the Office of
guarantees, warranties, refunds and
the Fair Work Ombudsman but this is to
lay-by agreements by providing a
be expected whenever new legislation
single set of consistent, statutory
is introduced.
consumer guarantees and rules
this means that the great majority of
As if the change to the industrial
contained within the Competition and
motor trade businesses will now only
relations system was not enough for
have two awards that apply to them
businesses to contend with, we also
the Trade Practices Act 1974.
– the Vehicle Manufacturing Repair
face the prospect of national workplace
Due to its complexity, the ACL
Services and Retail Award and the
health and safety legislation being
always was intended to have various
Clerks Private Sector Award. This is a
implemented from 1st January 2012.
phase-in dates commencing with
far better proposition to what applied
This will take the place of the current
Unfair Contract Laws from July 1,
prior to Fair Work - where some
State legislation. While the changes are
2010 (including amendments to
businesses had anything up to six or
not dramatic, the national legislation
the Franchising Code of Conduct
seven different State Awards applying
does put an increased onus on the
aimed at giving franchisees more
to them. While it will still take some
owners of a business to take an active
protection), followed by Consumer
all businesses – with sole traders and partnerships having come into the system from February 2011. Effectively,
time for all members to fully acquaint
interest in workplace health and safety
Consumer Act 2010, which replaced
Guarantees, which give customers
themselves with the requirements
under the ‘due diligence’ provision.
under the Federal system, ultimately,
Another prospective change that
or services they purchased after 1
we will have a far simpler set of rules
seems to be gaining traction is the
January 2011 and the requirement
and regulations to live by. There does
issue of the level of compulsory
from July 1, 2011 for Prescribed
remain a number of issues regarding
superannuation being paid by
Notices by repairers relating to
employers. It is currently set at 9% but
the use of refurbished goods or
the union movement, in particular, is
repairs of consumer goods capable
pushing the idea that it should grow to
of retaining user generated data
12% over 10 years. We can only hope
(such as files in a computer). The
that the pace of change slows over the
next phase (from January 1, 2012)
coming months.
involves the requirement for particular
rights to remedy problems with goods
text to be included in all warranties Ted Kowalski Manager Industrial Relations MTAQ
against defects. This has particular implications for manufacturers with all literature containing express warranties, including POS material. The complexities of the ACL has
POLICY The introduction of the Australian Consumer Law and its implications for member businesses has been the most significant reform by the Government in recent years. The ACL replaced
been a challenge in articulating all relevant reforms to members and this has involved almost twenty member communications in the form of Bulletins and Motor Trader Magazine articles, including legal advice. We will continue to keep members appraised of developments with the ACL.
national, state and
MTA Queensland was proactive
territory consumer
in being the only automotive body
14 Motor Trades Association of Queensland Industrial Organisation of Employers
• November 2010 - Feasibility of
in Australia to participate in the
automotive bodies, we look forward
consultation process relating to a
in the future to working with our new
including End of Life Vehicles in the
National Business Name Registration
federated body based in Canberra on
Written-off Regime
System that will give the Australian
matters of national significance.
Securities and Investments Commission (ASIC) national responsibility from mid-2012 for registering, renewing and administering business names for all Australian businesses. Our participation played no small part in the resultant expected substantial reduction in registration fees and “red-tape” for those businesses that operate in multiple States. We provided a submission to the Queensland Government leading up to the formulation of their 2011 / 12 Budget, recommending a “hands-off” approach to the automotive value chain, and was pleased that the automotive industry was not targeted for increased revenue, as occurred over the past three years; plus we pushed for an increased commitment to skills training, which was adopted. As an example of working effectively with member divisions we are very pleased with the “Choice of Repairer” campaign that was launched for National Auto Collision Alliance members, involving website, poster, flyer and press layout promotional material. This is an on-going program to promote the benefits of using MTA Queensland members for insurance repairs. Our on-going priorities include the banning of “repairable write-off vehicles”, increased allowance for AIS inspections and national launch of the Personal Properties Securities Register (PPSR).
We have actively engaged all levels of Government with Submissions relevant to the automotive value chain, as summarised below (for the last 12
• November 2010 - BP Reliance Statement of Issues • October 2010 - The Australian Consumer Law – Consultation on Draft Regulations • September 2010 - Protecting
months): • August 2011 - Changes to Compulsory Third Party Insurance (CTP) through amendments to the Motor Accident Insurance Act 94 • August 2011 - Sub Senate Economics Committee - Dairy Impacts • July 2011 - Senate Inquiry into Business Names • June 2011 - Resolutions of Small Business Disputes
Queensland’s Strategic Cropping Land: A Policy Framework • September 2010 - Draft Bill – Motor Dealers and Chattel Auctioneers Bill 2010 • September 2010 - BP proposed acquisition of Centrel (Reliance) The contents of these Submissions maybe viewed from the MTA Q website by following the links under - News and advocacy:
• May 2011 - Economic Structure and Performance of Retail Industry • April 2011 - Proposed National Business Name Registration
Richard Payne Principal Policy Director MTAQ
System • March 2011 - The 2011 /12 State Budget Implications for the Automotive Value Chain • February 2011 Submission regarding “the impacts of supermarket price decisions on the dairy industry” • January 2011 - Exposure Draft Competition & Consumer Amendment Bill (No 1) 2011 • December 2010 -
With the formation of the Australian
Queensland
Motor Industry Federation (AMIF)
Trading
encompassing all State and Territory
Hours Motor Trades Association of Queensland Industrial Organisation of Employers 15
Australian Automobile Dealers Association Queensland The success of our Dealership revolves around customer loyalty. Finding good people for our Dealerships has never been more difficult – or more important.
This is my second report to members
campaign make sure you tell your
Government
on the activities of the Australian
town and area about the help and
AADA QLD undertakes extensive
Automobile Dealers Association
support your Dealership provides, the
advocacy and liaison with
(AADA QLD) Queensland.
assistance given to community groups
government, members of Parliament
The year 2010-11 has been a challenging one for our motoring industry. There is a general lack of confidence out there in the market place with buyers erring on the side of caution. The new car market is down, used cars are tough and our service departments are finding it hard
by your Dealership. Call it from the highest hill; always get a news report in the local paper, on the local TV and radio. You are a great community supporter – tell your staff, make them feel as proud as you are about your Dealership – most importantly never stop telling your community.
and government departments and agencies, on issues affecting dealers and their businesses. AADA QLD prepares submissions to government and Parliament, inquires and represents dealers views on policy matters to government and as a matter of policy, seeks the removal of unnecessary
to acquire a full day’s work. It does
Your image in the market place will
regulatory and compliance burdens
not seem to matter who you talk to –
always attract high-calibre people who
which affect dealers.
the newsagent, the local cafes and
have integrity and character. Do this
even the real estate agents are telling
and your Dealership success story
it honestly, as they see it. As motor
becomes the best news in town
dealers we must ‘hang in there’, keep
The role of AADA QLD
trimming our overheads, watch our
• Encourage, promote and protect
advertising spend and constantly take positive action with our aged stock in new and used vehicles. We, Queensland Auto Franchise Dealers have always made a difference in the lives of hundreds of people in our Prime Marketing Area of responsibility. We work in an industry that matters. Any way you measure it, our industry is a true success story. When we get it right, our employees stay with us.
Fair Trading and the Trade Practices Act AADA QLD monitors competition matters affecting dealers, including harsh, unfair and unconscionable
the interests of retail motor dealer
conduct and supports a legislative and
business.
regulative framework that recognizes
• Hold an annual national convention
the role of small business and fosters
for retail motor dealers and their
fair competition, which benefits
employees.
Australian society. AADA QLD seeks
• Establish and maintain contact with the legislatures of the State and Commonwealth Governments to promote, support and protect the interests of motor dealers.
to address unfair and uncompetitive behavior and to protect dealers from ‘NON-NEGOTIBLE’ contracts and the termination of contracts at will without just cause.
Franchising
This is good news since our customers
• Conduct seminars, educational
appreciate seeing a familiar face when
programs for the purpose of
they visit our Dealerships. It builds
improving the knowledge and
securing the franchising Code of
customer loyalty. The success of our
understanding of new vehicle
Conduct, and since then has continued
Dealership revolves around customer
franchise dealers.
the development of the code, including
loyalty. Finding good people for our Dealerships has never been more difficult – or more important. The competition for them has never been fiercer. Make sure as the Dealer Principal that you raise awareness amongst students, parents and teachers of the many opportunities at your Dealership. While you are on this awareness
What does AADA QLD do for its dealers? AADA actively pursues the interests of dealers and thus undertakes a range
AADA QLD has played its part in
submissions to government advocating the strengthening of the code and discussions with the ACCC regarding compliance of the franchising code
of representative, advocacy and policy
Taxation
roles over a wide variety of issues
AADA QLD maintains a dialogue with
affecting dealers and their businesses
the ATO on a variety of taxation matters
to provide an environment in which
affecting dealers and our customers,
enterprise and fair competition are
which includes imput credits, double
fostered.
dipping GST and the luxury car tax.
16 Motor Trades Association of Queensland Industrial Organisation of Employers
Unlicensed dealers
Motor vehicle theft
thanks go to Kellie Dewar, our General
AADA QLD continues to negotiate
AADA QLD strongly supports the work
Manager Member Services and her
and liaise with our government
of the Motor Vehicle Theft Reduction
staff for a job well done. Never give up
and shire councils regarding
Council in its quest to reduce both,
and never give in – must be their motto.
the activity of unlicensed motor
opportunities and professional theft.
To my good friend Richard Payne our
operators selling new cars, used
Before the year is out the REVS
Principal Policy Director, thank you for
cars, servicing of cars and the sale
is gone and a new more modern
of grey imports and grey spare
updated system, the Personal Property
year.
parts and substandard imported
Securities Register (PPSR) will be in
I look forward in the year ahead for your
replacement parts.
place.
good advice and thank the members
AADA QLD believes that unlicensed
for their contribution to the Association
and non-GST compliant operators
Aada convention and nada study tour
have an unfair advantage in
The annual AADA convention
the market place, often leaving
provides motor vehicle dealers with
consumers without warranty and
the opportunity to hear high quality
other safeguards provided by
international and Australian speakers,
licensed dealers.
discover a wide range of new products
Accc notifications AADA QLD actively pursues dealers, which includes anti
provides similar opportunities with an
competitive conduct and of
American and International focus.
notification of such matters as
Dealer servicing
third line forcing.
AADA QLD is committed to dealer
Motor vehicle advertising
servicing and continues its discussions
AADA QLD continuously monitors
with industry parties on all matters
and actively manages activity
pertaining to the Queensland Franchise
in relation to motor vehicle
motor dealers world of well-being.
advertising, particularly in respect
In conclusion, may I commend to
to the ACCC and its Dealer
all motor dealers and in particular to
advertising guidelines.
all franchise Dealer Principals, the
Skills and training
MTAQ Motor Trader publication. This
building by the end of this year at Eight Mile Plains adjacent to the Gold Coast Highway and in view to thousands of motorists on a daily basis. The MTA Institute of Technology (MIT) headed up by director Brett Dale will enter into a new world of skills training that the motor industry in Queensland has never seen before.
direction and encouragement, this year just gone and the year ahead of us. Len Daddow President AADA QLD
network with fellow dealers. The NADA USA study tour each year
will move into a purpose built new
and to my committee for their good
and services for their dealerships and
with the ACCC issues affecting
AADA QLD and its parent MTAQ
your help and advice over the past
is the best magazine of its kind, to keep up to date and abreast of all happenings in our Queensland motor industry. Make sure it goes across your desk before passing it down the line of command. Finally my Motor Trades Association of Queensland Industrial Organisation of Employers 17
Automotive Engineers Division My 2011 report is attempt to enlighten members and hopefully encourage more participation in the running of their association, MTA Queensland.
Another year has slipped by and it
Items on our “slate” include:
• Council Environmental Licence
is a time to reflect. During my many
Nationalising Transport Authority
issues. (An incentive to operate
visits to members, I have noticed that
business throughout Australia.
“best practice” ?)
members join for a variety of reasons, but they don’t always take the time to learn about their association and how it works. It is for this reason that my 2011 report is attempt to enlighten members and hopefully encourage more participation in the running of their
(This includes, Roadworthy inspections,
• Vehicle Modification Code of
driver licences, business licensing,
Practice. (Heavy and light), (Going
Government red tape, (Section 133),
fully national)
the written off vehicles policy, National
• Changing Repairable Write Off
Repairer Standards and codes of
vehicle policy Queensland and
practice and benefits to our members.)
Nationally.
association, MTA Queensland.
Particular items:
I really look forward to another year of
Who are we:
• Changes to Section 133 of
great communication and cooperative
MTA Queensland is made up of the many divisions of the motor repair industy in Queensland. Our division,
TORUMS Act. (Workshop vehicle
action between our committee, MTA
register)
Queensland staff, our members
• Review of allowance for Authorised
Automotive Engineers Division of
Inspection Station (AIS) Safety
MTA Queensland, is a Division made
Certificate inspections.
up of 421, (at the time of publication), independent and franchised automotive repairers in Queensland, including 12 members who sit on the AED committee. With myself as chairman, Ken Butler (KGB Autos), as Vice-Chairman and Grant Malseed, (Superformance), as Secretary, Our
• Right to Repair Cooperative Agreement. (As a submission to an inquiry initiative by Parliamentary Secretary Assisting the Treasurer on Competition Policy and Consumer Affairs, Mr David Bradbury. • Review of random
committee meets a minimum of 4 times
roadside vehicle
a year to discuss any aspect of our
checks versus
business and MTAQ operations.
annual vehicle
What is our purpose: Our purpose includes maintaining the standard of workmanship in the trade, the level of red tape by governing bodies, the networking between other repairers locally and nationally and the acceptable level of repair standards
inspections. • Reporting and following up results of the Reporting Defective Vehicles process.
and governance. We aim high to achieve a standard of workmanship beyond our customer’s expectation, reduce government red tape to a level that is beneficial to all stake holders, have frequent national communication with other Australian and world repairers and achieve nationalisation of licensing, repair standards and governance. 18 Motor Trades Association of Queensland Industrial Organisation of Employers
and those of other divisions in our association. Charlie Serchen Chairman AED
Automotive Parts Recyclers the RTA introduced its new stat write off law in New South Wales for repairable write offs. This has had an immediate affect on salvage Australia wide with a reduction of salvage value. After a slow start to the year we
the chance to recover because of
federal issues that we might have such
ended up with one of the most eventful
increased sales and stock levels at a
as carbon tax, refrigerant and LPG
years in our history at both MTAQ and
reduced cost.
gas removal licences and end of life
the recycling industry.
In February the RTA introduced its new
vehicles etc.
At MTAQ the major change was the
stat write off law in New South Wales for
Scrap prices remain affected by
formation of the new federation of state
repairable write offs. This has had an
the GFC and are unpredictable with
MTA’s in a way that will not see the
immediate affect on salvage Australia
members reporting record monthly
same mistakes that were made in the
wide with a reduction of salvage value.
sales figures being followed by record
past!
The side effects of this have been the
lows. Again I would remind members of
ever-increasing auction fees, and a
an anonymous dob in of an unlicensed
decrease in the motor vehicle theft
wrecking yard! All you need is an
rate in NSW. Consequently the motor
address and MTAQ will handle the rest;
vehicle theft rate has increased in
this is very relevant as there seems to
Queensland. Queensland Transport has
be an increase in unlicensed eBay type
announced that it will adopt the new
yards popping up everywhere.
And at an MTAQ level we have seen the progress of our new centre of excellence at Eight Mile Plains due for completion later this year. Well done to David Fraser, Ian Field and the board and also the wonderful staff of Brett Dale, Kellie Dewar and Kathy Winkcup for their insights of this project.
criteria suggested by the National Theft Reduction Council which, in a nut shell, is that there will be 8 points instead of
I would like to suggest the benefits of attending a conference, becoming a member and the training of salesmen
The year started with the Australian
5, and 3 of them will determine a stat
Auto Recycler’s conference at Shoal
write off. This should see a dramatic
Bay, which I unfortunately could not
increase in stat write offs in Queensland
attend - having a year twelve daughter’s
to an estimated 30% of write offs. The
graduation that weekend.
introduction date is set for sometime in
In closing I would like to thank the past
From all reports it was a great inaugural
the next year.
committee for its assistance this year
conference with a lot of networking at
APRAA has now been rejoined
as well as having as keynote speaker
by all states so if you’re a
Bill Stephens, whom I have had the
MTAQ member you are a
pleasure of hearing speak before; he
member of APRAA. Our
can get any recycler fired up. I see
scholarship and general
that there is another one this year in
funds are still there and
November 17th- 19th at the same
available for use, you can
venue.
apply for scholarship funds
In January we were hit with a one in
via the APRAA web site. I
100 year flood that affected all of us in one way or another with many of our members being completely flooded. A large percentage of people in Brisbane and surrounding districts had no power, water or transport for a week.
at ARA and URG in America as part of widening your knowledge of our industry!
and thank Lawrie Beacham for his never ending passion for our industry and I look forward to the working with new committee moving forward. Glen Ford Chairman APRD
attended the yard tour and meeting in Melbourne in July and all is back on track to work with us on any
Most have recovered well and some are taking the opportunity to reinvent themselves in the aftermath. Although this tragic event changed many of us, as in disasters before such as hailstorms and the like we get Motor Trades Association of Queensland Industrial Organisation of Employers 19
Engine Reconditioners Association of Queensland ERA of Australia delegates from each state met in Perth in April for formal discussions on where the industry was placed and heading, what are the major concerns facing the industry are and what we could do about them. Well another year has come and
equipment list required by businesses
gone and I am happy to report that as
to become members. This will also be
result of the MTA’s of Australia coming
bought into line with the qualification
together as one body again all the
changes.
states of the ERA are now actively
We are endeavouring to have a national
involved with, and talking to, each other again. ERA of Australia delegates from each state met in Perth in April for formal discussions on where the industry was placed and heading,
meeting/conference of the ERA of Australia early next year at the Gold Coast, tentatively to be around April. We have had early discussions with suppliers and other states and there
what the major concerns facing
is some very positive reaction to the
the industry are and what we could
plans.
do about them. Some of the major issues affecting the members were lack of qualified staff, apprenticeship training and competence, and prices being charged by members and non members.
Of most concern to the ERA in Queensland is a lack of support from members. Although attendance at meetings has grown slightly, we need still more support and input from our members.
Over the past few months there has been a lot of discussion on the Engine Reconditioners Qualifications and the re-structure of it. Each state has been involved in advising Automotive Skills to have the qualifications accepted nationally. TAFE Queensland has moved to its new premises in Acacia Ridge, with Lee Kirkman and John Pattison doing the training. The facilities at the new TAFE are second to none and the ERAQ will be holding a meeting there later in the year to spotlight the new facilities and equipment. There has also been talk from some of the other states of using the Queensland TAFE for training of all Engine Reconditioner apprentices in Australia. The ERAQ has been having discussions on breaking down the membership base into Engine Reconditioners, Head Shops, Specialist Services and Suppliers, to enable us to appeal to a larger membership base. We are also looking at changes to the 20 Motor Trades Association of Queensland Industrial Organisation of Employers
Mark Bryers Chairman ERAQ
National Auto Collision Alliance We will have a stronger voice nationally and can look forward to engagement with the Federal Government and Commonwealth departments to proactively influence policy, regulation and legislation to protect our industry’s interests. Another year has passed, and with it more challenges for the collision repair industry.
need.
members will be sorely missed and I
Another key factor that will affect us all in many ways is the review of
wish him well on his next phase of life into the future.
We have seen natural disasters,
Written Off Vehicle Legislation. We
I would also like to thank both the Vice
increases in costs, labour skill
have seen our brothers in New South
Chairman and Committee for their
shortages and a shift in the way
Wales experience a large increase
support over the past year and also to
our work providers do business. As
in major structural work through their
the staff at MTA Queensland.
an industry, we either sit back and
collision centres. It will mean for those
complain or look at our businesses
that wish to take on that type of work
and become more aware of ‘the true
an up-skilling in labour, training and
costs of doing business’ and improve
equipment to repair these vehicles.
our efficiencies. The tools are available
We see this as a way of reducing the
through many different organisations
re-birthing racket and strengthening the
and I thank the likes of Wayne Phipps
qualified repairer insurer relationship
and Gavin McGahey for their insightful
and reducing the unqualified
seminars and KPI reports to our
‘backyarder’ standard in the industry.
members and hope to see more of this in the future. We need to arm ourselves with this understanding or risk becoming a red line on a balance
Going forward, priority will be given to a national grading system for repairers, with appropriate recognition by insurers and the development of an ‘industry’
sheet and just another average cost of
based repair times guide.
repair.
We welcome Ben Chesterfield to the
A great positive is to see AMBRA back on the agenda and with our new national body, AMIF, headed up by Richard Dudley, we will have a stronger voice nationally and can look forward to engagement with the Federal
role of Divisional Executive. He brings with him a vast knowledge in the repair and insurer industry and I thank him for his support and dogged determination to get members more involved in our future.
Government and Commonwealth
I thankk Richard
departments to proactively influence
Payne for his
policy, regulation and legislation to
professional
protect our industry’s interests. An
expertise and
example is to mandate the Code of
many government
Conduct across Australia.
submissions and
I must congratulate the SUNCORP GROUP for the assistance to repairers affected by the natural disasters earlier this year. At a time when business owners were being hit with price
Mark Brady Chairman NACA
lobbying on behalf of our division. His knowledge, support and proactive stance on behalf of
increases across the board that could not be passed on as part of our daily cost of doing business, it was very much appreciated that one part of the insurance sector came together to help members in their time of Motor Trades Association of Queensland Industrial Organisation of Employers 21
Queensland Farm and Industrial Machinery Dealers Division
The massive floods and cyclones that totally destroyed summer crop productions across wide areas of Queensland has left our industry reeling, many of our farmer customers are trying to recover, and some are having to start all over again. Business and Industry
while Tyned Implement sales fell 52%,
distributed with $10,000 going to the
The 2010 winter harvest saw
and Windrowers were down 29%.
Premiers Flood Appeal, and $40,000
reasonable crops produced across
There was some joy in the Queensland
being divided equally between the
many farming areas of Queensland,
market for our members as the Disc
5 district divisions of MTA Queensland.
although prices were predicted to
Planter sales market actually grew by
Each District Representative Director
be good many farms didn’t forward
46%, along with the Out Front Mower
selected a worthy flood effected charity
contract as much as was produced
market growing 17% to see
recipient to each receive a donation of
therefore this saw many growers not
a total of 1221 units sold this year,
$8000.
achieving the high prices that were
this market has continued to grow
expected or achieved by growers
26% year on year for the past 10 years.
that committed early and forward
In stating the above we must realize
contracted their total crop. The 2011
that prior year sales were records due
summer crop season presented its self
to the” Investment Allowance” stimulus
as a season we never wish to face in
package that saw 2011 sales brought
our industry again. The massive floods
forward in the prior year.
and cyclone that destroyed summer
The inability of manufacturers to
AMIF is made up of Motor Trade
crop productions across wide areas
supply, along with the high exchange
Associations of every state and territory
of Queensland has left our industry
rate has seen many import agents
of Australia, and now gives the motor
reeling, many of our farmer customers
come into the Australian market
industry a truly national lobbyist voice
are still trying to recover, with some
importing new or low hour second
to government.
having to start all over again. Although
hand machines. Used equipment
it has been devastating, our farming
stock seems to be under control for the
communities are a resilient class of
majority of dealers, probably due to
people. There is light at the end of the
early signs of a good season with the
tunnel for our cotton grower clients
lack of new equipment aiding dealers in
and as devastating as the floods were
moving aged used stock early.
for many, it has put new life into the irrigation industry with all on farm water storage at maximum capacity. This gives hope to prospects of a good season with high cotton prices in the
Ag Show 2011 2011 is the 19th year of Heritage Ag Show. The QFIMDD of MTAQ holds a third partner share in the Heritage
coming season.
Ag Show event, and are proud to be
The floods impacted heavily on the
running premier field day event. As
Queensland farm machinery market pushing sales down across the board. The total Queensland Tractor market saw 2473 units sold, down 18% on the previous year. The Combine Harvester market dropped 60% with only 42 units sold in Queensland. Hay Baler
a partner in such a successful long Chairman of the Queensland Farm and Industrial Machinery Dealers Division (QFIMDD) of the Motor Trades Association of Queensland (MTAQ), I applaud the Board and Management Committee in producing such a world
2011 MTA Queensland assisted in forming a true National Association and to which is now named the Australia Motor Industry Federation (AMIF). The launch of the new Federation was held at the Australian Motor Show in Melbourne on the 4th July this year.
2011 saw the resignation of Neil Short from the position of Divisional Manager of MTA Queensland; we thank Neil for his assistance in the past and wish him well in his future endeavors. We welcome Ben Chesterfield, to the position of Divisional Manager vacated by Neil. Ben has expansive knowledge of the motor and insurance industries. Ben previously owned and operated his own automotive panel repair business before joining the insurance industry as an assessor. He is eager to be involved in all aspects and issues related with MTA Queensland divisional matters. Please join me in wishing Ben all the best in his new role. I would like to thank Richard Payne
class event.
for his tireless efforts in submitting
Seeder market Australia wide has fallen
MTA Queensland
behalf of our division. In recent times
significantly, with Queensland fairing
Post 2011 floods in Queensland saw
Richard has been active in lobbying
worst of all the states dropping 50%
the Board approve donations to the
government on “Protecting the use of
year on year over the past 2 years. The
Queensland Flood Appeals to the
Prime Farming land from Coal Mining”
Self Propelled Sprayer market fell 24%,
value of $50,000. These funds were
and “Protecting Water Security from
sales fell 32% on the prior year, the Air
22 Motor Trades Association of Queensland Industrial Organisation of Employers
submissions to government on
Coal Seam Gas Exploration�. Richard’s knowledge and proactive stance on behalf of all divisional issues is a credit to the Motor Trades Association of Queensland. On behalf of the QFIMDD I would like to extend a thank you to all the Executive Staff of MTAQ, Kellie Dewer, Kathy Wincup, Brett Dale and Ted Kowalski for their support and tireless efforts in assisting our division members, which is greatly appreciated. In finishing, I would like to extend a thank you to the QFIMDD committee, Grahame Lawson, Rob Vandersee, Donna Harper and John Cronin for their assistance throughout the year. David K Fraser JP President MTA Queensland and Chairman QFIMDD
Motor Trades Association of Queensland Industrial Organisation of Employers 23
Queensland Motorcycle Industry Division
The motorcycle division met in Melbourne to discuss national motorcycle related issues and to formalise the most appropriate way for the group to meet and discuss issues going forward. The QMID and the industry, like all
his business allowing him and his wife
industries, has had a year of flood and
Ann to retire. John was always a keen
cyclone with many dealerships finding
QMID committee member and past
themselves either knee to waist deep in
Chairman and beat the motorcycle
muddy water or lacking a roof. Some of
industry drum at every opportunity. I
the affected dealerships were unable to
would like to wish John and Ann all the
trade for up to a month while relocation,
best in the future.
repairs, clean ups and refits were
Over the next 12 months the industry
carried out. January was the hardest single month faced for decades. The
will no doubt be faced with more issues relating to road safety, similar levels of
weather has had positive results for
sales volumes and distributors trying to
the west with ATV sales at an all time
get more unit sales by introducing more
high, and with the dollar strong, this
dealers. It is important that the QMID
has resulted in healthy profits for the
stay abreast of the issues faced by its
distributors and retailers alike. Sales
members and the industry, and this
numbers are still down on the good
can only occur if members voice their
times but the industry as a whole has
opinions through this forum.
stabilised.
In conclusion, as Chairman I would like
The State Government is looking
to thank, on behalf of the committee,
with QMSWG at motorcycle fatalities,
the staff of MTAQ, especially Kellie and
safety and licensing - issues arising
Aynslee, who helped keep the issues
from this will include appropriate
of the motorcycle industry alive, and
blood alcohol concentration levels,
for representing us at government and
dress standards, new less graphic
industry meetings when I was unable to
advertising campaigns and general
attend. I would also like to congratulate
public awareness and driver education.
the members that have put up their
These studies are ongoing.
hands to give up their time and
During the year the newly formed Australian Motor Industry Federation (AMIF) conducted divisional meetings. The motorcycle division
sit on the QMID committee. Paul Peterson Chairman QMID
met in Melbourne to discuss national motorcycle related issues and to formalise the most appropriate way for the group to meet and discuss issues going forward. It was decided that an annual meeting as a group was required, however, all other meetings would be held via phone hook up or via email. It is fantastic to see the country’s MTA’s all back together and again moving in the same direction. The year also saw the retirement of one of Queensland’s motorcycle industry’s icons. John Oliver sold his share of 24 Motor Trades Association of Queensland Industrial Organisation of Employers
Tyre and Undercar Division of Qld the Senator congratulated the tyre industry on progress made towards a voluntary product stewardship scheme for tyres and said that he expected the proposed scheme to commence operation early in 2012. In the last Chairman’s Report I was reflecting on the major events of the previous year such as the Global Financial Crisis and Federal Politics, this year it’s much closer to home with the devastating floods and other natural disasters that swept the state earlier in the year.
the Minister has been briefed and is supportive (we don’t expect any delays through government), we still need to work through accreditation and input into the regulations for Queensland. We will ensure that all members are updated before the new code is adopted.
Our thoughts go out to any divisional members and their families directly affected by the floods.
Senator Farrell, Parliamentary Secretary for Sustainability and Urban Water, issued a media release in relation to progress on product stewardship of tyres on 15th of August 2011. In the statement, the Senator congratulated the tyre industry on progress made towards a voluntary product stewardship scheme for tyres and said that he expected the proposed scheme to commence operation early in 2012.
On to Divisional and Association news and matters, I am pleased to advise that we have held four meetings this year and that the attendance of each meeting has been good. The merging of the two divisions is now complete with the new name “Tyre & Undercar Division of Queensland” finally being approved. Membership numbers are currently sitting at 163 businesses and an additional 31 locations for these members giving us a total membership base of 193. The newly formed Australian Motor Industry Federation (AMIF) was launched at the Australian International Motor Show in Melbourne on July 4th, this will be the public face of the Australian vehicle retail, service and repair industry. The AMIF is headed by Mr Richard Dudley. On the local front, Richard Payne from our policy team has attended numerous meetings and lodged a number of submissions for both the Tyre and Undercar members, all of which can be found on our website. Aynslee Bell and I attended a meeting of all state and territory Tyre Division Chairmen and their executives where among other things we discussed issues relating to the National Code of Practice (NCOP) and the Tyres Stewardship Scheme. There is good news on the NCOP. All states are now signatories and while
A last minute update from our Divisional Executive advises that legislation was recently passed in Parliament and a further press release has advised that the organisation responsible for the sub legislation of tyres was to be called Tyre Stewardship Australia and that all imported tyres will now have a fee. My perception from site visits and conversations with members throughout the year is that, while the economy has been slow at times, in general business has been steady to strong.
so we can move into the premises during December ready for operations to commence in January 2012. As always, if you would like any further information on these and any other issues that are discussed at your committee meetings, please log onto the MTAQ website to view and download all Member Bulletins ,or you could contact the MTAQ directly for a copy to be sent to you. I would also like to remind all members that the MTAQ and this committee are here for you, so should you feel that there are any industry issues you would like addressed, please feel free to contact us so we can work with you to have your issues resolved. In closing I would like take this opportunity to thank the staff at MTAQ and the Committee Members for their support throughout the year and wish them and you our valued members a safe; happy and prosperous Christmas period and I look forward to the challenges that lie ahead in 2012. John Ruddick Chairman TUDQ
I am pleased to advise members that our new state of the art administration and training facility at Eight Mile Plains is on schedule to be completed by October Motor Trades Association of Queensland Industrial Organisation of Employers 25
Rental Vehicle Industry Division As a committee, we have instigated dialogue with Go Via and RTA, with the view to streamlining a system of charging and tracking for our members.
This year has proven to be a
of stolen vehicles, use of fraudulent
challenging one for car rental and
credit cards and payment defaults.
business in general. We have seen
In the past, member organisations have
natural disasters and global financial
informed each other of these problem
uncertainty impact on all aspects of our
renters on an ‘ad hoc’ basis.
industry. The high rate of exchange of the Australian dollar has further created a drop in inbound tourism. During the past year, the committee has focused on the following agenda items:
I have been working in conjuction with Richard Payne on the legalities of having a master list available to member organisations for our mutual protection. He is currently seeking legal
Tolling On Queensland Roads
opinion as to whether or not this would
The increase in the number of toll
breach current privacy legislation.
companies, toll roads, bridges and
Acknowledgements
tunnels has created general confusion for our rental customers and has created a large increase in the number of infringements being received by our member businesses. As a committee, we have instigated dialogue with Go Via andthe RTA, with the view to streamlining a system of charging and tracking for our members. This is ongoing, but a solution is being formulated and trialled. We anticipate that this will be rolled-out before the end of the year.
PPSA ( Personal Property Security Act )
Welcome to our new members who have joined this year. I encourage you to bring new ideas and any industry problems to the attention of the committee so that they can be addressed. I would like to take this opportunity to thank my fellow committee members and the staff of MTAQ for their interest and assistance throughout the past year. Chris Ching Chairman RVID
This is currently mooted to come into force on 01/10/2011. There are some sections of this act that may impact on the car rental industry, such as requiring the registration of all longterm rentals and the potential for rental vehicles to be considered as assets of the renting company in the event of that company or person being placed into administration. Members need to be aware of this and conduct personal investigations as to how this will impact on their individual businesses.
Bad Renter Database With the difficult economic times, there has been a marked rise in the number
26 Motor Trades Association of Queensland Industrial Organisation of Employers
Service Station and Convenience Store Association of Queensland A formation of national issues has been established that has encompassed all of the items that were established from our Queensland member survey. Over the past year we have
including our involvement in the
encountered yet another challenging
formation of a national body that has
period in the retail petroleum market.
seen an alliance of all the former MTA
We have endured a flood, cyclone and a Federal election, none of which have been particularly positive or instilled confidence for any retail businesses in Queensland, especially the retail
• E.P.A. - cleanup trust fund
Motor Industry Federation National
• Credit card surcharge - unfair
Retailer Fuel Forum; the first meeting of which was facilitated by MTA Queensland on 6th April. At this meeting we established the
seeing significant downturns.
way in which the future of national
that Ethanol for blending into ULP to make E10 fuel has not been readily
• Industry enterprise agreement
state bodies to form the Australian
petroleum industry, with some members
Another effect from the floods was
action no interest
representation for fuel retailers would be conducted and fulfilled. This in itself has given us a national voice with more
agreements • Tobacco - plain packaging and blackout areas • Small business classification • Drive-offs / Police co-operation • Service Station safety
resources at our disposal to provide
These issues that affect not only
the advocacy, which we require at a
SSCSAQ members, but all AMIF
national level.
members nationally.
announcement in October last year
This would not have been made
Since the April meeting, the AMIF-NRFF
by the State Government that it was
possible without the tireless effort from
has held another meeting in July, at the
suspending its Ethanol mandate until
the MTA Queensland Board, Executive
Melbourne Convention Centre, which
further notice.
and in particular our CEO Ian Field and
coincided with the formal launch of
President David Fraser, both of whom I
the AMIF. Afterwards, at this meeting,
would like to thank.
an action plan was formulated on the
available due to damage sustained to the CSR plant in Mackay as a result of the floods, this came after an
On a positive note MTA Queensland offered Disaster Recovery Tool kits not only to SSCSAQ members but all
A formation of national issues has been
members, and financial support for
established that encompasses all of the
worthy community projects recovering
items that were established from the
from the floods or cyclone.
SSCSAQ members survey from earlier
We have also seen the supermarket majors changing their marketing focus toward heavily discounted bread, convenience items and in particular milk, to the extent that this practice has drawn the attention of the ACCC who have conducted yet another inquiry into the supermarket’s practices of below-cost selling. The outcomes of
October.
dockets and predatory pricing abuse of market power • Rising oil costs and its impact on turnover and profitability • Red tape – Government charges
Other issues
of our submission is available on the MTA Queensland website. On the national scene, the SSCSAQ has had a very active year this year
AMIF-NRFF is
• Coles and Woolworth shopper
submission was titled ‘The impacts of
pending additional information. A copy
The next meeting of the scheduled for
• Wage increases
Dairy Industry’, has been withheld
into in this report.
this year. These included :
this enquiry, to which we provided a Supermarket Price Decisions on the
above listed issues, which I will not go
raised were : • Noncompliance of
I would like to thank Richard Payne and wish him luck and happiness in retirement later this year - he will be greatly missed, not only by
wages (nonaward staff structure) • ACCC – no Motor Trades Association of Queensland Industrial Organisation of Employers 27
Service Station and Convenience Store Association of Queensland continued
myself , but by all of the MTA Queensland staff and members. Richard has once again been of enormous help with his compilation of submissions for the SSCSAQ - not only for the one mentioned above, but for his submissions on Queensland Trading Hours, BP’s Acquisition of Centrel (Reliance) and Resolutions of Small Business Disputes; all of these can be viewed on the new improved MTA Queensland website, which I urge you all to do. I would like to also thank Kellie, Wendy and Katie, without their support and help our Division would not have achieved what we have this year. I would also like to acknowledge the help and friendship of Ron Jordison from Mossman who is not standing for the committee next year. Ron has represented SSCSAQ North Queensland for over 10 years and will be greatly missed by all for his knowledge and camaraderie. I would also like to thank my other committee members in the SSCSAQ for their support in this difficult year and look forward to working with them more in the next year. Tim Kane Chairman SSCSAQ
28 Motor Trades Association of Queensland Industrial Organisation of Employers
Used Car Division Unfortunately we’ve seen the rescinding of laws by the State Government regarding the issuing of Dealer’s Licences, which we had previously fought for and won. Well, another year has passed and
of their legal obligations as a dealer
at MTAQ - especially Kellie Dewar for
it has been a challenging one for the
selling to the public. This we feel
her professional support to myself and
Used Car Industry in this ever changing
has been a backward step by the
our committee and look forward to a
market we find ourselves in.
Government and was disappointing for
productive year ahead.
We have achieved considerable
us after initially achieving a good result.
success through our media advocate,
Moving on from that, we have seen
Richard Payne. His outstanding efforts
the way that business is now done in
lobbying the State Government on our
our industry move to the internet in a
behalf, regarding the status of Written
massive way. Having an interactive and
Off and Flood Damaged Vehicles, will
up to date website is an essential part
bring about new laws, which will benefit
of the success of your business.
our industry and the public alike.
all of their research online before
Richard, has also kept pursuing the
making their way to your dealership.
contentious issue of yearly Safety
Not having enough information online
Certificate Inspections with the
for them to view risks losing potential
Government. This is ongoing and as
customers. I would like to thank Richard Payne who
Unfortunately we’ve seen the rescinding
has worked tirelessly over the past year
of laws by the State Government
and been a great asset to our division.
regarding the issuing of Dealer’s Licences, which we had previously fought for and won. We had previously succeeded in lobbying the Government to bring back restrictions regarding having a designated business site, set up for the selling and display of motor vehicles. They have now reversed that decision and allowed the issuing of licences to anyone, with few requirements and no longer having to have council approved premises to operate from. So
Chairman UCD
The public are very discerning, doing
The Used Car Division, through
yet we have not achieved any result.
Daryll Searle
We need to have involvement from our members to bring about changes within our industry. We would love to see more members of our used car division at our meetings, as your input is invaluable to introduce new ideas and achieve results. Finally I would like to take this opportunity to thank all of our committee members for their ongoing support this past year.
now we are seeing dealers operating
I would also like to
from either their private premises or
thank the staff
premises not suitable for carrying on the selling and display of motor vehicles. They have scant knowledge
Motor Trades Association of Queensland Industrial Organisation of Employers 29
Motor Trades Association Of Queensland Industrial Organisation of Employers Financial Report For The Year Ended 30 June 2011 Contents 32. Statement Of Comprehensive Income 33. Statement Of Financial Position 34. Statement of Cash Flows 35. Statement of Changes in Equity 36. Notes To And Forming Part Of The Financial Statements 51. Declaration By Members Of The Board Of MTAQ 52. Independent Auditor’s Report 54. Accounting Officer’s Certificate 55. Cerificate By Members Of The Board Of MTAQ
Motor Trades Association of Queensland Industrial Organisation of Employers 31
Statement Of Comprehensive Income For the year ended 30 June 2011
Note
2
Revenues
2011 2010 $ $
9,117,466 10,001,310
EXPENSES Employee benefits expense
3
(4,972,873)
(4,813,083)
Freight and cartage
3
(49,353)
(43,751)
Depreciation and amortisation expenses
3
(209,897)
(231,564)
Commissions paid
3
(67,835)
(55,847)
Finance costs
3
(3,812)
(9,586)
Other expenses
3
(2,820,462)
(3,321,497)
Total Expenses 8,124,232 8,475,328
PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE
1(b)
993,234 1,525,982 - -
PROFIT/(LOSS) FOR THE YEAR 993,234
1,525,982
OTHER COMPREHENSIVE INCOME Revaluation of available for sale investment
(189,990)
Revaluation of Property, Plant & Equipment
(756,164)
(1,302,027) -
(946,154) (1,302,027) Total comprehensive income/(loss) for the year
47,080
223,955
Profit attributable to: Members of the Organisation
993,234 1,525,982
Total Comprehensive Income attributable to : Members of the Organisation
The accompanying notes form part of the financial report 32 Motor Trades Association of Queensland Industrial Organisation of Employers
47,080 223,955
Statement Of Financial Position As at 30 June 2011
Note
2011 2010 $ $
ASSETS Current assets Cash and cash equivalents
4
340,273
3,965,634
Short Term Deposit
5
500,000
1,500,000
Trade and other receivables
6
1,804,311
1,513,479
Inventories
7
73,360 88,399
Other
8
905,093 135,878
Held for Sale
9
4,800,000
-
Total Current Assets
8,423,037
7,203,390
Non-current assets Intangible asset
10
38,451
58,444
Other financial assets
11
2,764,520
3,442,074
Property, Plant & Equipment
12
7,347,584
5,952,130
Total non-current assets
10,150,555
9,452,648
TOTAL ASSETS
18,573,592
16,656,038
2,088,835
809,289
LIABILITIES Current liabilities Trade and other payables
13
Provisions
14
Other liability
15
408,627
250,663
Financial liability
16
73,379
43,517
Total current liabilities
2,663,429
1,213,107
92,588 109,638
Non-current liabilities Provisions
14
97,140 103,384
Financial liability
16
493,478
67,082
Total non-current liabilities
590,618
170,466
TOTAL LIABILITIES
3,254,047
1,383,573
NET ASSETS
15,319,545
15,272,465
MEMBERS’ FUNDS Reserves
17
3,132,774 4,078,928
Retained Earnings
18
12,186,771
11,193,537
TOTAL MEMBERS’ FUNDS
15,319,545
15,272,465
The accompanying notes form part of the financial report Motor Trades Association of Queensland Industrial Organisation of Employers 33
Statement of Cash Flows For the year ended 30 June 2011
Note
2011 2010 $ $
Cash Flows From Operating Activities Cash receipts from customers
9,947,513
11,261,490
Dividends received
249,449
242,250
Interest received
298,224
175,050
Cash paid to suppliers and employees
(9,590,478)
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
20 (b)
(11,096,545)
904,708 582,245
Cash Flows From Investing Activities Proceeds - sale of other non-current assets
-
26,250
Proceeds – sale of investments
296,001
1,341,002
Purchase of property, plant and equipment
(603,552)
(69,216)
Payment for investments
-
(44,192)
Proceeds from redemption of investments
1,000,000
Payment for short term deposit
-
Payment for capital expenditure
(5,678,775)
-
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES
(4,986,326)
369,294
(884,550)
Cash Flows From Financing Activities Repayment of borrowings
(43,517)
Proceeds from borrowings
499,775
NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES
456,258
(247,375) (247,375)
Net Increase / (Decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
20 (a)
The accompanying notes form part of the financial report 34 Motor Trades Association of Queensland Industrial Organisation of Employers
(3,625,360)
704,164
340,273 3,965,633
Statement of Changes in Equity For the year ended 30 June 2011
Note Asset Revaluation Retained Reserve Earnings
BALANCE AT 1 JULY 2009 Net Profit Other comprehensive income Total comprehensive income
Total
5,380,955 9,667,555 15,048,510 - 1,525,982 1,525,982 (1,302,027)
-
(1,302,027)
(501,334) (1,302,027) 1,525,982
17,18
4,078,928 11,193,537 15,272,465
BALANCE 1 JULY 2010
4,078,928 11,193,537 15,272,465
BALANCE AT 30 JUNE 2010
Net Profit Other comprehensive income
- 993,234 955,234 (946,154)
-
(946,154)
Total comprehensive income
3,132,774 12,186,771 15,319,545
17,18
3,132,774 12,186,711 15,319,545
BALANCE AT 30 JUNE 2011
The accompanying notes form part of the financial report Motor Trades Association of Queensland Industrial Organisation of Employers 35
Notes To And Forming Part Of The Financial Statements For the year ended 30 June 2011
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards. The financial report covers the Motor Trades Association of Queensland as an individual entity. Motor Trades Association of Queensland is a Union of Employers governed by the Industrial Organisations Act 1997 within Queensland and the Workplace Relations Act at a national level. The financial report of Motor Trades Association of Queensland complies with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety. The following is a summary of the material accounting policies adopted by the association in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of Preparation The accounting policies set out below have been consistently applied to all years presented. Reporting Basis and Conventions The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.
Accounting Policies a. Associated Entities Motor Trades Association of Queensland owns and controls a number of associated entities. The following are the associated entities: MTAQ Ltd MTA Institute of Technology Pty Ltd All entities have a June financial year end. Transactions which relates to these entities are conducted on trust for Motor Trades Association of Queensland and are brought to account by the Motor Trades Association of Queensland. b. Income Tax The association is exempt from income tax under section 50-40 of the Australian Income Tax assessment Act 1999. c. Inventories Inventories are measured at the lower of cost and net realisable value. Costs are assigned on the basis of weighted average costs. d. Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. Property Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings. Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity; all other decreases are charged to the income statement. Each year the difference between depreciation based on the revalued carrying amount of the asset charged to the income statement and depreciation based on the asset’s original cost is transferred from the revaluation reserve to retained earnings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.
Plant and equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows
36 Motor Trades Association of Queensland Industrial Organisation of Employers
that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Depreciation The depreciable amount of buildings is depreciated on a straight line basis with all other fixed assets and capitalised lease assets, but excluding freehold land, is depreciated on a diminishing value basis over their useful lives to the association commencing from the time the asset is held ready for use. Leased assets are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the assets. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset
Depreciation Rate
Buildings 5% Plant and equipment 15 – 60% Motor Vehicles 30% Leased Assets 20% Fixtures and Fittings 20% The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. The balance of capital works in progress is carried at cost and upon completion will be transferred to the appropriate class of assets. e. Financial Instruments Recognition Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139: Financial Instruments: Recognition and Measurement. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.
Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.
Held-to-maturity investments These investments have fixed maturities, and it is the group’s intention to hold these investments to maturity. Any held-tomaturity investments held by the group are stated at amortised cost using the effective interest rate method.
Available-for-sale financial assets Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity.
Financial liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.
Motor Trades Association of Queensland Industrial Organisation of Employers 37
Notes To And Forming Part Of The Financial Statements For the year ended 30 June 2011
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued
Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.
Impairment At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement. f. Impairment of Assets At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement. Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. g. Employee Benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. h. Provisions Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. i. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within shortterm borrowings in current liabilities on the balance sheet. j. Revenue Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Dividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates and joint venture entities are accounted for in accordance with the equity method of accounting. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. All revenue is stated net of the amount of goods and services tax (GST). k. Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use of sale.
All other borrowing costs are recognised in income in the period in which they are incurred. l. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. m. Leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to entities in the association, are classified as finance leases. 38 Motor Trades Association of Queensland Industrial Organisation of Employers
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term. n. Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. o. Capital Management The directors of the association control the capital to ensure that the association can fund its operations and continue as a going concern. The association manages capital primarily through receipt of membership and training revenue and profits generated from business activities. There has been no change in the current year to this approach. p. Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group
Key estimates — Impairment The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates. The financial report was authorised for issue on 3rd October 2011 by the board of directors.
2011 2010 $ $
NOTE 2: REVENUES Revenues From Operating Activities Agricultural Show Distribution
43,000
40,000
Commissions received
116,881
133,035
Industrial services income
3,989
70,787
Training services
6,591,564
6,421,371
Sale of publications
241,242
324,523
Sale of stationery
302,083
321,541
Interest from other persons
257,625
214,455
Members subscriptions & entrance fees
865,317
848,783
MTQ Insurance dividend
-
50,000
MTAA House dividend
206,449
152,250
Rent
242,861 180,037
Sundry income
314,600
17,278
NET REVENUE FROM OPERATING ACTIVITIES
9,185,611
8,774,060
Gain/(loss) on disposal of asset
(68,145)
1,227,250
TOTAL REVENUE FROM OPERATING ACTIVITIES
9,117,466
10,001,310
Motor Trades Association of Queensland Industrial Organisation of Employers 39
Notes To And Forming Part Of The Financial Statements For the year ended 30 June 2011
2011 2010 $ $
NOTE 3: EXPENSES Expenses From Operating Activities Accounting & Audit Fees
34,264
33,728
Advertising & Promotion
41,020
42,005
Accommodation/Travel Staff
64,130
59,629
Bad & Doubtful Debts
18,324
33,204
Bank Charges
24,539
23,776
Building Relocation
77,039
378,626
Cleaning
34,757 30,692
Cost of goods sold – Publications
78,442
171,840
Cost of goods sold – Stationery
138,568
159,530
Cost of goods sold - Training
283,641
282,171
Commissions
67,835 55,847
Computer Upgrades
49,265
68,046
Consultants fees
109,138
305,207
Depreciation & Amortisation
209,897
231,564
Director Fees
234,250
273,456
Donations
63,584 3,727
Entertainment
4,447 3,246
Fees
17,007 13,988
Fringe Benefits Tax
21,209
Insurance
75,177 70,861
Interest
3,812 9,586
25,831
Legal Costs
145,472
254,440
Impairment Loss
173,321
-
Light & Power
30,006
21,741
Meetings – Catering Staff
10,145
5,386
Meetings – Catering Board
10,721
16,917
Travel Board – Airfares/Accommodation
66,156
49,866
Motor Vehicle - Fuel
124,748
119,442
Office Supplies
53,125
59,480
Freight & Cartage
49,353
43,751
Payroll Tax
247,017
218,321
Personnel – Engagement
4,081
10,098
40 Motor Trades Association of Queensland Industrial Organisation of Employers
2011 2010 $ $
Personnel – Long Service
(12,020)
103,358
Personnel – Salaries & Wages
4,162,474
3,950,811
Personnel – Salary Sacrifice
79,102
69,984
Personnel – Superannuation
496,300
470,609
Personnel – Uniforms
5,289
14,632
Personnel – Training
21,629
46,934
Printing & Stationery
22,481
14,429
Rates & Taxes
40,045
38,405
Rental on operating leases
70,941
52,316
Rental Repairs & Maintenance Other Security
344,260 353,656 60,437
26,875
75 4,623
Special Projects
2,926
339
Sponsorships
6,759 7,180
Staff Amenities
14,750
Subscriptions
96,467 48,820
Technical Journals Telecommunications
9,930
18,079
11,290
121,639 130,062
Web Site
2,821
23,433
Workers Compensation
13,437
13,491
Total Expenses for OPERATING Activities
8,124,232
8,475,328
Cash on hand
700
700
Cash at Bank
339,573
290,771
Cash on deposit
-
3,674,163
NOTE 4: CASH AND CASH EQUIVALENTS
340,273 3,965,634
NOTE 5: SHORT TERM DEPOSIT Term Deposits greater than 3 months
500,000 1,500,000
Motor Trades Association of Queensland Industrial Organisation of Employers 41
Notes To And Forming Part Of The Financial Statements For the year ended 30 June 2011
2011 2010 $ $
NOTE 6: TRADE AND OTHER RECEIVABLES Current Accounts Receivable
397,158
511,364
Less: Provision for impairment of trade receivables
(28,013)
(29,347)
369,145 482,017
Sundry Debtors
694,664
917,146
GST Receivable
729,772
62,987
Unearned Interest on Investments
10,730
51,329
Total Receivables 2011 2010
1,804,311 1,513,479
Amount Amount Amount Amount Total Impaired not impaired Total Impaired not impaired $’000 $’000 $’000 $’000 $’000 $’000
Not past due
82,180
-
82,180
154,376
-
154,376
Past due [30] days
64,143
-
64,143
127,504
-
127,504
Past due [30-60] days
51,899
-
51,899
24,518
-
24,518
Past due [60-90] days
15,695
-
15,695
87,755
-
87,755
Past due [>90] days
183,241
28,013
155,228
117,211
29,347
87,864
Total
397,158 28,013 369,145 511,364 29,347 482,017
Analysis of Impairment Account Opening Balance
29,347
4,794
Provisions for doubtful receivables
18,324
4,986
Receivables written off during the year
(19,658)
(5,571)
Closing balance
28,013 29,347
(i) Provision for Impairment of Receivables Current trade receivables are on 30 day terms except for the apprenticeship tuition fees. The total amount for tuition fees as at 30th June 2011 was $235,260, these debts are generally on a six month terms basis. These receivables are assessed for recoverable and provision for impairment is recognised based on historical levels of bad debts.
NOTE 7: INVENTORIES Finished Goods – Stationery
73,360 88,399
NOTE 8: OTHER ASSET General Prepayments
205,093
135,878
Construction Deposit
700,000
-
905,093 135,878
42 Motor Trades Association of Queensland Industrial Organisation of Employers
2011 2010 $ $
NOTE 9: HELD FOR SALE Land & Buildings
4,800,000 -
The basis of carrying amount of Land and Buildings held for sale at 30 June 2011 is based on the contracted sale price of the West End property executed August 2011.
NOTE 10: INTANGIBLE ASSETS Software
147,601 147,601
Less: Accumulated Amortisation
(109,150)
(89,157)
Written Down Value
38,451
Total Written down Value of Intangible Assets
38,451 58,444
58,444
(a) Movement in carrying amounts
-
Software Balance at the beginning of the year Additions Amortisation/Write offs Carrying amount at the end of the year
58,444
41,899
- 44,192 (19,993)
(27,647)
38,451 58,444
NOTE 11: OTHER FINANCIAL ASSETS Non Current Investments in Unlisted Entities classified as available for sale Units MTAA House Unit Trust at directors’ valuation
2,764,520
3,437,074
Shares QASA at cost
-
5,000
2,764,520 3,442,074 The basis of valuation of Units Held in MTAA House is at fair value based on the recent sale of units in May 2011. MTA-Q Ltd disposed of 2 units and subsequently now holds 19 units of a total 115 units. The basis of valuation of shares in QASA is at cost.
NOTE 12: PROPERTY, PLANT & EQUIPMENT Land & Buildings
1,500,000
5,800,000
Less: Accumulated Depreciation
-
Written Down Value
1,500,000
5,640,901
Fixtures & Fittings at cost
6,812
111,264
Less: Accumulated Depreciation
(4,686)
(78,475)
Written Down Value
2,126
32,789
(159,099)
Plant & Equipment at cost
394,209
Less: Accumulated Depreciation
(307,453)
Written Down Value
86,756
504,878 (337,302) 167,576
Motor Trades Association of Queensland Industrial Organisation of Employers 43
Notes To And Forming Part Of The Financial Statements For the year ended 30 June 2011
2011 2010
$ $
NOTE 12: PROPERTY, PLANT & EQUIPMENT continued Motor Vehicles at cost
47,885
47,885
Less: Accumulated Depreciation
(43,035)
Written Down Value
4,850
9,732
Leased Assets at cost
161,868
161,868
Less: Accumulated Depreciation
(86,791)
(60,736)
Written Down Value
75,077
101,132
(38,153)
Capital Work in Progress
5,678,775 -
Total Property, Plant & Equipment
7,789,549
Less: Accumulated Depreciation
(441,965)
TOTAL WRITTEN DOWN VALUE OF PROPERTY, PLANT & EQUIP.
7,347,584
6,625,895 (673,765) 5,952,130
a) Movement in carrying amounts. Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year. Capitalised Land and Fixtures Plant & Motor Leased Work in Buildings & Fittings Equipment Vehicles Assets Progress
5,640,901 32,789 167,576
9,732 101,132
Total
- 5,952,130
Additions 1,500,000 - 12,252 - - 5,678,775 7,191,027 Disposals
- (18,122) (31,382) - - - (49,504)
Reclassified as Held for Sale (4,800,000) - - - - - (4,800,000) Revaluations (756,164) - - - - - (756,164) Depreciation Carrying amount at the end of the year
(84,737) (12,541) (61,690) (4,882) (26,055)
1,500,000
2,126
86,756
4,850
- (189,905)
75,077 5,678,775 7,347,584
b) MTA-Q has a bank overdraft facility amounting to $2,500,000 and a bank loan facility amounting to $5,500,000. At 30 June 2011 the overdraft facility remained unused and $499,775 had been drawn down on the bank loan. The facility is secured by mortgage over the properties located at 11-15 Buchanan St, West End, and 2740 Logan Rd, Eight Mile Plains. There is also a fixed and floating charge held over all existing and future assets and undertakings at the Eight Mile Plains property. c) MTA-Q has a bank guarantee with Westpac for $181,720 on the sublease of office premises in Cannon Hill from GM Holden Ltd.
NOTE 13: TRADE AND OTHER PAYABLES Current Creditors
386,334 89,309
Accrued Expenses
1,346,463
379,346
Annual Leave (Note 14a)
356,038
340,634
44 Motor Trades Association of Queensland Industrial Organisation of Employers
2,088,835 809,289
2011 2010 $ $
NOTE 14: EMPLOYEE BENEFIT PROVISION Current
92,588 109,638
Provision for Long Service Leave (a) Non Current
97,140
103,384
Provision for Long Service Leave (a) (a) Aggregate employee entitlement liability.
545,766 553,656
NOTE 15: OTHER LIABILITIES Current Other Payables
50,751
34,812
Subscriptions and Unearned Income Received in advance
357,876
215,851
408,627 250,663
NOTE 16: FINANCIAL LIABILITIES Current Lease Liability
45,379
43,517
Bank Business Loan
28,000
-
Total Current Liability
73,379
43,517
Non-current Lease Liability
21,703
67,082
Bank Business Loan
471,775
-
Total Non-Current Liability
493,478 67,082
Non-Current
566,857 110,599
NOTE 17: RESERVES Balance at beginning of financial year
4,078,928
5,380,955
Revaluation decrement in investments
(946,154)
(1,302,027)
Asset Revaluation Reserve
3,132,774
4,078,928
NOTE 18: ACCUMULATED SURPLUSES / (DEFICIT) Accumulated surpluses at the beginning of the year
11,193,537
9,667,555
Reclassification of Asset Reserves
-
-
Net profit attributable to the association
955,234
1,525,982
Accumulated surpluses at the end of the year
12,148,771
11,193,537
Motor Trades Association of Queensland Industrial Organisation of Employers 45
2011 2010 $ $
NOTE 19: CONTINGENT ASSETS/LIABILITIES Contingent Liabilities There are no contingent liabilities at 30 June 2011. Commitments Capital Expenditure – Eight Mile Plains Construction The entity has entered into a construction contract to build a new facility on the newly purchase property at Eight Mile Plains. The total contracted development cost is $7,000,000 (plus GST). At 30 June 2011 construction costs total $5,668,182 (excl GST). At 30 June 2011 the remaining commitment for this project is $1,331,182 (excluding GST). Operating lease commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements: Within one year
346,947
335,214
After one year, but not more than five years
119,002
465,949
465,949 801,163
NOTE 20: CASH FLOW INFORMATION a) Reconciliation of Cash Cash on hand
700
700
Cash at bank
339,573
290,771
Cash on deposit
-
3,674,163
340,273 3,965,634 b) Reconciliation of net cash provided by operating activities to operating surplus after income tax: Operating Surplus / (Deficit)
993,234
1,525,982
Non-cash flows in operating profit: Depreciation
209,897 231,564
Loss (Profit) on sale of assets
68,145
Impairment Loss
173,321
(1,225,228) -
Changes in assets and liabilities: Decrease / (Increase) in receivables
270,954
(404,288)
Decrease / (Increase) in inventory
15,039
(33,106)
Decrease / (Increase) in interest receivable
40,599
(39,405)
Decrease / (Increase) in other assets
(1,371,599)
Increase/ (decrease) in payables
370,448
Increase/(decrease) in Capital costs
-
(55,522) (26,510) 369,347
Increase / (decrease) in provisions
(23,294)
89,368
Increase/ (decrease) in unearned income
157,964
150,043
Increase / (decrease) in other liabilities
-
-
Net cash provided by / (used in) operating activities
904,708
582,245
46 Motor Trades Association of Queensland Industrial Organisation of Employers
c) Credit-Standby Arrangement & Loan Facilities MTA-Q has a bank overdraft facility amounting to $2,500,000 and a bank loan facility amounting to $5,500,000. At 30 June 2011 the overdraft facility remained unused and $499,775 had been drawn down on the bank loan. The overdraft facility is renewed annually and interest rates are variable. The bank loan facility expires in April 2015 and is interest only until April 2012.
NOTE 21: RELATED PARTIES a) Officers’ Remuneration and Other Transactions The Board Members’ businesses are all current members of the association and also purchase Stationary from the association which are on standard terms. Director fees paid during the financial year 2010-11 were $234,250 (2009-10 were $273,456). Apart from the above, there was no other Related Party Transaction during the financial year ended 30th June 11. Names of Officers who held office during the year are: David Weatherall Ian Field
John Ruddick
Rodney Pether
Daryll Searle
Paul Peterson
Charlie Serchen
Glen Ford
David Fraser
Graham Winter
Ian Goble
Mark Bryers
Tim Kane
Steve Eaton
Thomas Barton
Stephen Ghost
Mark Bryers
Len Daddow
Dean Turner
Craig Harris
Mark Brady
2011 2010 $ $
NOTE 22: INTER-DIVISION CONTRIBUTIONS AND PAYMENTS a) Amounts contributed / allocated by MTA-Q Corporate to other MTA-Q divisions representing $20 membership renewal.
46,820 29,280
b) Success fees at the rate of 36% paid to Corporate division of MTA-Q for monies raised by divisions’ activities.
15,480 32,400
The above amounts are eliminated upon consolidation of the Corporate division with other divisions and are not disclosed in revenues and expenses disclosed in Notes 2 and 3 respectively. Refer Note 18 for list of divisions.
NOTE 23: FINANCIAL RISK MANAGEMENT a. General objectives, policies and processes Motor Trades Association of Queensland (MTA-Q) is exposed to risks that arise from its use of financial instruments. This note describes the company’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements. There have been no substantive changes in the entity’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note. The principal financial instruments from which financial instrument risk arises are: — Trade receivables — Cash at bank — Trade payables — Leased liability
Motor Trades Association of Queensland Industrial Organisation of Employers 47
Notes To And Forming Part Of The Financial Statements For the year ended 30 June 2011
NOTE 23: FINANCIAL RISK MANAGEMENT continued The Board of MTA-Q has overall responsibility for the determination of the MTA-Q risk management objectives and polices and, designing and operating processes that ensure the effective implementation of the objectives and policies to the entity. MTA-Q’s risk management policies and objectives are therefore designed to minimise the potential impacts of these risks on the results of, where such impacts may be material. The Board receives bi annual reports from the Finance Manager of MTA-Q, through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. The overall objective of the Board is to set polices that seek to reduce risk as far as possible without unduly affecting MTA-Q competitiveness and flexibility. Further details regarding these policies are set out below: b. Credit Risk Credit risk is the risk that the other party to a financial instrument will fail to discharge their obligation resulting in MTA-Q incurring a financial loss. This usually occurs when debtors fail to settle their obligations owing to MTA-Q. There is no concentration of credit risk with respect to receivables. The group does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the company. The maximum exposure to credit risk at balance date is as follows:
2011 2010 $ $
Receivables
397,158
511,363
The company’s most significant customer accounts for trade receivables at 30 June 2011 was $40,500 (2010: $58,500). c. Liquidity Risk Liquidity risk is the risk that the entity may encounter difficulties raising funds to meet commitments associated with financial instruments. It is the policy of the Board of Directors of MTA-Q, to maintain adequate committed credit facilities. The unused bank overdraft credit facility at balance date was $2,500,000. The bank overdraft facilities may be drawn down at any time but may be terminated by the bank without notice. The bank loan facility has been approved to a limit of $5,500,000 and $499,775 has been drawn down at 30 June 2011. d. Maturity Analysis - 2011
Carrying
Contractual
Amount
Cash flows
< 6 mths
6- 12 mths
2,088,836
2,088,836
2,088,836
-
1-3 years
Financial Liabilities Trade and other payables Lease liability Bank Loan TOTAL
-
67,082 67,082 23,664 23,664 19,754 499,775
499,775
-
2,655,693 2,655,693 2,112,500
28,000
471,775
51,664 491,529
Maturity Analysis - 2010 Financial Liabilities Trade and other payables
809,289
Lease liability
110,599 110,599 23,664 23,664 63,271
TOTAL
919,888 919,888 832,953 23,664 63,271
48 Motor Trades Association of Queensland Industrial Organisation of Employers
809,289
809,289
-
-
d. Interest Rate Risk The companyâ&#x20AC;&#x2122;s exposure to interest rate risk, which is the risk that a financial instrumentâ&#x20AC;&#x2122;s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities, is as follows:
Weighted Average
Effective Interest Rate
2010
2009
% %
Floating Interest Rate 2010 $
2009 $
Non-Interest Bearing 2010
Total
2009
2010
$
$
-
-
2009
$
$
Financial Assets Cash
6.10 6.23
Receivables Total Financial Assets
839,573 - 839,573
5,465,634 - 5,465,634
839,573 5,465,634
1,804,311 1,513,479
1,804,311 1,513,479
1,804,311 1,513,479
2,643,884
6,979,113
Financial Liabilities Trade & other payables
-
-
2,088,836
809,289
2,088,836
809,289
Lease liability
4.20
67,082
110,599
-
-
67,082
110,599
Bank Loan
6.39
499,775
-
-
-
499,775
-
566,857
110,599
2,088,836
809,289
2,655,693
Total Financial Liabilities
919,888
e. Net Fair Values The net fair values for all assets and liabilities approximate their carrying values. No financial assets and financial liabilities are readily traded on organised markets in a standardised form. Financial assets where the carrying amount exceeds net fair values have not been written down as the company intends to hold these assets to maturity. f. Sensitivity Analysis Management has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. The borrowings are in the form of finance leases which have a fixed interest rate and bank loan facility which is interest only until April 2012. Management has assessed that there is minimal risk due to the increase of interest rates to the profit and loss position of the entity. Short-term benefit
Post employment benefits
NOTE 24: KEY MANAGEMENT PERSONNEL COMPENSATION 2011 Total compensation
706,954
99,013
2010 Total compensation
681,562
93,610
Motor Trades Association of Queensland Industrial Organisation of Employers 49
Notes To And Forming Part Of The Financial Statements For the year ended 30 June 2011
2011 2010 $ $
NOTE 25: AUDITORS REMUNERATION Audit Audit of the financial report
35,500
34,500
4,500
385
Non-audit services Other services
The directors are satisfied that the provision of non-audit services, during the year, by the auditor (or another person or firm on behalf of the auditor), is compatible with general standard of independence for auditors imposed by corporations Act 2001. Key management personnel include directors and five key executives of the organisation.
NOTE 26: CAPITAL AND LEASING COMMITMENTS Finance Lease Commitments Payable — minimum lease payments — not later than 12 months
47,328
47,328
— between 12 months and five years
21,890
69,219
Minimum lease payments
69,219
116,547
Less future finance charges
2,137
5,948
67,082
110,599
Present value of minimum lease payments
16
he finance lease on office equipment comprises a 5 year lease which commenced in October 2007 for $222,054.81. The T equipment is being leased directly from the manufacturer with lease payments paid monthly. The interest rate implicit in that lease is 4.20%.
NOTE 27: ACCOUNTING STANDARDS ISSUED NOT YET EFFECTIVE There are a number of accounting standards that have been issued but are not yet effective. The organisation does not expect any material impact on financial statements from the impending changes. However, various additional disclosures will be required in the financial statements in future periods.
NOTE 28: EVENTS AFTER BALANCE SHEET DATE Subsequent to the balance date, MTA Queensland has entered a contract to sell the property at West End. The contract entered into is a Put and Call Option Contract with the purchaser being in a position to exercise the call option within a twelve month period. If the purchaser does not exercise the call option within this period MTA-Q can then exercise the put option.
NOTE 29: REGISTERED OFFICE Motor Trades Association – Queensland 1000 Wynnum Road CANNON HILL QLD 4170
50 Motor Trades Association of Queensland Industrial Organisation of Employers
Declaration By Members Of The Board Of MTAQ
In the opinion of the board of MTA-Q the financial report as set out on pages 32 to 50. 1. Present fairly the financial position of the Motor Trades Association of Queensland Industrial Organisation of Employers as at 30 June 2011 and the results and cash flows of the association for the year ended on that date in accordance with Australian Accounting Standards and other mandatory professional reporting requirements. 2. At the date of this statement, there are reasonable grounds to believe that Motor Trades Association of Queensland Industrial Organisation of Employers will be able to pay its debts as and when they fall due. This statement is made in accordance with a resolution of the board of MTA-Q and is signed for and on behalf of the Committee by:
David Fraser President
Paul Peterson Treasurer Dated this 3rd day of October 2011.
Motor Trades Association of Queensland Industrial Organisation of Employers 51
Independent Auditor’s Report
To the members of Motor Trades Association Queensland Industrial Organisation of Employers (MTAQ)
Report on the Financial Report We have audited the accompanying financial report of MTAQ, which comprises the statement of financial position as at 30 June 2011, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and declaration by the Members of the Board.
The Members of the Boards’ Responsibility for the Financial Report The Members of the Board are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Industrial Organisations Act 1997, and for such internal control as the Board determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 1, the Board also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards.
Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the association’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
52 Motor Trades Association of Queensland Industrial Organisation of Employers
Independence In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies.
Opinion In our opinion: (a) the financial report presents fairly, in all material respects, the financial position of Motor Trades Association Queensland Industrial Organisation of Employers as at 30 June 2011, and its financial performance and cash flows for the year then ended in accordance with Australian Accounting Standards and the Industrial Organisations Act 1997; and (b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1. BDO Audit (QLD) Pty Ltd
D.P. Wright Director Brisbane, 4 October 2011.
Motor Trades Association of Queensland Industrial Organisation of Employers 53
Accounting Officerâ&#x20AC;&#x2122;s Certificate
I, Kathy Winkcup, being the officer responsible for keeping the accounting records of the Motor Trades Association of Queensland Industrial Organisation of Employers, certify that as at 30 June 2011 the number of financial members of the Association was 1,447 and the number of non-financial members was nil. In my opinion: the attached financial report shows a true and fair view of the financial affairs of the Association as at 30 June 2011; a record has been kept of all moneys paid by, or collected from, members and all moneys so paid and collected have been credited to the bank account to which those moneys are to be credited, in accordance with the rules of the Association; expenditure incurred by the Association was approved under the Associationâ&#x20AC;&#x2122;s Rules before it was incurred. with regard to the funds of the Association raised by compulsory levies from members, or funds other than the General Fund operated in accordance with the rules, no payments were made of any such fund for purposes other than those for which the fund was operated; all financial benefits granted to employees were allowed under the Associations rules. There were no loans or financial benefits given to persons holding office in the Association; the register of members of the Association was maintained in accordance with the Act.
Kathy Winkcup Chief Financial Officer Dated: 3rd October 2011
54 Motor Trades Association of Queensland Industrial Organisation of Employers
Cerificate By Members Of The Board Of MTAQ
In the opinion of the board of management the financial report: Present fairly the financial position of the Motor Trades Association of Queensland Industrial Organisation of Employers as at 30 June 2011 and the results and cash flows of the association for the year ended on that date in accordance with Australian Accounting Standards and the Industrial Relations Act. At the date of this statement, there are reasonable grounds to believe that Motor Trades Association - Queensland Industrial Organisation of Employers will be able to pay its debts as and when they fall due. Meetings of the Board of MTA-Q were held during the year ended 30 June 2011, in accordance with the rules of the association. To the knowledge of the Board of Management, there have been no instances where records, rules or copies of them have not been given to the Associationâ&#x20AC;&#x2122;s members under the Act. The Audit report and accounts for the Associations financial year ended 30 June 2011 have been presented to an annual general meeting of the Association, and given to all financial members at that time. This statement is made in accordance with a resolution of the board of MTA-Q and is signed for and on behalf of the Committee by:
David Fraser President
Paul Peterson Treasurer Dated this 3rd day of October 2011
Motor Trades Association of Queensland Industrial Organisation of Employers 55
Board Members 2010 - 2011
David Fraser President Chairman, Queensland Farm and Industrial Machinery Dealer Division (QFMIDD)
Steve Eaton Vice President Representative, Far North Queensland region
Mark Bryers Vice President Chairman, Engine Reconditioners Association Qld (ERAQ)
Paul Peterson Secretary/Treasurer Chairman, Queensland Motorcycle Industry Division (QMID)
Len Daddow President, Australian Automobile Dealers Association (Qld) (AADA(Q))
Glen Ford Chairman, Auto Parts Recyclers Division (APRD)
Tim Kane Chairman, Service Station & Convenience Store Association Qld (SSCSAQ)
John Ruddick Chairman, Tyre & Undercar Division of Qld (TUDQ)
Charlie Serchen Chairman, Automotive Engineers Division (AED)
Daryll Searle Chairman, Used Car Division (UCD)
Mark Brady Chairman, National Auto Collision Alliance (NACA)
Chris Ching Chairman, Rental Vehicle Industry Division (RVID)
Rod Pether Representative, North Queensland region
Graham Winter Representative, South West region
Les Anderson Representative, Central Queensland region
Dean Turner Representative, South East (North) region
Vacant Representative, South East (South) region
56 Motor Trades Association of Queensland Industrial Organisation of Employers
Motor Trades Association of Queensland Industrial Organisation of Employers 57
1000 Wynnum Road, Cannon Hill Queensland 4170 PO Box 560, Morningside Queensland 4170 p: (07) 3237 8777 f: (07) 3844 4488 tf: 1800 177 951 www.mtaq.com.au
MTA Institute of Technology 1000 Wynnum Road, Cannon Hill Queensland 4170 PO Box 560, Morningside Queensland 4170 p: (07) 3722 3000 f: (07) 3722 3030 tf: 1800 884 137 www.mtaq.com.au