Motor Trades Association of Queensland
A n n u a l
R e p o r t
2 0 1 2
I am proud to present this Annual Report reviewing my third term as President of the Motor Trades Association of Queensland (MTA Queensland), the peak industry body of the automotive industry.
Contents
02 President’s Report
09 Treasurer’s Report 10 Organisational Structure 12 MTA Institute of Technology 14 Members Services and Support 18 Australian Automobile Dealers Association Queensland 21 Automotive Engineers Division 23 Automotive Parts Recyclers 24 Engine Reconditioners Association of Queensland 25 National Auto Collision Alliance 26 Queensland Farm and Industrial Machinery Dealers Division 28 Queensland Motorcycle Industry Division 29 Rental Vehicle Industry Division 30 Service Station and Convenience Store Association of Queensland 32 Tyre and Undercar Division of Queensland 33 Used Car Division 35 Financial Report 64 Board Members 2011 - 2012
Motor Trades Association of Queensland Industrial Organisation of Employers 01
President’s Report The past year has been challenging, yet we have achieved significant outcomes and met important milestones to the advantage of Members confirming the value of being a Member of MTA Queensland.
David Fraser President MTA Queensland
I am proud to present this Annual Report reviewing my third term as President of the Motor Trades Association of Queensland (MTA Queensland), the peak industry body of the automotive industry. Our beginnings can be traced back to 1929, which means this is the 83rd Report of our Association representing the interests of employers engaged in the automotive trades in Queensland. Our Rules, approved in April 2010, pursuant to the Queensland Industrial Relations Act 1999 specify the purpose of our being as: • to promote, advance and protect the interests of the motor vehicle industry and associated trades or businesses in Queensland and to conserve the interest of Members; • to advocate, advance and protect the interests of employers connected with the motor vehicle industry and associated trades of businesses in Queensland; • to consider and deal with any question relevant to the motor vehicle industry and associated trades or businesses; • to participate in, promote and encourage all forms of education and training supportive of the development of the motor vehicle industry and associated trades of businesses in Queensland.
of Members confirming the value of being a Member of MTA Queensland. I thank Board Members for their commitment to their duties, their generosity in giving of their valuable time and their courtesies to me as President. Board deliberations benefit from the diligence and valued advice of our Chief Executive Officer, Ian Field and his staff and I thank them for their counsel and professionalism. I commend to Members the comprehensive Reports presented by the Chairs of the 11 Industry Divisions, each being a Board Member. And I thank them for their insightful contributions. They are: • Mark Bryers, MTA Queensland Vice President and Chair of the Engine Reconditioners Association Qld; • David Fraser, MTA Queensland President and Chair of the Queensland Farm & Industrial Machinery Dealer Division; • Paul Peterson, MTA Queensland Secretary/Treasurer and Chair of the Queensland Motorcycle Industry Division; • Len Daddow, President of the Australian Automotive Dealers Association (Qld); • Glen Ford, Chair of the Auto Parts Recyclers Division;
• to do any such other lawful things as may appear to be incidental or conducive to the above Object in any of them.
• Tim Kane, Chair of the Service Station & Convenience Store Association Qld;
The total focus of your Board is to comply with and achieve these objects by delivering support services for our Membership and representing issues of relevance to automotive trades to all levels of Government. The past year has been challenging, yet we have achieved significant outcomes and met important milestones to the advantage
• Charlie Serchen, Chair of the Automotive Engineers Division;
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• John Ruddick, Chair of the Tyre & Undercar Division of Qld;
• Daryll Searle, Chair of the Used Car Division; • Mark Brady, Chair of the National Auto Collision Alliance; and • Chris Ching, Chair of the Rental Vehicle Industry Division;
Over the past 6 years in successive submissions to Commonwealth agencies MTA Queensland has supported the Australian Consumer Law (ACL) reform process to provide for a new consumer protection framework. Essential to our Board’s deliberations are the contributions of our regional representatives who bring to the table a unique perspective of the automotive value chain economic circumstances and policy issues in their areas. I thank them for their valued input. They are: • Steve Eaton, MTA Queensland Vice President and Representative for Far North Queensland Region; • Rod Pether, Representative for North Queensland Region; • Graham Winter, Representative for South West Region; • Les Anderson, Representative for Central Queensland Region; and • Dean Turner, Representative for South East (North) Region.
The Economy As I review the economic circumstances of the automotive value chain faced for the 2011-12 financial year, the anecdotal information indicates that the so called “boom” economic conditions did not apply to the automotive value chain in the same way as other sectors of Queensland’s economy. Undoubtedly, the gloom of the Global Financial Crisis and the aftermath of natural disasters have dissipated but difficult trading conditions and business activity persisted throughout the year. Despite this, economic circumstances for the automotive trade improved compared to the preceding four years, although tight credit conditions and cautious business investment sentiment prevailed. The end of the financial year did bring good news for our automotive dealers with strong sales figures. New vehicle sales for June 2012 of 25,051 broke the 2007 pre Global Financial Crisis record of 24,997 sales. Whilst consumers benefited, the automotive market conditions for businesses were tough.
Advocacy Over the past 6 years in successive submissions to Commonwealth agencies, MTA Queensland has supported the Australian Consumer Law (ACL) reform process to provide for a new consumer protection framework. However, MTA Queensland continues to pursue legislative reform that would enhance protection for small to medium enterprises in business to business transactions with dominant suppliers with market power. The ACL has been an ongoing focus. We have participated in Roundtables, presented submissions and provided additional material on request on the matters under reference. We contributed to a number of matters including: • Inquiry into the Franchising Code of Conduct and related matters; • (Industry Codes – Oilcode) Regulations 2006 Review; • Australian Business Names (ABN) Business Names Registration Project; • Personal Property Securities pertaining to Registration and Search Issue; • Trade Practices Amendment (Australian Consumer Law) Bill (No. 2) 2010; • Review of Conditions and Warranties; • An Australian Consumer Law: Fair Markets – Confident Consumers Some of these measures have had prolonged implementation stages and have been ongoing issues for Members. Our Policy Director has been active in advising and reminding Members to be alert to changes in the ACL. One such issue which took effect from 1 January 2012 was the Changes to Product Warranties against Defects. This required that any warranties against defects of any
consumer products sold in Australia need to comply with the mandatory requirements of the specific regulation under the ACL. Another policy matter dating back to 2006 was the Personal Property Securities (PPS) Register which took effect from 30th January 2012. The PPS reform brought the different Australian Government, state and territory laws and registers for security interests in personal property under one national system. In conjunction with other State automotive affiliates, MTA Queensland prepared a submission which was submitted through the AMIF in response to the Consumer Affairs Advisory Council Issues Paper relating to the sharing of repair information in the automotive industry. Over the past twelve months we have participated in the Commonwealth’s policy proposal to establish a National Business Name Registration System. This came into effect in May 2012, and provided for business names to be registered nationally, thus eliminating the need to register in each state a business trades, thereby cutting red tape and costs. Importantly, businesses name registration allows for joint online registration in conjunction with Australian Business Number registration. MTA Queensland was the only automotive body to participate in the consultation process relating to the National Business Name Registration system. We were pleased that our voice was heard on specific matters relating to our Members’ businesses. It was rewarding that our recommendations were adopted and reflected in the legislation. It is our practice to respond to requests from the Motor Accident Insurance
Motor Trades Association of Queensland Industrial Organisation of Employers 03
President’s Report continued The MTA Queensland will work with the new Government’s Ministerial team on policies and issues relevant to the automotive value chain to acheive outcomes in the best interests of Members. Commission for submissions for its reviews of the limits to apply to Compulsory Third Party premiums. On each occasion we have stated that from the perspective of our Membership the prevailing economic circumstances indicate that premiums should remain unchanged. Members have been continually informed regarding the implications of the Carbon Tax for their businesses. In the case of the automotive value chain, the Carbon Tax impact is mainly the higher costs of energy, increased supplier costs, the incremental costs of goods to be retailed and the increased waste disposal charges. The use of fuel retailing shopper dockets by the major supermarkets has been an ongoing issue for our Service Station and Convenience Store Association members with many representations by way of communications with the Australian Competition and Consumer Commission (ACCC). As a consequence of the combined advocacy of MTA Queensland and our national body the Australian Motor Industry Federation (AMIF), the ACCC has commenced an investigation into the impact of shopper dockets on fuel retailing. Initially, some Members provided the ACCC with commercial intelligence that they believe indicated unfair tactics. Currently, the ACCC is seeking detailed information from the major supermarkets about their “shopper-docket” schemes. We made a submission to the Parliamentary Transport, Housing and Local Government Committee’s Inquiry into Motorcycle Licensing Processes in Queensland. Our Motorcycle Industry Division which includes Q-Ride Registered Service Providers and
supply Q-Ride training and assessment consulted widely to prepare a comprehensive submission. We were invited to appear before the Parliamentary Transport, Housing and Local Government Committee’s Inquiry into Motorcycle Licensing Processes in Queensland to give evidence and respond to questions. The election of the Liberal National Party (LNP) Government heralded a new era for Queensland. MTA Queensland will work with the new Government’s Ministerial team on policies and issues relevant to the automotive value chain in the best interests of Members. The LNP’s pre-election commitments such as reducing red tape, the revamping of the skills and training system and training of additional apprentices are all matters of relevance to Members. We were pleased that the promise to freeze family car registration fees for the first term of an LNP Government was implemented from July 1 2012 and that the $35 a tonne tax on commercial, industrial, construction and demolition waste was repealed. General Manager Kellie Dewar has had meetings with the new LNP Ministers with portfolio responsibilities that pertain to the automotive value chain. The opportunity was taken to brief Ministers on the impact of red tape and regulation on our business sectors. Kellie’s meeting with the Attorney General and Minister for Justice concentrated on “red tape”, drawing attention to the 14 statutory forms required for the purchase/sale of a motor vehicle. An offer was made to cooperate with the Office of Fair Trading to review the regulatory regime as a precondition to the foreshadowed division of the Property Agents and
04 Motor Trades Association of Queensland Industrial Organisation of Employers
Motor Dealers Act. It was stressed that this would be the best time to reduce the paperwork by reforms in new legislation as it would provide concurrent benefits to industry and consumers. MTA Queensland has long advocated in submissions and deputations that the motor dealers should be regulated by stand alone industry specific legislation. Representations to the Minister for Transport included the deregulation of fees for safety inspections. We have consistently advocated such a change to ensure that vehicle checks are comprehensive and a one-size fits all does not encourage safety shortcuts. Statutory Write Offs continue to be an unresolved issue and this matter was raised with the new Minister. The Queensland automotive industry is united in the need for legislation to introduce one class of written off vehicles. Kellie will continue to liaise with key Ministers and their staff to discuss automotive industry and related issues at the State level. Over the past twelve months Members have received many Bulletins some relating to the above policy issues from our former Policy Director Richard Payne. After three years in the role and some 45 years in the national and international automotive industry, Richard decided to pursue new goals. Richard contributed his considerable automotive knowledge to assist members with their technical and policy issues and to advocate industry matters to all levels of Government. On behalf of all Members I express thanks for his valued contributions and am pleased his expertise will be retained in our structure as Chairman of the Executive Committee.
The AMIF has been in operation for over twelve months and is proving to be an effective advocate for our Membership on matters that are in the Federal jurisdiction. Australian Motor Industry Federation (AMIF) The AMIF has been in operation for over twelve months and is proving to be an effective advocate for our Membership on matters in the Federal jurisdiction. With AMIF, there is a strong national organisation to engage with the Federal Government and Commonwealth Departments to proactively influence the development of policy, legislation and regulation and to protect our industry’s interest. AMIF has successfully achieved the renewal of relations between the States and Territories. MTA Queensland hosted a meeting for the AMIF and the Motor Trades Association Australia Superannuation in February 2012 at our new Headquarters, the Sir Jack Brabham Queensland Automotive Centre of Excellence. Representatives from all State and Territory Motor Trade Associations attended and a variety of important national issues were addressed.
Industrial Relations and Technical Information Service Industrial Relations advice and representations is a core service to Members and is a responsibility expertly handled by our Industrial Relations Manager Ted Kowalski and Industrial Relations Officer Michelle Chadburn. Over the past year, many Members have sought and relied on the sound advices and Bulletins provided by Ted on topics such as Salary Sacrifice (into a superannuation fund) and the new Workplace Health and Safety Laws which commenced 1 January 2012. In all industrial matters relevant to Members requiring submissions to Fair Work Australia or other Federal Agencies, the practice is for our
Industrial Manager to liaise with the Motor Trades Association’s (MTAs) Industrial Officers in the other jurisdictions to form a common view and tender joint submissions. We provided input into submissions including the Fair Work Annual Wage Review; and the Review of the Operation of Modern Awards which was to vary particular awards to correct perceived anomalies/inequities or to address issues that may have been overlooked in the original establishment of the modern awards. The Office of the Fair Work Ombudsman (FWO) conducted a national compliance and education project applying to the Vehicle Manufacturing Repair Services and Retail Award. Specifically this related to the Automotive Electrical Service, the automotive body, paint and interior repair (including car wash and crash repairs); other automotive repair and maintenance including radiator, muffler and exhaust systems and general repairs. MTA Queensland, along with the other State MTAs liaised with the FWO during this project to ensure that consistent and valid interpretations were applied to the various award provisions. The Australian Council of Trade Unions lodged an application with Fair Work Australia for an increase in wages for Years One and Two apprentices. The Federal Government issued a “scoping paper” to guide Fair Work Australia on apprentice and trainee wages and conditions. Included was the stated need to examine the introduction of competency based-progression through an apprenticeship – which has been a feature of Queensland’s system for a number of years. The motor industry associations, including MTA Queensland, sought the views of members via an on-line survey to guide the development of the submission.
On behalf of the Board and Members I thank Ted and Michelle for the sound and knowledgeable advice provided to Members. I commend Member’s attention to Ted’s Report.
Membership Services In the past year, Membership Services under the guidance of General Manager Kellie Dewar has excelled. In recent times it has had to cope with substantial changes to our governance, structure, leadership and location. Over the past three years, MTA Queensland has experienced three major logistical exercises. Whilst these have been projects involving all staff, Membership Services has carried a large responsibility to ensure “business as usual” providing the operational support for Divisions and Members throughout the upheaval. On behalf of the Board, I thank Kellie and Staff for their efforts and unfailing courtesy to the Board and Members. A new initiative recently introduced by Membership Services is the Green Stamp Program. This is an environmental program run in all jurisdictions through the MTAs. Our Association is accredited to undertake environmental audits for members in Collision Repair, Mechanical and New Car Dealer Divisions. The Program assists small to medium business in the automotive trades to incorporate processes and practices that avoid, reduce, reuse, recycle and dispose of waste in an environmentally responsible manner. MTA Queensland successfully tendered to employ three new Apprentice Advisors. Their role is to provide information to school leavers, employers and advisors about the apprenticeship arrangements available in the automotive industry.
Motor Trades Association of Queensland Industrial Organisation of Employers 05
President’s Report continued
The Automotive Centre of Excellence is now the home of MTA Queensland and MTA Institute of Technology. They will service South-East Queensland, the South-West and Darling Downs, Central Queensland, and North and Far North Queensland. Having settled into their new home, Membership Services has turned its focus to the future with plans to raise the profile and brand of MTA Queensland with automotive and related trades and consumer base. This will be achieved by increased media engagement and overhauling the website to be more informational and relevant to Members. I commend Kellie’s report to Members which provides an insight into the new and exciting promotional plan for our future and thank her and her team for their high standard of service and professionalism.
Sir Jack Brabham Automotive Centre of Excellence A most significant development of the past year occurred on December 12, 2011 when we relocated to our purpose built state-of the art facility at 2728 Logan Road, Eight Mile Plains. This move was an exercise in precision planning and executed with logistic perfection and I thank all staff for their sterling contributions. The facility is our third home in three years and I assure all that we will be at this location well into the future. The Centre of Excellence is now the home of MTA Queensland and MTA Institute of Technology bringing together training for the retail, service and repair sectors with the administrative headquarters for the state’s employer’s association. The facility was officially opened by the Queensland Premier, the Hon Campbell Newman on 12 October 2012 in the presence of Sir Jack
and the MTA Queensland Board, Members, Staff and guests. The origins of the centre date back to 2006, when MTA Queensland established a new corporate structure to enable the MIT to operate independently and develop strategies to better service the automotive industry’s growing demand for new apprentices and advanced technological skills. It was clear that facilities beyond the standard office space would be required. A move to Acacia Ridge was made by MIT with the prospect of a partnership with the State Government’s Skills Tech Australia. The plan was that MTA Queensland also would be located at the Acacia Ridge site. Architects were engaged to design a complex that could accommodate both the administrative and training facilities. Ultimately, growth constraints at the Acacia Ridge site brought about a change in location strategy leading to MIT and MTA Queensland temporarily relocating to Cannon Hill sharing facilities with General Motors Holden while a new site was identified. After the Eight Mile Plain location on the Freeway Office Park was chosen an informal tender process resulted in the appointment of Office Park Developers (OPD). A new design incorporating all specifications was developed by OPD and a contract was established in 2010 with Hutchinson appointed as OPD’s builder. The new facility was handed over in October 2011 and both MIT and MTA Queensland relocated in December 2011. The first intake of students at QACE occurred in February 2012. The MTA Queensland Board is pleased to announce that the former Headquarters at Buchanan Street, West End has now been sold.
06 Motor Trades Association of Queensland Industrial Organisation of Employers
Training The Motor Trades Association Institute Technology (MIT) has set a new benchmark for excellence in automotive training, having had industry practitioners engaged to assist in the design and technical fit out to replicate the ‘real’ work environment. It provides new entrants and schoolbased apprentices and trainees with skills development in a realistic but safe work environment. It is able to facilitate the training of up to 2000 automotive apprentices and trainees per year. The centre is equipped with the latest technology and training resources which support MIT as the largest private provider of automotive vocational training in Queensland. The MIT specialises in training for Light Vehicle Mechanical Technicians; Motorcycle Mechanical Technicians; Parts Interpreting; Managers and Special Automotive Technicians. Recently, Paint and Panel Training was introduced, allowing us to service this industry sector with the latest equipment to provide apprentice training to current industry standards. With over 150 apprentices being trained in this sector at our facility, we anticipate significant growth in student numbers over the next financial year. There are 28 training mechanical and vehicle body repair bays for pre-vocational training and delivery of specialist competencies not available in all workplaces. MIT also offers two new priority qualifications in collision repair. Whilst the majority of MIT’s training is delivered to apprentices and trainees, one of our strengths continues to be our ‘whole of career’ training. Integral to MIT training is the school based apprenticeships which are specially designed for young people who aspire to a trade and find traditional
The 2011, 19th Ag Show attracted some 700 exhibitors featuring quality livestock and state-of-the-art agricultural machinery and technology equipment and new releases of tools and generators. educational programs unsuitable for their purposes. MIT has undergone two significant audits during the financial year. The major audit was the renewal of registration audit. The results were excellent owing to our genuine commitment to our continuous improvement and the dedication of the staff at MIT. The other audit was the Australian Vocational Education and Training Management Information Statistical Standard audit which again produced excellent results. Credit for these excellent outcomes must be given to MIT’s administrative team. These results provide a licence to trade as a Registered Training Organisation for the next five years. MIT, under a Federal Government Indigenous Employment Program, has been involved in training 14 Indigenous Australians on Palm Island to become mechanics. At the end of a six month course which included work experience and study through MIT, the participants received a Certificate II in Automotive Mechanical ensuring they were prepared to begin their apprenticeships. On behalf of MTA Queensland I pay tribute to the former Managing Director Brett Dale who resigned to make a career change. Brett was one of the architects of MIT and it stands as a lasting salute to his commitment to achieving best practice in the provision of quality training and service to the student and employer at all times. Member’s attention is drawn to the Acting Managing Director Paul Kulpa’s Report. On behalf of the MTA Queensland Board and Members I congratulate the MIT Board and Staff on transitioning to the new Centre and effectively delivering a demanding outcome in terms of training curricula.
Finance Central to our operations are our accounting and financial management systems and policies. Our Business management group accountant Kathy Winkcup and Treasurer Paul Petersen manage our financial affairs and accounting systems with integrity, maintaining compliance with best practice accounting policies. I thank the Association’s Auditors BDO for their diligence and professionalism.
Ag Show A popular event on our schedule is the annual Heritage Bank Ag Show held in September of each year in Toowoomba. It is supported by a joint management structure incorporating MTA Queensland, through our Queensland Farm and Industrial Machinery Dealers, the Royal Agricultural Society of Queensland (Toowoomba) and the Australian Provincial Newspapers’ Toowoomba Chronicle. The Ag Show has the reputation of being the most important and largest agricultural and machinery Field Day in Queensland. The 19th Ag Show in 2011 attracted some 700 exhibitors featuring quality livestock and state-of-the-art agricultural machinery and technology equipment and new releases of tools and generators. The three day event coincided with rain but it was well attended with patrons travelling from many parts of Queensland and New South Wales.
Industry Awareness Publications Members receive regular industry specific publications advising on motor trades’ developments; legislative requirements, developments and initiatives relating to the automotive value chain.
Motor Trader magazine, issued monthly, is the official publication of MTA Queensland and is a benefit of membership. It features policy, industrial relations, industry and training information and views and general stories of interest to Members. The Motor Trader, our website and other publications help to establish irrefutable credentials within the community and the various agencies of government by disseminating the views and news of our several industry sectors, including training. An important objective of the Association is to promote community and customer goodwill towards the industry by providing information and advice wherever possible and our publications and website are integral to achieving this goal. On behalf of the Board I congratulate Editor Mike Taylor on Motor Trader and thank him for his skills he brings to the task of publishing.
Member’s Generosity Our 62nd Annual Motor Trade Golf Tournament at the Nudgee Golf Club again was an outstanding social success balanced by strong competition in the main event – the 18 holes stableford. This event was for the Motor Trade Cup donated by MTA Queensland with the winner receiving a replica Cup and a special trophy. Trophies also were provided for second, third and fourth and other run-downs. Trophies were awarded for the 18 holes Stroke Event, Nearestthe Pins and Hole-in-One. I thank Members for their participation and donations of trophies. Our charity Golf Days in regional Queensland cities of Gladstone and Mackay have been supported by Members by providing trophies for the various golf events. An exceptional act of generosity of spirit was inspired by MTA
Motor Trades Association of Queensland Industrial Organisation of Employers 07
President’s Report continued It is encouraging to report that each month new members have joined the MTA Queensland for the services and benefits provided. Queensland’s Immediate Past President Greg Klease to help a Hervey Bay distinguished Vietnam Veteran with transport whilst receiving medical treatment for illnesses sustained as a consequence of the War. Greg telephoned MTA Queensland’s North Queensland representative, Rod Pether, of Rod Pether Motors to inquire about a loan of a vehicle for the Veteran for a week or so. Rod graciously loaned a vehicle for six weeks free of charge.
• The Star Workplace Program – recognises organisations that are committed to creating high performing and engaged automotive workplaces;
Membership
• Pac Corp - audits business expenses in the areas of energy, telecommunications and waste disposal.
It is encouraging to report that each month new members have joined MTA Queensland for the services and benefits provided. I welcome each new member and encourage them to be make good use of their membership and engage with our professional and caring staff. As indicated previously our role is twofold – advocacy and service. We represent on behalf of Members their views to all levels of Government and provide a one stop industry advice to our Members.
Corporate Partners On behalf of Members, I thank and acknowledge our Corporate Partners for their ongoing support to our Association. They are: • Capricorn Society Limited – the largest independent automotive parts buying cooperative in Australia; • Commonwealth Bank – offers members some of the lowest EFTPOS charges and access to general banking products • Corporate Express – the leading supplier of a complete range of office consumables; • Dun and Bradstreet – is the nation’s foremost credit control and debt collection agency;
• MTAA Superannuation –Industry Superannuation; • NRMA Business Insurance – has vast experience in the provision of a superior level of specialised insurance services to the automotive industry; and
External Directors On behalf of the MTA Queensland Board I sincerely thank our External Directors – Paul Moni, the Hon Tom Barton and Steve Ghost. They contribute a professional wisdom to our deliberations which is appreciated and valued.
Executive Team Our governance to a large extent rests with our Executive Team. On behalf of Members I thank each for their integrity and diligence in performing their duties in managing the affairs of our Association so that it fulfills the Objects of our Rules. On behalf of the Executive Team and the MTA Queensland Board I thank our CEO Ian Field for his visionary leadership of the Corporate Office.
Staff Recently, our Corporate Office has been restructured largely as a consequence of the retirement of former Policy Director Richard Payne. Chief Executive Officer Ian Field took the opportunity to implement changes to position MTA Queensland for the future.
08 Motor Trades Association of Queensland Industrial Organisation of Employers
Kellie Dewar who has served as our General Manager of Member Services has been promoted to General Manager and Dani Fioretti has been recruited as Public Affairs Manager to manage media requests, assist with policy, our website content, draft media releases and undertake other work on our profile and branding. We have loyal, competent and capable staff and I acknowledge on behalf of the MTA Queensland Board their contributions.
The Future MTA Queensland steps confidently into the future. The groundwork has been done with changes implemented to our governance, corporate structure and facilities for the purpose of continuing to fulfill the Objects of our Rules as an Industrial Organisation of Employers in the automotive trades. I commend this Report to Members. David Fraser President MTA Queensland
Treasurer’s Report The Association is in very good shape and is being managed very well with 1,426 current financial members and over 2,200 enrolled students across various qualification and industry sectors. Your Board of Directors, and the Association’s staff were vigilant in 2012 in ensuring that the Association maintained its financial sustainability, as well as verifying day-to-day actions were well-aligned with long-term goals. Paul Peterson Treasurer/Secretary MTA Queensland
The financial accounts, as presented, were audited by BDO Audit Pty Ltd.
Financial Results 30th June 2012 Balance Sheet The equity position of the Association remains strong at $15,301,155. Changes in the equity position from 2011 are:-
West End Building. Before impairment loss allocation the Association made a gross profit of $483,961.
General comments The Association is in very good shape and is being managed very well with 1,426 current financial members and over 2,200 enrolled students across various qualification and industry sectors. Paul Peterson Treasurer/Secretary MTA Queensland
• Revaluation of West End property from $4.8 to $4,406,500, this represents the carrying amount of Land and Building held for sale at 30th June 2012 less cost to sell • Financial liability $1.9m representing bank loan to facilitate new MTA Queensland headquarters • Increase in property, plant & equipment with the completion of new headquarters MTA Queensland’s new headquarters was funded mainly by the Associations cash reserves, the total value of the project was $10m, bank loan at 30th June 2012 $1.9m. The bank loan will be completely repaid once West End property sale is finalised 3rd January 2013 for $4.4m, returning the Association into a positive net cashflow. Profit attributable to Members of the Organisation This year’s end result of ($18,390), revenues $8,944,878 and expenses $8,963,268. Included in the net loss is an impairment loss $502,351 representing $108,851 revaluation of MTAA Unit Trust (Canberra property) and $393,500 revaluation of Motor Trades Association of Queensland Industrial Organisation of Employers 09
Organisational Structure
Motor Trades Associ Kellie Dewar MTA Queensland General Manager
Stationery
Publications
Member Services
Administration
Industrial Relations
Policy and Media
Russell Sticklen Stationery Manager Technical Advisor
Michael Taylor Publications Manager
Andy O’Hearn Divisional Executive
Magda Gavriel Receptionist
Ted Kowalski Industrial Relations Manager
Dani Fioretti Public Affairs Manager
Art Director
Ben ChesterďŹ eld Divisional Executive
Katie Gould Administration Assistant Member Services
Michelle Chadburn Industrial Relations Officer
Industry and Political Policy Advisor
Advertising Representative
Cameron Carter Divisional Executive
Raschelle Moore Administration Assistant Member Services
10 Motor Trades Association of Queensland Industrial Organisation of Employers
iation of Queensland Steve Ghost Managing Director MTA Institute of Technology
Kathy Winkcup Business Manager and Group Accountant
Paul Kulpa Operations Manager
Tony Wilson Director Training Services
Kerry Cook Quality Manager
Gloria Rogers Nicola Gardner Client Services Director
Mirela Pribic Accounts Payable Clerk
Regional Queensland Field Trainers x10
Anthony Bonaccorso Business Development Manager
Training Compliance Officers x1
Joanne Noller Accounts Receivable Clerk
Marcello Riotto Senior Trainer
Colin Young IT Manager
Mentor/Advisor Apprentice Program x6
Joe Newbery Learning and Development Consultant
Administrative Officers x4
Field Trainers x17
Residential Trainers x4
Motor Trades Association of Queensland Industrial Organisation of Employers 11
MTA Institute of Technology Over the past 12 months, MIT has been through a building relocation, commencement of new training lines, transitioning to the new national VET regulator and the delivery of national workforce development contracts. The 2011/2012 financial year has provided great challenges and rewarding times for MTA Institute of Technology (MIT).
Paul Kulpa A/g Managing Director MTA Institute of Technology
Over the past 12 months, MIT has been through a building relocation, commencement of new training lines, transitioning to the new national VET regulator and the delivery of national workforce development contracts. The most significant achievement is our new “Automotive Centre of Excellence” training facility, which became fully operational in January 2012. The facility offers a focal point for automotive industry training and skilling and a strong channel for industry and vocational training collaboration. The centre is equipped with the latest technology and training resources and continues to support MIT as the largest private provider of automotive vocational training in Queensland. The design has taken into consideration the advice of industry and the demand of the training market. It will enhance our existing business and provide opportunities for alternate delivery models of training, and new training in Automotive Painting and Panel Beating. The addition of paint and panel training has allowed us to service this industry sector with the latest equipment to provide apprentice training in line with current industry standards. With over 150 apprentices being trained at our facility, we anticipate significant growth in student numbers over the next financial year. Whilst the majority of MIT’s training is delivered to apprentices and trainees, one of our strengths continues to be our ‘whole of career’ training. MIT’s delivery of prevocational training under the State Government’s
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Strategic Investment Fund (managed by Automotive Skills Queensland) has completed its first intake of students, with two more remaining groups to be finalised. This has provided a great opportunity for people looking at starting a career in the automotive industry. We extend our thanks to the committed employers who continue to provide support with vocational placement opportunities. MIT’s management courses have been completed by a number of students over the 11/12 financial year, with over 100 students still enrolled. MIT is pleased with the level of engagement within the automotive industry and proud to be providing training to increase the professionalism of the industry. The Federal Government has provided incentives that support the course. The ongoing collaboration between MIT and Auto Skills Australia (ASA) has allowed MIT to provide continuous feedback in the development of the AUR12 training package and National Workforce Development Fund (NWFD) programs. Under the NWDF, MIT has provided training to over 450 participants in the automotive industry. This has included programs for vehicle loss assessors, parts interpreting, and hybrid & battery electric vehicles. MIT has trained in excess of 1500 apprentices and trainees over the financial year with a graduation rate of more than 400 tradespersons for our industry. We understand that there must be a conscious effort to maintain the current enrolment rate against existing qualifications while growing new business lines. The financial year has seen an approximate increase of 30% enrolments for apprenticeships alone and a total enrolment growth of 67% since July last year.
MIT has undergone two significant audits during the financial year. Results from the renewal of registration audit and an AVETMISS audit were excellent and can be linked to our genuine commitment to continuous improvement and the dedication of the staff at MIT. These results provide a licence to trade as a Registered Training Organisation for the next five years.
For those of you that had the pleasure to work with Brett would know the time and effort he devoted to MIT, and the success and growth that proceeded can be attributed to this work. On behalf of all MIT board and staff, we wish Brett the best in his future endeavours. Paul Kulpa A/g Managing Director MTA Institute of Technology
The primary focus of MIT will continue to provide quality training and service to the students and employers at all times. MIT’s awareness of industry requirements ensures we provide apprentices and trainees with skills and knowledge about current and future trends in industry. Our training staff have a high level of knowledge and experience in the automotive industry, which provides an advantage over our competitors. This is demonstrated in particular by one of our trainers, Zak Zuiderduin, who was nominated as regional finalist for the Queensland State Training awards.
Governance The Board of Directors of MIT ensures that the strategic plan and corporate governance of MIT is aligned with the Association’s expectation. The Board of Directors over the 2011/12 financial year consisted of: • The Honourable, Tom Barton – Chairman • Mr Glen Ford – Deputy Chairman • Mr Mark Brady – Director • Mr Steve Ghost – Director Finally, I would like to take the opportunity to thank Mr Brett Dale, our recently resigned Managing Director, who took up a management position in the Health industry to educate and train doctors in the Northern Territory. Motor Trades Association of Queensland Industrial Organisation of Employers 13
Member Services and Support I would like to extend my gratitude to all the members that have provided us with feedback on the issues impacting the various industry sectors throughout the year.
Kellie Dewar General Manager MTA Queensland
My sincere thanks to all of our Divisional Committees for their work and dedication over the past 12 months. Your on-the-ground knowledge and expertise has been invaluable for us in formulating policy positions which truly represent the needs of each industry sector. Your feedback has also assisted us in developing new ways to engage with our members in a meaningful way.
The year in review It has been a challenging but rewarding year for MTA Queensland. I would like to extend my gratitude to all the members that have provided us with feedback on the issues impacting the various industry sectors throughout the year. Your feedback, whether provided via formal Divisional Committee meetings, or informally by phone or email has helped us immensely in identifying industry issues and addressing them in a timely way. Where we have been made aware of specific issues we have often been able to proactively engage with decision-makers to suggest workable solutions which don’t unnecessarily increase red-tape. As ever, members are invited to attend and participate in Divisional Committee meetings. Division meetings are held quarterly, usually after hours. Even if you don’t want to nominate to become a committee member, feel free to come along to the Annual General Meeting for your Division and share your views about the issues affecting your sector. We find that these meetings are a great way to make new contacts and to discuss your views with like-minded people working in your industry. Some Divisions currently have positions vacant in their committees. If you are interested, please contact me or any one of the members of your committee to register your interest. 14 Motor Trades Association of Queensland Industrial Organisation of Employers
MTA Queensland image makeover We will shortly begin a marketing and advertising campaign to raise the profile of MTA Queensland with consumers. By making our already trusted brand more recognisable, we aim to persuade consumers of the benefits of choosing an MTA Queensland accredited member. This will help our members to get an edge on their competition and help you to grow your customer base. I’m excited to announce that MTA Queensland has recently appointed Dani Fioretti. She will take on the role of Public Affairs Manager to help us build our profile within the industry and also more broadly with consumers in the general public. Dani will be responsible for engaging with the media and building our image with a view to expanding our membership base and capitalising on our standing as the peak body representing businesses in Queensland’s automotive industry. As part of this task, and in response to your feedback, we have already begun planning a major overhaul of our website to make it more user-friendly and accessible. Our long-term goal is to make the MTA Queensland website the starting destination for industry and consumers seeking information, products and advice related to the automotive industry.
Advertise your business with us! As part of the website overhaul, we will shortly be contacting all members to gather details to create personalised business profiles which will be accessible to consumers on the MTA Queensland website. The profiles will contain contact details and a comprehensive list of the services you provide as well as useful information on trading hours and accepted payment
MTA Queensland is currently in discussions with several local Councils including Brisbane City Council to have our Green Stamp Environmental Program recognised. methods. We think these profiles will be an invaluable advertising tool, particularly for members that don’t have their own web page.
Attracting new talent into the industry I’m thrilled to advise that MTA Queensland has successfully tendered for funding from the Federal Government to employ three new Apprentice Advisors. James, Neville and Mark started with us in September and immediately begun their new roles providing information to school leavers, employers and career advisors about the apprenticeship arrangements available in the automotive industry. Each of the new advisors is a former tradie themself, so they are uniquely qualified to give candidates advice about the kind of jobs available in the industry and to talk about the benefits and challenges associated with each sector. The advisors will also work closely with VET coordinators and employers in the industry to provide tools and strategies to help apprentices successfully transition into the industry. Between them, James, Neville and Mark will service South-East Queensland, the South-West and Darling Downs, Central Queensland and North and Far North Queensland.
New Corporate Partner – Pac Corp MTA Queensland is dedicated to using our members’ combined buying power in the marketplace to gain corporate considerations and discounts for all of our members. As part of this commitment, we recently joined forces with the corporate cost-cutting gurus at Pac Corp. At a discounted rate, members can engage Pac Corp to audit their business expenses in the areas of energy, telecommunications and waste disposal. Pac Corp will
then utilise their considerable network of contacts to act on behalf of the business to get a better deal on these services. We have already received great feedback on the significant savings Pac Corp has achieved for some of our members.
Special member services Green stamp environmental audits MTA Queensland is available to undertake environmental audits for members in Collision Repair, Mechanical and New Car Dealer Divisions. The audits assess the environmental impact of the business and the Green Stamp program provides businesses with tools and advice to help businesses manage their environmental impact. Members who complete the program will receive ‘Green Stamp’ certification and will have access to logos and marketing materials designed to attract customers who prefer environmentally conscious service providers.
well as the Board and each of the 11 Divisional Committees have done a stellar job this year and I thank them. I would also like to recognise our hardworking Divisional Executives Ben Chesterfield, Andy O’Hearn and Cameron Carter. These guys are on the road daily, visiting members all over Queensland and are a great point of contact if you ever need to raise any issues. Thanks also to our busy Industrial Relations team, ably lead by Ted Kowalski. I also want to thank Technical and Stationery Support Manager Russell Sticklen and Publications Manager Mike Taylor for their ongoing commitment to providing high-quality services and resources to our members. Special thanks also to the Chairmen, Committee and Board members for their assistance over the past year. Kellie Dewar General Manager MTA Queensland
MTA Queensland is currently in discussions with several local Councils including Brisbane City Council to have our Green Stamp Environmental Program recognised. Once we have the program recognised by Council we will then work towards negotiating discounts on annual environmental licensing fees for members that complete the Green Stamp certification program. These discussions are ongoing and MTA Queensland will notify members as soon as we reach an outcome.
The MTA Queensland team I would also like to take this opportunity to highlight the hard work undertaken by my staff during the past year. My administration team, who work tirelessly to provide support to all members as Motor Trades Association of Queensland Industrial Organisation of Employers 15
Member Services and Support continued The Fair Work legislation provided for a review of its operations two years after commencement, and that review commenced on 1st January 2012. Industrial Department Report
Ted Kowalski Manager Industrial Relations MTA Queensland
The Fair Work system has now been in place for just over three years - having commenced a phased introduction on 1st July 2009. All of our members are now covered by either the Vehicle Manufacturing Repair Services and Retail Award and/or the Clerks Private Sector Award. The move to a unified national system will ultimately produce a more simplified and consistent set of industrial relations rules for all businesses - but there remain a number of issues which have yet to be addressed. The Fair Work legislation provided for a review of its operations two years after commencement, and that review commenced on 1st January 2012. MTA Queensland, along with our sister motor industry associations, and in consultation with our national body AMIF, have been active in making submissions relating to changes that we felt needed to be made to the awards covering our members. These suggested changes were, primarily to resolve anomalies created at the time the modern awards and the National Employment Standards were put in place. One of the most significant issues was whether annual leave loading is payable on termination of employment. Our Vehicle Award, as well as a number of other modern awards applying in other industries, contain a provision which states that leave loading is not payable on termination, while the National Employment Standards (NES) suggest that it is payable. This has lead to significant disputation between our members and the Fair Work Ombudsman. Thankfully, the review task force, set up by the federal government, recently produced a report which recommended that leave loading only be paid on termination where the
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modern award made such a provision. It remains to be seen if the government will act on that recommendation. The other major issue currently being examined is the wage structure for apprentices and trainees. Initially, it was not thought that this matter was an appropriate issue to be addressed at this review, however, the government issued a statement which effectively allowed for it to be progressed. The unions have submitted a claim which, if granted, would see very substantial across-the-board increases to apprentice and trainee wages. The industry has collectively acted on a survey of members done some months ago to prepare an alternative proposal which would still address the related problems of poor retention rates of apprentices and the need to attract more apprentices into the industry, while providing for more realistic, and staggered, increases. Fair Work Australia will be arbitrating this claim over the next few months. Ted Kowalski Manager Industrial Relations MTA Queensland
Australian Automobile Dealers Association Queensland MTA Queensland advocates the State Government introduce one category of written-off vehicles and classify assessed as a total loss as statutory write-offs, as a means of reducing motor vehicle theft and improving road safety. This is my third and final report to members on the activities of the Australian Automobile Dealers Association (AADA-QLD) Queensland. I now pass the baton to our new President, Garth Madill. Len Daddow President AADA Queensland
The year 2011-2012 has again been a challenging one of a similar nature to the previous year. With the change of State Government we see renewed opportunities for change. Our state’s financial position is in dire straits and our ‘can-do’ Premier and Ministers must arrest the slide. We cannot afford to continue to fall into deeper debt. Like any good business, we have to trim our overheads, reduce waste, find new ways to do more business and improve our bottom line. It is basic business common sense. In our state’s environment today we are all in a battle of survival. A considerable ‘bone of contention’ has been the operation of the state Government Q-FLEET. Q-FLEET is the Queensland State’s biggest new car and used car operation. It is our biggest Franchise operation, bigger than any franchise dealer and it is a case of the State Government in competition with private enterprise. That’s not what government is about. MTA Queensland and AADA-QLD line of communication with the motor industry is our magazine ‘Motor Trader’ and I commend you to the July 2012 edition and the Policy/Viewpoint by Kellie Dewar General Manager MTA Queensland on the subject of Q-FLEET. A factual assessment and how difficult it is to justify as a legitimate business of Government as is GOPRINT and QBUILD. Stand by for future developments.
Motor Accident Insurance Act Of great disappointment to Motor Dealers was the bans on commission for CTP Insurance Premium. This act took away a legitimate fee for providing a ‘one stop shop’ by franchise motor dealers as part of the “in house registration” arrangement new car dealers provide their customers. The new state government provides us with an opportunity to change this regulation.
Deregulation of Safety Inspection Fee The current regulation fee of $65.55 to purchase a safety certificate is inadequate compensation for a comprehensive check that typically takes more than one hour, according to established best practice. AADA and MTA Queensland advocate deregulation, as the current one size fits all approach encourages safety short cuts.
Annual RWC We will again put the case to the new government for the above check. It is interesting to note RACQ Policy: RACQ believes annual inspections would impose unnecessary costs and inconvenience on motorists compared to the safety outcomes delivered.
One Category written-off vehicles MTA Queensland advocates that the State Government introduce one category of written-off vehicles and classify vehicles assessed as a total loss as statutory write-offs, as a means of reducing motor vehicle theft and improving road safety. AADA believes a single category can be introduced as per the NSW legislation.
18 Motor Trades Association of Queensland Industrial Organisation of Employers Motor Trades Association of Queensland Industrial Organisation of Employers 18
MTA Queensland has long advocated that the Luxury Car Tax (LCT) should be abolished because it is inequitable, discriminatory and creates disincentive for production and sales of particular types of motor vehicles. Amendments to ‘Register of Repairs’ MTA Queensland believes the current legislation is both confusing and ambiguous, unnecessarily complicated and does not appear to take into account the detailed records that repairers are required to maintain for statutory compliance purposes.
payable in addition to GST, but is not payable on the full value of the vehicle – it is payable on 33% of the GST exclusive value that exceeds the LCT threshold.
Proof of Premises for Car Dealers
Sales of Motor Vehicles – Consumer Protection MTA Queensland advocates a number of amendments to current laws to benefit consumers and protect the reputation of Motor Dealers whose integrity is diminished by “backyard” operators.
With more than 60 manufacturers and importers of vehicles supplying to the local market, Australia is the most diverse country in the world of vehicle models. In total there are 16.4 million vehicles on Australian roads.
MTA Queensland advocates that all individuals or businesses selling new or used motor vehicle must operate from a council approved business premises. The current laws, while requiring a person selling vehicles commercially to be licensed (under the Property Agents and Motor Dealers Act) does not require that person to operate from Commercial premises.
MTA Queensland strongly supports industry bodies and vehicle manufacturers working together through a self-regulated consultation process for repair information to be made available in real time (on-line) on a user pays basis.
This has resulted in a lack of protection for consumers in regard to their rights (statutory warranty, cooling-off period) when they go to someone’s private residence to view a vehicle – the clear assumption is a ‘private sale’, which may not be the case.
• That there be a displayed safety certificate which is required by law when selling a used car.
Luxury Car Tax
Exempt Vehicles for Motor Dealers
Mandating the Repair Industry Code of Conduct
This issue caused confusion and needed to be clarified. So MTA Queensland has asked the Department of Transport and Main Roads to amend section 4 of the Vehicle Registration Regulation to provide that unregistered vehicles that are dealers stock being used within the dealer’s business premises are exempt vehicles. We were successful in our efforts with the amendments taking effect from 21 September 2012.
All states work to a “Motor Vehicle insurance and Repair Industry Code of Conduct” which is mandated in NSW and voluntary in all other states.
Right to Repair Information
MTA Queensland has long advocated that the Luxury Car Tax (LCT) should be abolished because it is inequitable, discriminatory and creates disincentive for production and sales of particular types of motor vehicles. Unfortunately governments rarely abolish a tax. To that end we advocate the following: • The LCT threshold be lifted to $100,000.00 • The tax rate be fixed at 25% • Accessories be excluded • The mechanism to calculate the threshold be changed The Luxury Car Tax applies to cars with a GST inclusive value exceeding the LCT threshold ($57,466). LCT is
This ensures that, as CTP insurance is not available for exempt vehicles, dealers may obtain liability insurance to cover unregistered vehicles used on their premises. Any registered vehicles that are dealers’ stock used in the area are covered by CTP insurance policy.
Key changes include: • That the inclusion of Dealers License numbers be compulsory with all car advertisements as in all other Australian States. • That all new and used motor dealers be required to provide a statement of disclosure to buyers in addition to the sales contract.
• That there be one category of license for selling motor vehicles – a dealer’s licence.
MTA Queensland advocates the Code become mandatory in Queensland, to provide a more binding agreement between repairers and insurers.
Unfair Dismissal Laws MTA Queensland considers the current ‘unfair dismissal’ legislation to be a disincentive for small business to hire additional employees. The incidence of unfair dismissal claims has risen dramatically under the current Fair Work legislation.
Motor Trades Association of Queensland Industrial Organisation of Employers 19
Australian Automobile Dealers Association continued AADA Qld is committed to dealer servicing and continues its discussion with industry parties on all matters pertaining to the Queensland Franchise motor dealers. Abolishing Stamp Duty on Motor Vehicle Transfers MTA Queensland advocates the abolition of stamp duty on motor vehicle transfers. This revenue raising measure is a regressive tax, being in part a tax of a tax. ‘Private to Private’ sales now account for close to 55% of total transfers with no stamp duty payable. AADA Queensland is a stakeholder in the presentation of the following documents: • Guidelines for the tyre product stewardship scheme • A strategic assessment of the australian body repair industry.
On the National scene AADA – National Canberra Much settling in business has been going on behind the scenes over the last 12 months. Our team is lead by Porsche dealer from Adelaide in Marc Cheney AADA P/L Chairman. In Canberra AADA CEO is Richard Dudley and our Principal Policy Officer is Colin Duckworth. To their credit a line of communication to Dealer Principals throughout Australia has been introduced with a quarterly publication of the AADA newsletter. As we again establish contact with the Franchise Dealers of Australia a much-needed two-way revitalization is coming our way.
Amendments to the existing Australian Franchising Code We have almost finalized the development of amendments to the existing Australian Franchising Code.
Federal Chamber of Automotive Industry Meeting We have also actioned the third line
of attack on the issue of franchising which is to formally request FCAI to consider a proposal for a joint working party between AMIF/AADA and FCAI to establish ‘baselines’ that might be included in any future automotive retail franchise agreement.
NSW Fair Trading tackles dealer franchise issues The thorny issue of vehicle dealer franchise agreements is set to get an airing in New South Wales under the proposed new legislation to govern the motor trade. NSW Fair Trading is seeking feedback from stakeholders on the issue, based on concerns raised by the NSW Motor Vehicle Industry Advisory Council that the current system results in “an unfair relationship between motor dealers and motor manufacturers in their franchise agreement”. The Council told the government that the dealer-manufacturer relationship was characterized by a power imbalance to the detriment of small business and ‘mum and pop-run’ motor dealerships.
Dealer Line Council Chairs It is the intention of AADA National to call a meeting of Dealer Council Chairs before this year is out. The suggestion is that all Chairmen will come to AMIF House, Canberra, for that meeting. This will be advised in due course.
Queensland Dealer Servicing AADA Qld is committed to dealer servicing and continues its discussion with industry parties on all matters pertaining to the Queensland Franchise motor dealers. In conclusion, may I commend to all motor dealers and in particular to all
20 Motor Trades Association of Queensland Industrial Organisation of Employers
franchise Dealer Principals, the MTA Queensland Motor Trader publication. This is the best magazine of its kind, to keep up to date and abreast of all happenings in Queensland’s motor industry. Make sure it goes across your desk before passing it down the line of command. Finally my thanks go to Kellie Dewar, our General Manager MTA Queensland, and her staff for a job well done. Never give up and never give in must be her motto. For the year just gone I thank the members for their contribution to the Association and my committee for their good direction and encouragement. Len Daddow President AADA Queensland
Automotive Engineers Division The “Right to Repair” is a perceived issue of independent repairers not having access to enough information to service and/or repair motorist’s vehicles to a safe standard for their customers. My past term in office has been both eventful and enjoyable, with increases in technology, employment issues, right to repair issues, environmental issues and the formation of a National body to represent the automotive engineering sector of our industry. Charlie Serchen Chairman AED
2012 saw our new purpose built building at Eight Mile Plains finished and waiting for occupancy. It is well used so far with training, meetings and functions. Our AED committee held our first meeting there on February 20th and it all worked well including a tour of the building and workshop by our capable training staff. Board meetings and National meetings have also appreciated the capacity and facility of the building design. Congratulations must go to Kathy Winkcup and Brett Dale for their great efforts as project managers. Early in our twelve months, the “Right to Repair” became a national and controversial issue, because of the difference of opinion between the dealer and the independent repair divisions of both MTA Queensland and the general and national motor vehicle industry. The “Right to Repair” is a perceived issue of independent repairers not having access to enough information to service and/or repair motorist’s vehicles to a safe standard for their customers. Also added to this is the fact that motor vehicles are racing away with improved technology. This is an ongoing issue that may not end in total agreement, but I can say that within the MTA Queensland organisation we work with the situation on an “agree to disagree” arrangement. We hope we can suitably improve on our current agreement. Employment issues continued to plague the industry, with employers being increasingly frustrated with the lack of response to expensive advertising and
then only to find they have started an unsuitable applicant. The resource sector seems much more appealing to both apprentices and qualified tradesman and in this regard the playing field does not seem too level. For many years now we have struggled to find a suitable solution, with no real result, so far. Approximately 25 people from all over Australia attended the inaugural meeting of the Australian Automotive Repairer Association to discuss issues affecting our industry. This body consists of Divisional Chairmen and Divisional Managers from all of the Motor Trade Association throughout Australia and was formed to move issues of concern to the federal arena, so that we have a national voice. Subjects on the agenda included: Right to Repair, Skills Training & Development, National Safety Issues, National Licensing Issues, Impact of ACL and PPSR and Emission Laws. The AARA provides us with the best chance we have ever had to put our issues on the national front and to that degree, we must be prepared to stand up and be counted as a large group. Keep in mind, that in order for us to deal with these issues effectively, we must accept that there is only strength in numbers. Elections were held for our committee, we have 12 members on our committee again this year. The members of our committee, whilst all being business owners, will also provide a variety of responses in any discussion we hold on any issue. This, I appreciate, and it makes for an active committee trying to improve deficiencies in our back yard. I look forward to another eventful 12 months with this supportive group of contributors.
Motor Trades Association of Queensland Industrial Organisation of Employers 21
Automotive Engineers Division continued
I also look forward to the next twelve months of working with a great AED committee, (including our two members from Cairns & Townsville), MTA Queensland staff, fellow Board members, Government Agencies and other members who make the effort to work with us from time to time. Charlie Serchen Chairman AED
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Automotive Parts Recyclers End of life vehicles remain on the agenda and with the worldwide decline in scrap prices, this is about to become a major issue in Australia.
Glen Ford Chairman APRD
It has been a sporadic year for recyclers in Queensland with sales results, salvage auction numbers and prices continuing to increase. Both APRD and APRAA have sent letters of objection to the auction houses with the reply being increased costs are something that we face all the time but our selling price remains the same - or less in many cases. MTA Queensland and MIT have moved into Queensland’s Automotive Centre of Excellence at Freeway Office Park, Eight Mile Plains. It is a most impressive building and I would encourage all members to have a visit. I would again like to thank everyone involved in the last year in making this project a success. You are welcome to join us at all committee meetings and email updates are sent weeks before with meeting details. Please RSVP so we know if you are attending - I am available on my mobile or see me at the salvage auctions; I attend most in an effort to avoid the internet fees! This year we have had a change in State Government and we have monitored closely which way they would go with stat write offs. At this stage, it looks like they will implement the National Theft Reduction Council Criteria. This was due to be starting on the 1st of October 2012 but has been delayed until the 1st of December 2012. Whenever it is implemented, it should be an improvement for recyclers as there will be a large increase of stat write offs and a reduction of competitors. The NSW RTA has had a review of their stat write off laws with only small changes and the Australian Capital Territory has now enforced the same legislation. The effects of the new carbon tax are yet to be realised with not much information available to our industry from the Federal Government. South Australia, Western Australia and New South Wales were trading roughly the same as Queensland with Victoria
reporting a large downturn in profit, forcing some to downsize. End of life vehicles remain on the agenda and with the worldwide decline in scrap prices, this is about to become a major issue in Australia. Internationally, many have moved to the requirement of proof of ownership of scrap metal in a bid to reduce theft. In the USA, external air conditioners in schools and churches have become a target for scrap metal thieves. Nationally, APRAA had their most recent meeting in Melbourne - announcing their national 2012 APRAA – Pinnacle Trade Show & Conference at Sydney Olympic Park 18th-20th October 2012. This event is a must for our industry and registration closed Friday 21st September. APRAA has secured an international keynote speaker as this year’s feature presenter as well as numerous speakers to present informative sessions all focused on the various aspects affecting businesses within the auto recycling industry. I have been encouraging all members to attend as the Conference organisers have reacted to member’s requests for better content and reduced cost for staff to $99, while retaining delegate cost at the 2008 price - $660.00. An extra bonus of attending is that the Australian International Motor Show is only down the road! I would like to remind you all that the scholarship fund is available to your staff with the form online at the APRAA website. Don’t forget the conferences in the USA and the International Round Table, ARA, is in Orlando in late October and URG as usual in Denver in April 2013. In conclusion I would like to thank the committee and staff of MTA Queensland for their assistance in the past year and look forward to the next year ahead. Glen Ford Chairman APRD
Motor Trades Association of Queensland Industrial Organisation of Employers 23
Engine Reconditioners Association of Queensland The New Zealand Engine Reconditioning conference was held recently and the Australian National body decided to send the Australian chairman to the conference for goodwill and to promote the Australian conference in 2013. Another year has come and gone in a flash and I - like everyone else - am wondering where it went so quickly.
Mark Bryers ERAQ Chairman
The Engine Reconditioners Association of Queensland currently has 67 members and we are having 4 meetings a year. Three of these meeting were held at MTA Queensland house and one at SkillsTech TAFE. As no surprise the TAFE meeting had extremely good numbers. Attendance at the meetings is slowly growing however we still need support and input from more members. We will be holding at least 2 of the general meetings at either industry members or suppliers premises this year. This year has had a few challenging moments with the new national training certificate III in Automotive Engine Reconditioning being done. Auto Skills Australia was given the job by the government to redefine the training modules for the ERA so that it is a truly a national training program. They visited with each state and the training facilitators for their input. After a lot of debate the modules have been finalised. The new AUR’s were sent out by email to each member of the ERAQ. The national conference to be held on the Gold Coast in 2013 has had a great response from local and overseas suppliers, and looks to be a firm goer. There will be a letter sent to all members shortly asking if they will be supporting the conference; if the numbers are sufficient then it will be on. The New Zealand Engine Reconditioning conference was held recently and the Australian National body decided to send the Australian chairman to the conference for goodwill and to promote the Australian conference in 2013. The national body of the ERA has spent a lot of time deciding on a
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profitable way to manage Autospecs. There are steps being taken to align the program with other countries’ resources and then either bring the program on line or distribute nationally on CD - or to put it on line to make it easier for all members. The ERA of A is investigating having a website, which will explain to the general public what Engine Reconditioners actually do - it will also have member’s information location phone numbers etc, warranty cards etc. All ERA members will have access to the website with a pass code. Autospecs will be online; it will also have a technical area, question and answer section, etc. You will also be able to send questions to every engine reconditioner in the country and they can reply if they have the answer. Mark Bryers ERAQ Chairman
National Auto Collision Alliance Educating the consumer and ourselves is highly important and thus we have embarked on the choice of repairer campaign to publicise the consumers right of their choice to nominate a repairer. We are currently going through many changes within our industry, internal and external and with it come the many added pressures of doing business.
Mark Brady Chairman NACA
The majority of body shop owners are heavily reliant on insurers and this produces several issues that we have been working on; on a state level and on a national level with AMBRA - the Australian Motor Body Repair Association. Some insurers have been very proactive in their dealings and consultation continues forward on a number of issues, which can only be positive for both parties. On the other side of the coin other sectors are defiant in their dealings and continue to do business on their terms without regard and this has bought about much tension. The answer involves many spokes to the wheel with a main theme of education and industry awareness. How do we achieve this? The answer is not a simple one. It involves our new government being proactive and willing to make changes to legislation and regulation. Currently discussions are underway with a view to implementing one class written off vehicle. At the same time the code of conduct into our industry needs to be strengthened and mandated to be a true force for change. Both Gold Coast City Council and Brisbane City Council have been engaged on a local level to help strengthen regulations and the green stamp program has been re-introduced for our members. Educating the consumer and ourselves is highly important and thus we have embarked on the choice of repairer campaign to publicise the consumers right to nominate a repairer. At the same time the issue of realistic times and rates is being addressed and common sense needs to be addressed on both sides of the fence. Several information sessions have been held on “EMTA” and we hope to expand on this further. We cannot price ourselves out
of the market but continual increases in labour and operational costs cannot be ignored. Change is difficult for some but our businesses cannot continue to do business and charge the same way it did 30 years ago. Technology has changed and with it the added cost in capital and training goes up as well. We no longer repair vehicles to “look good”, but to a manufacturers specification to perform to engineered standards. We need to be efficient and well trained in the marketplace and understand our true costs of doing business and make sure any costs we incur are on charged and can be verified and supported. We are responding to this by looking at a system of self-regulated shop grading that should limit the theme of “poor repairs” and raise the standards of body shops. We see this as a benefit in the eyes of members and the consumer by improving our image and efficiencies. Adding to this we have been using industry consultants to provide the platform for members in understanding costs in business and several classes have been held on industry KPI’s and estimating. There will always be challenges in our industry and it is great to see a 10% increase in membership. More repairers are becoming active and networking is a great way of keeping momentum going. We must take control of our businesses and make sure that we are educated and keep up with change. This comes at a price. “Run your shop like a business and not a charity”. Get educated, know your business, don’t play the blame game and get involved in industry. I would like to thank the committee and particularly Ben Chesterfield for his help and hard work throughout the year. Mark Brady Chairman NACA
Motor Trades Association of Queensland Industrial Organisation of Employers 25
Queensland Farm and Industrial Machinery Dealers Division While the building construction industry has been slow the mining boom in Queensland brought life back for many Industrial Machinery dealers over the past year. Business and Industry Agriculture
David Fraser President MTA Queensland and Chairman QFIMDD
The 2011 winter season saw above average to very good Wheat, Barley and Chick Pea crops produced across the major crop farming areas of Queensland. Full profiles of sub soil moisture, following the floods from earlier in the year, encouraged good winter crop plantings, and an above average harvest yields resulted across the board. The summer crop season started spectacularly with high cotton prices, good sub soil moisture and full on farm water storages, leading to a record cotton crop plant. After a cool wet start to planting in Southern Queensland, many growers were forced to replant making the season later than normal. However the growing season was very kind and record cotton crop produced. Unfortunately the crop seemed to be well under sold due the nervousness created by the floods and devastating losses from the previous season. This resulted in many growers not achieving the record prices quoted at planting time. While we achieved record yields in the cotton sector, we also saw record Sorghum yields. Unfortunately we also saw 1970 prices for the commodity, as a result a large amount of sorghum is still being stored on farm which is now seeing these growers reaping the benefits of having on farm storage. Machine sales held reasonably strong, aided by the speculated high cotton prices, and a very strong US exchange rate. However as always in these situation manufacturers can’t meet demand and therefore we saw a large numbers of grey imports hit the Australian market. Good late model second hand farm machinery is holding strong values and is in short supply. The self propelled sprayer market is
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holding strong, and the tillage market remains very weak. I believe we will see a turn in the tillage market over the next few seasons, with the focus on some weeds being hard to control with chemicals in zero and minimum tillage farming practices.
Business and Industrial While the building construction industry has been slow the mining boom in Queensland brought life back for many Industrial Machinery dealers over the past year. The huge expansion in coal, and coal seam gas infrastructure and production in Queensland has spurred on business for fringe contractors supplying services to the mining sector. All industrial machinery types have been in demand and after a long slump in industrial machinery sales it has taken the past 12 months for many manufacturers to be able to meet the increased demand for new construction machines. The mining sector has placed strains on machinery dealers staffing needs. This has been created by mining staff demands, having a two tier effect on dealers, whereby dealers need more trained staff to meet the commitments of increased sales, while losing trained staff to the mining sector due to the high wages offered in the sector. The unfortunate outcome of losing staff to the mining sector is that we are seeing good skilled industry trained technicians leaving the mechanical trade, as the mines aren’t using their skills in the mechanical field. Many of these technicians end up driving trucks or acting as trades assistants to on-site machinery service contractors. The unfortunate result for many dealers is that while training staff is costly, not retaining staff is more costly. The immediate result in retaining experienced, and product trained
staff will be higher costumer chargeout rates, to enable dealers to pay higher wages to retain good staff.
Ag Show 2012 2012 is the 20th year of Heritage Bank Ag Show, and post this year’s event we will see major changes, with CEO Peter Irwin retiring. Peter has managed the event since it’s inception. Moving forward, 2013 Ag Show will be event managed by the RASQ management committee in cohesion with the 3 event partner directors and the partner management committee. The Queensland Farm and Industrial Dealers Division of MTA Queensland hold a one-third partner share in Heritage Bank Ag Show, and are proud to be a partner in such a successful long-running premier field day event. As Chairman of the Queensland Farm and Industrial Machinery Dealers Division (QFIMDD) and President of MTA Queensland, I applaud the Board and Management Committee in producing such a world class machinery show. I also wish to personally thank Peter Irwin for the dedication and commitment he has shown over the past 20 years in making Ag Show such a successful event. I wish Peter all the best in retirement.
in all aspects and issues related with MTA Queensland divisional matters. Please join me in wishing Cameron all the best in his new role. On behalf of the QFIMDD members, I would like to extend a thank you to all the Executive Staff at MTA Queensland. Their support and tireless efforts in assisting our division members is greatly appreciated. In conclusion, I would like to extend a thank you to the QFIMDD committee, Grahame Lawson, Rob Vandersee, and Donna Harper for their assistance throughout the year, and welcome our new committee member Mike McNamara of Burnett Land Machinery in Bundaberg. Mike will bring a wealth of knowledge and experience to the committee as he has had many years association with the farm machinery industry in Queensland. David Fraser President MTA Queensland and Chairman QFIMDD
MTA Queensland I would like to welcome Cameron Carter, to the position of Divisional Executive for QFIMDD, of MTA Queensland. Cameron joined MTA Queensland in late 2011, and was allocated the QFIMDD division when Ben Chesterfield moved to take over other industry divisions. Like Ben, Cameron has an extensive knowledge of the motor industry. Cameron previously operated and managed automotive panel repair businesses before joining the insurance industry as an assessor. He is eager to be involved Motor Trades Association of Queensland Industrial Organisation of Employers 27
Queensland Motorcycle Industry Division The year saw a large increase in ATV sales in to the west due to both good seasons and a strong Aussie dollar reducing the prices of these models.
Paul Peterson Chairman QMID
The QMID and its associated industry has seen the bottom of the market and is experiencing small percentage growth figures across the board, with some manufactures capturing significantly more of the market then others. This year saw a large increase in ATV sales in to the west with good seasons and a strong Aussie dollar reducing the prices of these models. On the down side increased rural deaths (160 since 2001) resulting from ATV rollovers has attracted increased government scrutiny and the release of a public discussion paper. Growth in the non rural sector of the market came from the “LAMs” market (Learner Approved Motorcycles). This is a good indicator of future market growth potentials as all these riders are new to the market. New riders boost all areas of the industry, training, new and used, accessories, parts and service. The State Government is continuing to look with QMSWG at motorcycle fatalities, safety and licensing. Issues arising from this will include appropriate blood alcohol concentration levels, dress standards, new less graphic advertising campaigns and general public awareness and driver education. These studies are ongoing. Over the next 12 months the industry will no doubt be faced with more issues relating to road safety with further reviews planned. The positive to this is that manufacturers are predicting upward of 7% growth in the market, with the high A$ is keeping both the bikes and accessories affordable. It is important that the QMID stay abreast of the issues faced by its members and the industry, and this can only occur if members voice their opinions through this forum. With the State Government’s enquiry into Licensing, MTA Queensland - with the Q-Ride trainers and members -
28 Motor Trades Association of Queensland Industrial Organisation of Employers
produced an in depth submission to the Department of Transport, Housing and Local Government, highlighting both the positives and points needing review under the current system. We responded to the terms of reference, which are: • The road safety benefits of introducing enhancements or changes to the motorcycle licensing system; • The efficacy of the Q-Ride and Q-Safe training and/or assessment processes within the Queensland licensing system and whether they align with the best practice evidence based adult training/education principles; and • Whether Q-Ride rider assessment is performed in a manner that aligns with best-practice evidence based adult education and assessment principles. In conclusion, I would like to thank the Staff of MTA Queensland, especially Kellie and her team, who helped keep the issues of the motorcycle industry alive, and for representing us at government and industry meetings that I was unable to attend. I would also like to congratulate the few members that have put up their hands to give up their time and sit on the QMID committee. Paul Peterson Chairman QMID
Rental Vehicle Industry Division The introduction of the Personal Property Security Register has created a degree of uncertainty as to the security of vehicles on Long Term leases and the degree of compliance required by vehicle rental companies. The 2011-2012 financial year has once again seen car rental companies facing challenging times due to the ongoing GFC and patchy local trading conditions throughout Queensland.
Chris Ching Chairman RVID
Members are reporting increasing numbers of rental defaults, unpaid damages and stolen vehicles. The possibility of setting up a “Bad Renter” database has been a subject of ongoing discussion. However, it has now been confirmed that due to Australia’s strict Privacy Legislation, this is not feasible and can only be carried out on an internal basis within companies.
companies & lapsed memberships and placing more emphasis on shared social activities. The year has seen the MTA Queensland adminstration and training staff make the move to Queensland’s Automotive Centre of Excellence. This is a wonderful example of forward thinking and sets a precedent for all other states to follow. I would also like to take this opportunity to tender my sincere thanks to all the staff for their tireless assistance and enthusiasm throughout the year. Chris Ching Chairman RVID
On a legislative front, the introduction of the Personal Property Security Register has created a degree of uncertainty as to the security of vehicles on Long Term leases and the degree of compliance required by vehicle rental companies. The committee is currently in the process of a comparison survey of the relevant sections of the NZ legislation (which has been in force for over 10 years) and the Australian model, with the view to the possibility of a submission to Government at a later date to instigate changes to the definition of a “Long Term Rental”. Productive meetings have been continuing with the RTA to formulate an automated tolling solution for rental vehicles. Several companies are now accessing this technology with more to follow shortly. Membership is currently standing at 14 members and 9 locations, which is disappointing in view of the benefits to be derived from services provided by MTA Queensland and the value of a united voice. It is proposed to embark on a membership drive this coming year, targeting the smaller independent Motor Trades Association of Queensland Industrial Organisation of Employers 29
Service Station and Convenience Store Association of Queensland Workplace Health & Safety Queensland will be conducting a state-wide audit program of 100 service station premises over the coming months. It seems that 2011 and 2012 are years of renewed legislation and government intervention in the private sector, particularly in Queensland.
Tim Kane Chairman SSCSAQ
We saw a flurry of activity within numerous state government departments before our state election was held in March 2012, some of which I must say has been unwarranted and unneeded. The sum of these changes amounts to large amounts of time and money having being taken from the running of our businesses to comply with new requirements. From 18 November 2011, all Queensland retailers who were selling smoking products had to ensure that all smoking product displays were covered in accordance with new laws, and that existing mandatory signage was removed as well as a new A4 mandatory sign being displayed at a relevant point of sale.
DGSM Act) and Workplace Health and Safety Act 1995 have been repealed. We must now comply with specific sections in chapter 3 and chapter 7.1 of the Work Health and Safety Regulation 2011 (the ‘WHS Regulation’). Workplace Health & Safety Queensland will be conducting a state-wide audit program of 100 service station premises over the coming months. The focus of the audit is safe storage and handling of hazardous chemicals. In order to achieve compliance with the legislation, a guide has been produced, which can be found online. With the introduction of The Carbon Tax on 1 July 2012, it is still hard to quantify what the full impact will truly have not only our businesses, but also our own households. It may take not only months but years to realise the full impact of this, as it has only been in place a few months at time of writing.
As of 1 October 2012 all tobacco manufacturers in Australia will be starting to produce the new dreaded plain packaging for all tobacco products. This is to allow them and retailers to comply with the new legislation by 1 December 2012. To date, the tobacco manufactures are still appealing this legislation.
A code or standard covering petrol price signs displayed by service stations is being sought. The aim of such a code would be to ensure service stations display only the price at the pump, and not to mislead motorists with a discounted price, which is not universally available.
With our Flammable Liquid Licences, Councils no longer have any legislative power to administer and regulate the storage of flammable and combustible liquids. We are not required to hold a license with Council to store flammable and combustible liquids under the new WH&S Act.
The committee has resolved to have further discussions with the Office of Fair Trading regarding the current confusing pricing information and the development of such a code. The committee would prefer to see this set as legislation rather than a broad guideline. Fair Trading have agreed that any changes would benefit from a National approach.
From 1 January 2012 the Queensland Work Health and Safety Act 2011 (the ‘WHS Act’) regulates dangerous goods and major hazard facilities. The Queensland Dangerous Goods Safety Management Act 2001 (the 30 Motor Trades Association of Queensland Industrial Organisation of Employers
Other member organisations not only in Queensland, but in other states are also pushing for the issues to be addressed through their respective state government departments.
With this in mind, I understand this is now an issue that will now be discussed at a forthcoming Ministerial Council meeting (that is, a meeting of all Australian Fair Trading Ministers). Although a date has not been set, this will take place in November or December this year. It was also refreshing to hear that the other states had followed our initial initiative in pursuing this issue. AMIF are currently working with issues in the fuel retail sector, in particular shopper dockets and discounting. We have had numerous discussions with the ACCC at both state and national level. Richard Dudley from the AMIF has requested some Queensland participants to provide information to support our case. The SSCSAQ has changed the number of Committee members for the next election. The new committee size is now seven (7). I would feel remiss if I did not mention the help and assistance that Kellie Dewar and her team has given both the committee and myself. I would also like to congratulate Kellie in being appointed in the new role of General Manager MTA Queensland. I would also like to thank my other committee members in the SSCSAQ for their support in this past year and look forward to working with them more in the next year. Tim Kane Chairman SSCSAQ
Motor Trades Association of Queensland Industrial Organisation of Employers 31
Tyre and Undercar Division of Queensland Our new state of the art administration and training facility in Eight Mile Plains is now fully functional and is arguably Australia’s finest industry training facility.
John Ruddick Chairman TUDQ
The big topic for this year’s Chairman’s Report has to be the change in state government earlier this year. The outgoing Labor government suffered one of the worst defeats in Australian political history, with the LNP being elected with a massive majority for the first time in their history. With spending cuts already well underway, I don’t think we will know the full impact that this change of government will have on our division for some time yet. In Divisional and Association matters, we have only held two meetings this year and that the attendance of each meeting has been reasonable. Our membership numbers are down from last year and we are currently sitting at a total membership base of 179. During my site visits and meetings with members throughout the past year, it is fair to say that, in general, business has been steady to strong although the mining and resources sector continues to cause major issues with members trying to retain and recruit staff. Our new state of the art administration and training facility in Eight Mile Plains is now fully functional and is arguably Australia’s finest industry training facility. I would encourage all members to get involved in the world-class training programs offered. 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 MTA Queensland website to view and download all Member Bulletins. Contact MTA Queensland directly for a copy to be sent to you. I would also like to remind all members that MTA Queensland and this committee are here for you, so should you feel that there are any industry issues you would
32 Motor Trades Association of Queensland Industrial Organisation of Employers
like addressed, please feel free to contact us so we can work with you to have your issues addressed. In closing I would like take this opportunity to thank the staff at MTA Queensland and the Committee Members for their support throughout the year and I look forward to the challenges that lie ahead in 2013. John Ruddick Chairman TUDQ
Used Car Division With the Government no longer operating as a Motor Dealer, we will regain some more of the market share in sales that had previously been lost to us. First of all I would like to congratulate Kellie Dewar on her new position as General Manager. She has a very good understanding of our Industry and MTA Queensland under her leadership is in very capable hands. Daryll Searle Chairman UCD
With the recent change of Government, we will see the abolition of Q-Fleet taking place in the near future. This is a result that we have been campaigning for over a considerable period of time and I believe that this in itself will bring gains to our Industry. With the Government no longer operating as a Motor Dealer, we will regain some more of the market share in sales that had previously been lost to us. The new Government is also currently holding discussions with us regarding other issues pertaining to our industry. Some of the items on the agenda to be discussed include: • Licensed Premises • Separating the Motor Dealers and Property Agents Act into two separate bodies • The reduction in the amount of paperwork required when selling a vehicle I look forward to a productive twelve months and hopefully with the new Government some positive changes at last. Finally I would like to thank Rod Pether and Don Gully for their on-going commitment, Steve Mason for his past support and Russell Hughes for nominating for the committee this year. Once again thank you to all of our dedicated team at MTA Queensland. Daryll Searle Chairman UCD Motor Trades Association of Queensland Industrial Organisation of Employers 33
Motor Trades Association of Queensland Industrial Organisation of Employers
Financial Report For The Year Ended 30 June 2012
Contents 36 Statement of Comprehensive Income
37 Statement of Financial Position 38 Statement of Cash Flows 39 Statement of Changes In Equity 40 Notes to and forming part of the Financial Statements 59 Declaration by Members of the Board of MTA Queensland 60 Independent Audit Report 62 Accounting Officer’s Certificate 63 Certificate by Members of the Board of MTA Queensland
Motor Trades Association of Queensland Industrial Organisation of Employers 35
Statement of Comprehensive Income For the year ended 30 June 2012
Note 2
Revenues
2012 2011 $ $
8,944,878 9,117,466
EXPENSES Employee benefits expense
3
(5,201,112)
(4,972,873)
Freight and cartage
3
(55,047)
(49,353)
Depreciation and amortisation expenses
3
(250,122)
(209,897)
Commissions paid
3
(39,002)
(67,835)
Finance costs
3
(124,427)
(3,812)
Other expenses
3
(3,293,558)
(2,820,462)
Total Expenses
8,963,268
8,124,232
PROFIT/(LOSS) BEFORE INCOME TAX 1(b)
INCOME TAX EXPENSE
PROFIT/(LOSS) FOR THE YEAR
(18,390) 993,234 - (18,389) 993,234
OTHER COMPREHENSIVE INCOME Revaluation of available for sale investment
-
(189,990)
Revaluation of Property, Plant & Equipment
-
(756,164)
(18,390) (946,154)
Total comprehensive income/(loss) for the year
(18,390)
47,080
Profit attributable to: Members of the Organisation
(18,390) 993,234
Total Comprehensive Income attributable to : Members of the Organisation
The accompanying notes form part of the financial report 36 Motor Trades Association of Queensland Industrial Organisation of Employers
(18,390) 47,080
Statement of Financial Position As at 30 June 2012
Note
2012 2011 $ $
Assets Current assets Cash and cash equivalents
4
374,163
340,273
Short term deposit
5
-
500,000
Trade and other receivables
6
1,534,093
1,804,311
Inventories
7
83,277 73,360
Other
8
115,730 905,093
Held for sale
9
4,406,500
4,800,000
Total current assets
6,513,763
8,423,037
Non-current assets Intangible asset
10
25,602
38,451
Other financial assets
11
2,655,669
2,764,520
Property, plant & equipment
12
9,998,211
7,347,584
Total non-current assets
12,679,482
10,150,555
Total assets
19,193,245 18,573,592
Liabilities Current liabilities Trade and other payables
13
Provisions
14
198,846 92,588
Other liability
15
511,155
408,627
Financial liability
16
1,950,416
73,379
3,854,745
2,663,429
Total current liabilities
1,194,328
2,088,835
Non-current liabilities Provisions
14
Financial liability
16
Total non-current liabilities
37,345 97,140 -
493,478
37,345
590,618
Total liabilities 3,892,090 3,254,047 NET ASSETS
15,301,155 15,319,545
MEMBERS’ FUNDS Reserves
17
Retained Earnings
18
TOTAL MEMBERS’ FUNDS
2,739,274 3,132,774 12,561,881
12,186,771
15,301,155
15,319,545
The accompanying notes form part of the financial report Motor Trades Association of Queensland Industrial Organisation of Employers 37
Statement of Cash Flows For the year ended 30 June 2012
Note 2012 2011 $ $ Cash Flows From Operating Activities Receipts from customers
9,501,947
9,947,513
Dividends received
171,000
249,449
Interest received
8,866
298,224
Interest paid
(124,427)
-
Payments to suppliers and employees
(9,160,181)
(9,590,478)
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES
20 (b)
397,205 904,708
Cash Flows From Investing Activities Proceeds from sale of property, plant and equipment
1,362
-
Proceeds from sale of investments
-
296,001
Payment for property, plant and equipment
(1,122,236)
(603,552)
Proceeds from redemption of investments
500,000
1,000,000
Payment for capital expenditure
(1,126,000)
(5,678,775)
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES (1,746,874) (4,986,326) Cash Flows From Financing Activities Repayment of borrowings
(45,192)
(43,517)
Proceeds from borrowings
1,428,751
499,775
NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES 1,383,559 456,258 Net Increase / (Decrease) in cash and cash equivalents
33,890
(3,625,360)
Cash and cash equivalents at the beginning of the period
340,273
3,965,633
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
374,163 340,273
20 (a)
The accompanying notes form part of the financial report 38 Motor Trades Association of Queensland Industrial Organisation of Employers
Statement of Changes In Equity For the year ended 30 June 2012
Note Asset Revaluation Retained Earnings Total Reserve $ $ $ BALANCE AT 1 JULY 2010
4,078,928 11,193,537 15,272,465
Comprehensive Income Net Profit for the year attributable to the members of the entity - 993,234 Other comprehensive income
(946,154)
-
955,234 (946,154)
Total comprehensive income for the year attributable to the members of the entity (946,154) 993,234 47,080 BALANCE AT 30 JUNE 2011 17,18 3,132,774 12,186,771 15,319,545 Comprehensive Income Net Profit for the year attributable to the members of the entity - (18,390) Other comprehensive income
-
-
(18,390) -
Total comprehensive income for the year attributable to the members of the entity - (18,390) (18,390) BALANCE AT 30 JUNE 2012
17,18 3,132,774 12,168,381 15,301,155
The accompanying notes form part of the financial report 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 2012
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 Motor Trades Association of Queensland is a not-for-profit entity for financial reporting purposes under 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, except for the cash flow information, 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. The amounts presented in the financial statements have been rounded to the nearest dollar.
Accounting Policies a. Associated Entities Motor Trades Association of Queensland owns and controls a number of associated entities.
The following are the associated entities:
MTA Queensland Ltd MTA Institute of Technology Pty Ltd MTA Queensland Management 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. 40 Motor Trades Association of Queensland Industrial Organisation of Employers
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 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
Buildings 5%
Depreciation Rate
Plant and equipment
Motor Vehicles
15 – 60% 30%
Leased Assets
20%
Fixtures and Fittings
20%
d. Property, Plant and Equipment continued 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. Motor Trades Association of Queensland Industrial Organisation of Employers 41
Notes to and forming part of the Financial Statements continued For the year ended 30 June 2012
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued 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.
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 42 Motor Trades Association of Queensland Industrial Organisation of Employers
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 short-term 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.
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. Motor Trades Association of Queensland Industrial Organisation of Employers 43
Notes to and forming part of the Financial Statements continued For the year ended 30 June 2012
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued 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 9 October 2012 by the board of directors.
NOTE 2: REVENUES
2012 2011 $ $
Revenues From Operating Activities Agricultural Show Distribution
43,000
43,000
137,509
116,881
23,501
3,989
6,602,562
6,591,564
Sale of publications
267,219
241,242
Sale of stationery
314,292
302,083
8,866
257,625
Members subscriptions & entrance fees
888,806
865,317
MTAA House dividend
171,000
206,449
Rent
279,266 242,861
Sundry income
267,831
Commissions received Industrial services income Training services
Interest from other persons
314,600
NET REVENUE FROM OPERATING ACTIVITIES 9,003,852 9,185,611 Gain/(loss) on disposal of asset TOTAL REVENUE FROM OPERATING ACTIVITIES
44 Motor Trades Association of Queensland Industrial Organisation of Employers
(58,974)
(68,145)
8,944,878 9,117,466
NOTE 3: EXPENSES
2012 2011 $ $
Expenses From Operating Activities Accounting & Audit Fees
43,789
34,264
Advertising & Promotion
25,462
41,020
Accommodation/Travel Staff
76,119
64,130
Bad & Doubtful Debts
77,666
18,324
Bank Charges
16,014
24,539
153,708
77,039
Body Corporate
10,016
-
Cleaning
46,334 34,757
Cost of goods sold – Publications
78,859
78,442
Cost of goods sold – Stationery
139,482
138,568
Cost of goods sold - Training
320,278
283,641
Building Relocation
Commissions
39,002 67,835
Computer Upgrades
60,961
49,265
Consultants fees
107,833
109,138
Depreciation & Amortisation
250,122
209,897
Director Fees
243,000
234,250
Donations Divisional Expenses Entertainment
1,903 63,584 18,173
-
650 4,447
Fees
13,878 17,007
Fringe Benefits Tax
28,063
Insurance
87,766 75,177
Interest
124,427 3,812
Legal Costs
21,209
27,879
145,472
502,351
173,321
74,176
30,006
6,024
10,145
Meetings – Catering Board
12,222
10,721
Travel Board – Airfares/Accommodation
20,008
66,156
131,505
124,748
Office Supplies
46,356
53,125
Freight & Cartage
55,047
49,353
237,107
247,017
Impairment Loss Light & Power Meetings – Catering Staff
Motor Vehicle - Fuel
Payroll Tax
Motor Trades Association of Queensland Industrial Organisation of Employers 45
Notes to and forming part of the Financial Statements continued For the year ended 30 June 2012
NOTE 3: EXPENSES continued
2012 2011 $ $
Personnel – Engagement
8,713
4,081
Personnel – Long Service
46,462
(12,020)
4,369,211
4,162,474
Personnel – Salary Sacrifice
99,090
79,102
Personnel – Superannuation
426,240
496,300
Personnel – Uniforms
7,612
5,289
Personnel – Training
28,873
21,629
Printing & Stationery
30,036
22,481
Rates & Taxes
42,858
40,045
Rental on operating leases
80,705
70,941
Personnel – Salaries & Wages
Rental Repairs & Maintenance Other Security Special Projects Sponsorships Staff Amenities Subscriptions Technical Journals Telecommunications Web Site Workers Compensation TOTAL EXPENSES FOR OPERATING ACTIVITIES
380,160 344,260 15,606
60,437
280 75 3,690
2,926
45 6,759 21,728
14,750
170,382 96,467 280
9,930
134,210 121,639 2,380
2,821
18,527
13,437
8,963,268 8,124,232
NOTE 4: CASH AND CASH EQUIVALENTS Cash on hand
700
700
Cash at Bank
373,463
339,573
374,163 340,273
NOTE 5: SHORT TERM DEPOSIT Term Deposits greater than 3 months
46 Motor Trades Association of Queensland Industrial Organisation of Employers
- 500,000
NOTE 6: TRADE AND OTHER RECEIVABLES
2012 2011 $ $
Current Accounts Receivable
391,373
397,158
Less: Provision for impairment of trade receivables
(55,764)
(28,013)
335,609 369,145
Sundry Debtors
1,182,700
694,664
GST Receivable
15,784
729,772
Unearned Interest on Investments
-
10,730
Total Receivables
1,534,093 1,804,311
2012 2011 Amount Amount Amount Amount Total Impaired not impaired Total Impaired not impaired $ $ $ $ $ $ Not past due
130,446
-
130,446
82,180
-
82,180
Past due [30] days
69,185
-
69,185
64,143
-
64,143
Past due [30-60] days
31,646
-
31,646
51,899
-
51,899
Past due [60-90] days
23,685
-
23,685
15,695
-
15,695
Past due [>90] days
136,411
55,764
80,647
183,241
28,013
155,228
TOTAL
391,373 55,764 335,609
Analysis of Impairment Account
397,158 28,013 369,145
2012 2011 $ $
Opening Balance
28,013
29,347
Provisions for doubtful receivables
77,666
18,324
Receivables written off during the year
(49,915)
(19,658)
Closing balance
55,764
28,013
NOTE 7: INVENTORIES Finished Goods – Stationery
83,777 73,360
Motor Trades Association of Queensland Industrial Organisation of Employers 47
Notes to and forming part of the Financial Statements continued For the year ended 30 June 2012
NOTE 8: OTHER ASSETS General Prepayments Construction Deposit
2012 2011 $ $ 115,730
205,093
-
700,000
115,730 905,093
NOTE 9: HELD FOR SALE Land & Buildings
4,406,500 4,800,000
The basis of carrying amount of Land and Buildings held for sale at 30 June 2012 is based on the contracted sale price less cost to sell of the West End property executed 3 September 2012.
NOTE 10: INTANGIBLE ASSETS Software
147,601
147,601
(121,999)
(109,150)
Written Down Value
25,602
38,451
Total Written down Value of Intangible Assets
25,602 38,451
Less: Accumulated Amortisation
(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
38,451
58,444
- (12,849)
(19,993)
25,602 38,451
NOTE 11: OTHER FINANCIAL ASSETS Non Current
Investments in Unlisted Entities classified as available for sale Units MTAA House Unit Trust at directors’ valuation
2,655,669
2,764,520
2,655,699 2,764,520 The basis of valuation of Units Held in MTAA House is at fair value based on the net asset position at 30 June 2012. MTA Queensland Ltd holds 19 units of a total 115 units.
48 Motor Trades Association of Queensland Industrial Organisation of Employers
NOTE 12: PROPERTY, PLANT & EQUIPMENT
2012 2011 $ $
Land & Buildings
9,981,209
1,500,000
Less: Accumulated Depreciation
(108,746)
-
Written Down Value
9,872,463 1,500,000
Fixtures & Fittings at cost
43,367
6,812
Less: Accumulated Depreciation
(6,997)
(4,686)
Written Down Value
36,370 2,126
Plant & Equipment at cost
1,405,344
394,209
Less: Accumulated Depreciation
(315,966)
(307,453)
Written Down Value
1,089,378 86,756
Motor Vehicles at cost Less: Accumulated Depreciation Written Down Value
47,885
47,885
(47,885)
(43,035)
- 4,850
Leased Assets at cost
-
161,868
Less: Accumulated Depreciation
-
(86,791)
Written Down Value
- 75,077
Capital Work in Progress
- 5,678,775
Total Property, Plant & Equipment
10,477,805
7,789,549
Less: Accumulated Depreciation
(479,594)
(441,965)
TOTAL WRITTEN DOWN VALUE OF PROPERTY, PLANT & EQUIP.
9,998,211 7,347,584
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.
Motor Trades Association of Queensland Industrial Organisation of Employers 49
Notes to and forming part of the Financial Statements continued For the year ended 30 June 2012
NOTE 12: PROPERTY, PLANT & EQUIPMENT continued Fixtures & Fittings
Plant & Equipment
Motor Vehicles
2012 Opening Balance
1,500,000 2,126 86,756 4,850 75,077 5,678,775 7,347,578 39,830 1,104,933
-
Leased Assets
Capitalised Work in Progress
Land and Buildings
Total
Additions
-
- 1,802,434 2,947,197
Disposals
- (581) (8,511) - (51,142) - (60,234)
Transfers 7,481,209 - - - - (7,481,209) Revaluations
- - - - - - -
Depreciation (108,746) (5,005) (93,800) (4,850) (23,935)
- (236,336)
Carrying amount at the end of the year 8,872,463 36,370 1,089,378 - - - 9,998,211
2011
Land and Buildings
Fixtures & Fittings
Opening Balance
5,640,901
Plant & Equipment
Motor Vehicles
32,789 167,576
Leased Assets
Capitalised Work in Progress
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 (756,165) - - - - - (756,164) Depreciation Carrying amount at the end of the year
(84,737) (12,541) (61,690) (4,882) (26,055)
- (189,905)
1,500,000 2,126 86,756 4,850 75,077 5,678,775 7,347,584
b) MTA Queensland has a bank overdraft facility amounting to $2,500,000 and a bank loan facility amounting to $5,500,000. At 30 June 2 012 the overdraft facility remained unused and $1,928,526 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 Queensland has a bank guarantee with Westpac for $181,720 on the sublease of office premises in Cannon Hill from GM Holden Ltd.
50 Motor Trades Association of Queensland Industrial Organisation of Employers
NOTE 13: TRADE AND OTHER PAYABLES
2012 2011 $ $
Current Accounts Payable
262,718
386,334
Accrued Expenses
527,843
1,346,463
Provision for Employee Benefits (Note 14a)
403,767
356,038
1,194,328 2,088,835
NOTE 14: EMPLOYEE BENEFIT PROVISION
Current Provision for Long Service Leave 198,846 92,588
Non Current Provision for Long Service Leave 37,345 97,140
NOTE 15: OTHER LIABILITIES
Current Other Payables Subscriptions and Unearned Income Received in advance
48,123
50,751
463,032
357,876
511,155 408,627
NOTE 16: FINANCIAL LIABILITIES
Current Lease Liability Bank Business Loan
21,890
45,379
1,928,526
28,000
Total Current Liability 1,950,416
73,379
Non-Current Non-current Lease Liability
-
21,703
Bank Business Loan
-
471,775
Total Non-Current Liability
- 493,478
1,950,416 566,857
Motor Trades Association of Queensland Industrial Organisation of Employers 51
Notes to and forming part of the Financial Statements continued For the year ended 30 June 2012
NOTE 17: RESERVES
2012 2011 $ $
Balance at beginning of financial year
3,132,774
4,078,928
Revaluation decrement in investments
-
(946,154)
Asset Revaluation Reserve
3,132,774 3,132,774
NOTE 18: ACCUMULATED SURPLUSES / (DEFICIT) Accumulated surpluses at the beginning of the year
12,186,771
11,193,537
(18,390)
955,234
Net profit/ (loss) attributable to the association Accumulated surpluses at the end of the year
12,168,381 12,148,771
NOTE 19: CONTINGENT ASSETS/LIABILITIES Contingent Liabilities There are no contingent liabilities at 30 June 2012 (2011: nil). Commitments Capital Expenditure – Eight Mile Plains Construction The entity has no capital expenditure commitments at 30 June 2012 (2011: $1,331,182). Operating lease commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements:
2012 2011 $ $
Within one year
160,185
346,947
After one year, but not more than five years
203,784
119,002
363,969 465,949 The computer and motor vehicle lease commitments are non-cancellable operating leases contracted for but not recognised in the financial statement with a three-year term.
52 Motor Trades Association of Queensland Industrial Organisation of Employers
NOTE 20: CASH FLOW INFORMATION
2012 2011 $ $
a) Reconciliation of Cash Cash on hand
700
700
Cash at bank
373,463
339,573
Cash on deposit
-
-
374,163
340,273
b) Reconciliation of net cash provided by operating activities to operating surplus after income tax: Operating Surplus / (Deficit)
(18,390)
993,234
250,122
209,897
Loss (Profit) on sale of assets
58,974
68,145
Impairment Loss
502,351
173,321
Decrease / (Increase) in receivables
259,488
270,954
Decrease / (Increase) in inventory
(9,917)
15,039
Decrease / (Increase) in interest receivable
10,730
40,599
Decrease / (Increase) in other assets
789,363
(1,371,599)
Increase/ (decrease) in payables
(894,507)
370,448
Increase/(decrease) in Capital costs
(700,000)
-
Increase / (decrease) in provisions
46,463
(23,294)
Increase/ (decrease) in unearned income
105,156
157,964
Increase / (decrease) in other liabilities
(2,628)
-
Non-cash flows in operating profit: Depreciation
Changes in assets and liabilities:
Net cash provided by / (used in) operating activities
397,205 904,708
c) Credit-Standby Arrangement & Loan Facilities MTA Queensland has a bank overdraft facility amounting to $2,500,000 and a bank loan facility amounting to $5,500,000. At 30 June 2012 the overdraft facility remained unused and $1,928,526 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.
Motor Trades Association of Queensland Industrial Organisation of Employers 53
Notes to and forming part of the Financial Statements continued For the year ended 30 June 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 were $243,000 (2011: $234,250). Apart from the above, there was no other Related Party Transaction during the financial year ended 30 June 2012. Names of Officers who held office during the year are:
David Fraser Ian Field Charlie Serchen Graham Winter Tim Kane Paul Peterson Len Daddow Chris Ching Paul Moni
John Ruddick Daryll Searle Glen Ford Rod Pether Steve Eaton Mark Bryers Dean Turner Mark Brady Les Anderson (Appointed October 2011)
NOTE 22: INTER-DIVISION CONTRIBUTIONS AND PAYMENTS
2012 2011 $ $
a) Amounts contributed / allocated by MTA Queensland Corporate to other MTA Queensland divisions representing $20 membership renewal.
- 46,820
b) Success fees at the rate of 36% paid to Corporate division of MTA Queensland for monies raised by divisions’ activities.
- 15,480
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 Queensland) 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 maximum exposure to credit risk at balance date is as follows: Receivables 54 Motor Trades Association of Queensland Industrial Organisation of Employers
2012 2011 $ $ 391,373
397,158
NOTE 23: FINANCIAL RISK MANAGEMENT continued b. 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 Queensland, 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 $1,928,526 has been drawn down at 30 June 2012. (2011: $499,775)
c. Maturity Analysis - 2012
Carrying Contractual Amount Cash flows < 6 mths 6- 12 mths 1-3 years $ $ $ $ $
Financial Liabilities Trade and other payables Lease liability
1,194,328
1,194,328
1,194,328
-
-
21,890
21,890
21,890
-
-
Bank Loan
1,928,526 1,928,526 - 1,928,526 -
TOTAL
3,144,744 3,144,744 1,216,218 1,928,526
Maturity Analysis - 2011
-
Carrying Contractual Amount Cash flows < 6 mths 6- 12 mths 1-3 years $ $ $ $ $
Financial Liabilities Trade and other payables Lease liability Bank Loan TOTAL
2,088,836
2,088,836
2,088,836
-
-
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
Motor Trades Association of Queensland Industrial Organisation of Employers 55
Notes to and forming part of the Financial Statements continued For the year ended 30 June 2012
NOTE 23: FINANCIAL RISK MANAGEMENT continued 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: Foating Interest Rate 2012 2011 $ $
Non-Interest Bearing 2012 2011 $ $
Total 2012 $
2011 $
Financial Assets Cash
373,463
Receivables Total Financial Assets
839,573 -
-
-
1,534,093 1,804,311
373,463
839,573
1,534,093 1,804,311
373,463 839,573 1,534,093 1,804,311 1,907,556 2,643,884
Financial Liabilities Trade & other payables
-
-
1,194,288
2,088,836
1,194,288
2,088,836
21,890
67,082
-
-
21,890
67,082
Bank Loan
1,928,526
499,775
-
-
1,928,526
499,775
Total Financial Liabilities
1,950,416 566,857 1,194,288 2,088,836 3,144,704 2,655,693
Lease liability
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.
NOTE 24: KEY MANAGEMENT PERSONNEL COMPENSATION
Short-term Post employment benefits benefits $ $
2012 Total compensation 813,056 144,463
2011 Total compensation 706,954 99,013
56 Motor Trades Association of Queensland Industrial Organisation of Employers
NOTE 25: AUDITORS REMUNERATION
2012 2011 $ $
Audit Audit of the financial report
36,500 35,500
Non-audit services Other services
3,500 4,500
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 Note 2012 2011 $ $ Finance Lease Commitments Payable — minimum lease payments — not later than 12 months
21,890
47,328
— between 12 months and five years
-
21,890
Minimum lease payments
21,890
69,219
Less future finance charges
-
(2,137)
Present value of minimum lease payments
16 21,890 67,082
The finance lease on office equipment comprises a 5 year lease which commenced in October 2007 for $222,054.81. The 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.
Motor Trades Association of Queensland Industrial Organisation of Employers 57
Notes to and forming part of the Financial Statements continued For the year ended 30 June 2012
NOTE 28: EVENTS AFTER BALANCE SHEET DATE Other than the following, the directors are not aware of any significant event since the end of the reporting period. MTA Queensland entered into a contract to sell the property at West End on 3 September 2012 for $4,500,000. The contract has a settlement period of 120 days from the contract date.
NOTE 29: REGISTERED OFFICE Building 8 2728 Logan Road Eight Mile Plains QLD 4113
58 Motor Trades Association of Queensland Industrial Organisation of Employers
Declaration by Members of the Board of MTA Queensland
In the opinion of the board of MTA Queensland the financial report as set out on pages 1 to 22. 1. Present fairly the financial position of the Motor Trades Association of Queensland Industrial Organisation of Employers as at 30 June 2012 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 Queensland and is signed for and on behalf of the Committee by:
President David Fraser
Treasurer Paul Peterson Dated this 9th day of October 2012
Motor Trades Association of Queensland Industrial Organisation of Employers 59
Independent Auditor’s Report
To the members of Motor Trades Association Queensland Industrial Organisation of Employers (MTA Queensland)
Report on the Financial Report We have audited the accompanying financial report of MTA Queensland, which comprises the statement of financial position as at 30 June 2012, 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 Relations Act 1999, 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.
Independence In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies.
60 Motor Trades Association of Queensland Industrial Organisation of Employers
Opinion In our opinion the financial report presents fairly, in all material respects, the financial position of MTA Queensland as of 30 June 2012 and of its financial performance and cash flows for the year then ended in accordance with Australian Accounting Standards (including the Accounting Interpretations). In our opinion: (a) the organisation has kept satisfactory accounting records for the financial year ended 30 June 2012, including records of: (i) the sources and nature of the organisations’ income including membership subscriptions and other income from members; and
(ii) the nature of and reasons for the organisations’ expenditure;
(b) the financial report for the year ended 30 June, 2012 is properly drawn up to present fairly in all material respect, the organisations’:
(i) financial affairs as at the end of the year; and
(ii) the income and expenditure and surplus or deficit for the year
(c) the financial report has been prepared in accordance with the Industrial Relations Act 1999, Australian Accounting Standards and other mandatory professional reporting requirements. Where necessary, we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit. BDO Audit Pty Ltd
D P WRIGHT Director Brisbane, 9 October 2012
Motor Trades Association of Queensland Industrial Organisation of Employers 61
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 2012 the number of financial members of the Association was 1,426, and the number of non-financial members was nil. In my opinion: (i)
the attached financial report shows a true and fair view of the financial affairs of the Association as at 30 June 2012;
(ii) 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; (iii) expenditure incurred by the Association was approved under the Associationâ&#x20AC;&#x2122;s Rules before it was incurred. (iv) 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; (v) 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; (vi) the register of members of the Association was maintained in accordance with the Act.
Kathy Winkcup Chief Financial Officer Dated this 8th day of October 2012
62 Motor Trades Association of Queensland Industrial Organisation of Employers
Certificate by Members of the Board of MTA Queensland
In the opinion of the board of management the financial report: 1. Present fairly the financial position of the Motor Trades Association of Queensland Industrial Organisation of Employers as at 30 June 2012 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 1999. 2. 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. 3. Meetings of the Board of MTA Queensland were held during the year ended 30 June 2012, in accordance with the rules of the association. 4. 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. 5. The Audit report and accounts for the Associations financial year ended 30 June 2012 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 Queensland and is signed for and on behalf of the Committee by:
President David Fraser
Treasurer Paul Peterson Dated this 9th day of October 2012
Motor Trades Association of Queensland Industrial Organisation of Employers 63
Board Members 2011 - 2012
David Fraser President, MTA Queensland Chairman, Queensland Farm and Industrial Machinery Dealer Division (QFMIDD) Steve Eaton Vice President, MTA Queensland Representative, Far North Queensland region Mark Bryers Vice President, MTA Queensland Chairman, Engine Reconditioners Association Qld (ERAQ) Paul Peterson Secretary/Treasurer, MTA Queensland 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
64 Motor Trades Association of Queensland Industrial Organisation of Employers
Motor Trades Association of Queensland Industrial Organisation of Employers 65
20120030
Address Freeway Office Park, Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 Postal PO Box 4530 Eight Mile Plains Qld 4113 Tel (07) 3237 8777 Fax (07) 3844 4488 Toll Free 1800 177 951 www.mtaq.com.au