Motor Trader May 2014

MAY 2014

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MEMBERS CLASSIC: 1969 CHEVROLET C10 PICK-UP

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Contents Official Publication of the Motor Trades Association of Queensland

Follow us on Facebook www.facebook.com/MTAQueensland

HEAD OFFICE Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 P.O. Box 4530, Eight Mile Plains, Qld 4113 Tel: 07 3237 8777 Fax: 07 3844 4488 Toll Free: 1800 177 951 Email: publications@mtaq.com.au Website: www.mtaq.com.au EDITOR Jonathan Nash ART DIRECTOR Marco Ilinic INDUSTRIAL RELATIONS Ted Kowalski Michelle Chadburn POLICY Kellie Dewar, General Manager MTA Queensland ADVERTISING ENQUIRIES Emily Metelmann 07 3237 8784 Facsimile: 07 3844 4488 Email: emilys@mtaq.com.au

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EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777 SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually MOTOR TRADER PUBLISHING POLICY Motor Trader is the official publication of the Motor Trades Association of Queensland. The role of Motor Trader is to inform members of current issues and legislation affecting the industry. As such it can be regarded as the business magazine for the Queensland motor industry. The role of Motor Trader is not to be in competition with the technical magazines already on the market. It will advise of new vehicles being released and of the latest technology incorporated into them; it will advise of latest technology affecting members in each of the MTA Queensland Divisions; it will keep members abreast of the latest in motor industry training and industrial affairs; and it will keep members informed of the latest technical aids available through MTA Queensland Member Services, which will assist members in staying ahead of the technological revolution presently being encountered within the motor industry.

The publisher reserves the right to omit or alter any advertisement and the advertiser agrees to indemnify the publisher for all damages or liabilities arising from the published material.

13 02 From the editor 04 Policy/Viewpoint 06 Divisional news 08 MTA Q&A DAVID MOHR: CHIP TYRE Features 10 THE TWO-WHEELED REAL DEAL:

MTA QUEENSLAND ABN: 74 028 933 848 CORPORATE PARTNERS

MEMBERS ESSENTIALS 18 Training matters 22 Members matters 26 Member profiles 28 Industrial relations

CHARLEY BOORMAN 30 THE ROTARY CLUB: A MAZDA COLLECTION

29 Investment matters

13 News NORTH QLD SURVIVES TUSSLE

14

20140156

14

WITH CYCLONE ITA H.HARVEY PRESTIGE GETS THE GREEN STAMP OF APPROVAL

16 Members Classic KEEP ON TRUCKING:

MARKET WRAP

32 Motorsport SUCCESSFUL DEBUT FOR WEBBER IN WEC

33 Industry insight

READY TO STICK YOUR HEAD INTO THE CLOUDS?

1969 CHEVROLET C10 PICK-UP May 2014 Motor Trader | 1

From the editor

JONATHAN NASH EDITOR

H

ELLO AND WELCOME to the May edition of Motor Trader magazine.

In our feature this month, MT talks to Charley Boorman, renowned motorcycle enthusiast, one-time movie star, writer, modern-day adventurer and best mate of film heavyweight Ewan McGregor.

A regular visitor to Australia, Boorman has carved a career for himself as a world explorer, mounting his trusty motorcycle to ride the roads less travelled - with camera crew often in tow.

His worldwide treks, sometimes in partnership with McGregor, include Long Way Round – a trip from London to New York via Europe and Asia, and Long Way Down, which saw the pair ride from Scotland to Cape Town.

Boorman continues to tour the world, recently trekking the Outback and Tasmania while also squeezing in a drive at the Mazda3 Australian Grand Prix Celebrity Challenge.

In our Members Classic section this month, we talk to Dave Delaforce from Park Ridge Wreckers. Dave is an avid fan of classic American cars. He’s owned a few over the years but we take a closer look at his Chevy C10 Pick-Up, a vehicle that, unusually for a members classic, is used as a practical daily working vehicle.

Check it out on Page 16.

Talking of Members Classic, last month, you may remember, our feature focused on Danny Irvine’s Mazda L10A Cosmo Sport.

The Cosmo is just one of an ever-expanding collection of classic Mazda models that Danny owns and we couldn't pass up the opportunity to return and photograph more of the magnificent collection. Check them out on Pages 30-31.

When Cyclone Ita steamed towards far north Queensland at the beginning of April, there was a lot of chatter about just how bad things might be when the Category 5 storm hit. Thankfully, Ita lost power as it moved inland but it was still tremendously powerful when it passed over Cooktown.

MT caught up with MTAQ member Gregg Mayo, owner of Caltex Cooktown, to see how the business, and the town, coped with the ferocious storm.

In training matters, we revisit the push to encourage women into our industry. With the shortage of skilled staff, supporting women into joining the industry is a no-brainer, and MT talks to Auto Skills Australia’s project manager Peter Gostelow about the initiative they have undertaken.

MT also chats to three trainees who

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are working towards a career in the industry through MIT. Taking care of the environment gets a mention this month on page 14 as we meet up with Mark Wells of H.Harvey Prestige on the Gold Coast.

The business recently went through the Green Stamp auditing process, achieving Level 3 accreditation.

With initiatives such as the installation of a solar power system that provides 95 per cent of the business’s needs, Mark has gone beyond the requirements in the push to move the business forward and be environmentally friendly.

As always, we will endeavor to bring you news and insight into the automotive industry, the most up-to-date information regarding training opportunities and, of course, continue to highlight members’ interest with MTAQ&A and Members Classics features.

I hope you enjoy this edition of Motor Trader and, as always, if you have a story you think is worth telling, want to appear in Member Profiles or have a classic car, bike or truck you would like to see featured, then please don’t hesitate to contact me.

Cheers,

Jonathan Nash jonathann@mtaq.com.au

Honda Genuine Plus

CONGRATULATIONS TO OUR WINNERS The Honda Genuine Plus promotion has been drawn.

Congratulations to

SOWERBY’S CRASH REPAIRS on winning the major prize, an exciting new Honda Civic Hatch.

In total there were 125 prizes drawn in this year’s Honda Genuine Plus prize draw, so well done to all who entered.

Please stay tuned for the next Honda Genuine Plus promotion.

To check out the winners or get a chance to be a winner next time please visit www.honda.com.au/hgp

Policy/Viewpoint

I

KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND

4 | Motor Trader May 2014

TRUST YOU HAD a happy and safe Easter and enjoyed the glorious weather. I had a break to spend some special time with my family and to catch up on things that there never seems time to do.

At the outset, I must mention the Motor Dealers and Chattel Auctioneers Bill (the Bill). In the April Viewpoint, I said I was meeting with the Office of Fair Trading (OFT) and anticipated that there would be consultation on the Bill.

To my surprise, it was not high on their policy agenda for discussion. I left with the general thought it would go through the Parliament in the May sittings.

Following that meeting, I had an unexpected telephone call from the Attorney-General and Minister for Justice the Hon Jarrod Bleijie. It was prompted by a deputation from industry representatives who discussed our longstanding policy issue of the requirement for premises of licensed motor dealers to have a councilapproved identifiable address. This had been omitted from the Bill before the Parliament despite our many references to it in several submissions.

In the conversation with the Attorney-General, I stressed that council-approved premises for motor dealer licenses was an important policy issue for Members of the Used Car Division. I explained that we had opposed the previous Government’s removal of the requirement to operate from licensed business premises, the consequence of which - as we predicted - was a marked increase in the number of unscrupulous unlicensed dealers misrepresenting themselves as private sellers.

The Attorney-General indicated that it was complex policy as it required negotiations with local government, including the Brisbane City Council, and the Bill may have to proceed without it. He assured me that when introducing the Bill he would comment that council-approved premises for motor dealer licenses was an outstanding policy issue to be finalised between MTA Queensland and the OFT. Subsequent to the telephone call, the Chair of the Used Car Division Mike Kennedy and I wrote to the

Attorney-General. We indicated that in submissions to Government over several years we had raised consistently the importance of councilapproved premises for motor dealer licenses to provide consumers with some protection from unscrupulous fly-by-night backyard operators.

The Attorney-General said that both industry sectors (property agents and motor dealers) want their respective Bills to progress. I expect the Bill will be legislated in the May Parliamentary sittings. I will keep you informed and you can be assured it will be a subject in my June Viewpoint.

DOB IN A BACKYARDER

Thinking about “unscrupulous unlicensed dealers” and the need for council-approved premises for motor dealer licenses; I am prompted to remind Members of our Dob in a backyarder webpage. I encourage Members to tell their friends and associates about this tool and to use it if a backyarder is suspected of operating in your area.

I can assure Members the information will be acted on promptly and sent to the OFT for investigation.

THE ECONOMY

Between all the talk about the contents in the forthcoming Federal Budget and the fiscal repair of the Queensland State Budget, there has been some good economic news to cheer about.

The recent Australian Bureau of Statistics (ABS) Consumer Price Index indicated that inflation was not the bogey anticipated. The consumer price index rose 0. 6 per cent in the March quarter, for an annual rate of 2. 9 per cent - lower than predicted.

The Reserve Bank of Australia (RBA) has a target range for annual

inflation of two to three percent.

According to economists, the lower than expected inflation will allow the RBA to keep the cash rate at a record low 2. 5 per cent. The RBA Board’s next meeting is on Tuesday 6th May. A Commonwealth Bank survey of small to medium sized businesses (SMEs), “and the bank’s experience with clients, show that businesses are more confident than they were six months ago.” The findings indicated that SMES were “optimistic that the Australian economy will continue to gather momentum with almost 90 per cent of businesses expecting conditions to either improve or remain steady over the next six months.”

The National Australia Bank’s (NAB) business confidence index in the final months of 2013 was at a two-and-a-half year high and remains near that level in early 2014. Improved confidence was spreading to more sectors of the economy - not just mining and resources. The analysis of NAB index was that “confidence has been generally trending higher across the board and is still positive for most industries.”

The Federal Budget will be released on Tuesday 13 May and it is expected to be tough. We will be monitoring it closely for its impacts on the automotive value chain. Treasurer Joe Hockey said that all sectors “will feel some pain” as the Government endeavours to rein in spending.

POLICY

We have a busy policy schedule to fulfill over the coming weeks.

As I prepare this Viewpoint, the submission to the Federal Treasury on the Exposure Draft of Franchising Regulation 2014 is waiting to be finished before the 30 April deadline.

Comments are to be confined to technical aspects of implementing the law as extensive consultation has already occurred.

“THE FEDERAL BUDGET

WILL BE RELEASED ON TUESDAY 13 MAY AND IT IS EXPECTED TO BE TOUGH. WE WILL BE MONITORING IT CLOSELY FOR ITS IMPACTS ON THE AUTOMOTIVE VALUE CHAIN.” The MTA Queensland has been on the Franchise Code consultative journey since 2007 and, more than likely, this is the end of that long journey. We see our several submissions as a contribution to the evolution of a mandatory policy framework to allow the orderly development of franchising marketing in Australia. We can take pride that the views we have submitted have been incorporated into policy.

In our submission we draw attention to the issues that are not in the best interest of our Members and proposed alternatives to the draft clauses. The MTA Queensland has concerns with three elements of the draft regulations.

These refer the Obligation to act in good faith; End of term arrangements; and capital expenditure. I refer Members to the submission on our website.

The legislation will come into effect on January 1, 2015 and has the potential to affect franchise agreements.

In addition there is the introduction of substantial fines for conduct breaches and increased auditing access for the Australian Competition and Consumer Commission. Importantly, there will be a more transparent and understandable information for prospective franchisees.

Pending too is a submission to the Competition Policy Review Issues Paper. This Review is more than timely, as it is over 20 years since the last wide-ranging review of competition policy. The review, according to Chair of the Independent Panel Professor Ian Harper is “not just about competition law, but about the broader Australian economy - it’s about improving our standard of living by driving competition across the entire economy.”

If Members would like to know more or would like to have input into our submission, the Issues

Paper can accessed at http:// competitionpolicyreview.gov.au Submissions are open until 10 June 2014. Please send your thoughts or ideas to me before then.

There is a Statutory Review of the Personal Properties Securities Act 2009 (PPS Act). The operation and effect of the PPA Act will be reviewed and, in addition, the review will pay particular attention to the experiences of small businesses with the Act. Comments are being sought from small business on the effect of the PPS Act on their operations and ways in which small business understands and engages with the PPS Act, and the opportunities to reduce the cost of working with and utilising the regime.

More details may be obtained from www.ag.gov.au/ppsareview. If you would like input into our submission, please send them to me before the closing date of 6 June 2014.

Referring to the Sharing of Repair Information in the Automotive Industry, MTA Queensland was represented at a recent meeting in Canberra to resolve contentious issues around the Draft Code of Practice. All parties have agreed to consider a draft agreement, ensuring that access to repair information does not become a problem in the future.

The document, to be signed by all parties will state that Original Equipment Manufacturers will make repair information available at a reasonable cost through internet-based delivery protocols. Parties are working towards an agreed ‘Code of Practice’ to be finalised by no later than 30 August 2014.

The State Budget is due to be introduced in the first week of June.

Later this week, I will sign off on our submission to the Queensland Treasury.

It includes the sentiment that it is important for the State Government to appreciate that any increases in costs through fees and charges, either directly or indirectly, to the automotive industry are transmitted along the value chain as inflation to consumers and will impact on economic growth and real incomes. It would be unfortunate if some of the outstanding achievements to improve economic efficiency and productivity through the elimination of red and green tape were dissipated through inflation generated by increased fees and charges.

May 2014 Motor Trader | 5

Policy/Viewpoint

MOTOR VEHICLE AND MOTOR CYCLE SALES Sales of new motor vehicles in Queensland for March were slow.

The Australian Bureau of Statistics (ABS) data indicates that compared with the previous month there was a decline of 1.4%. Nationally there was a small fall of -0.3 percent.

VFACTS, the Federal Chamber of Automotive Industries analysis of new motor vehicle sales, indicates that for the month of March new motor vehicle sales were down by 1,024 or -5.7 per cent compared to just -0.1 per cent

nationally. On a year to date basis, new motor vehicle sales were down 2,535 units or -4.5% and -2.4% nationally.

Interestingly, VFACTS analysis indicates that in March 2014, large cars were a popular choice with purchases of large passenger cars up 24.5 per cent, and large SUVs up 9.7 per cent compared to March 2013. The trend had been for smaller sized cars, micro passenger cars and light passenger cars to dominate.

Governments appeared to be back in the market with purchases up by 9.6 per cent in March 2014, compared to March 2013. In particular, government buyers bought 22.4 per cent more passenger cars and 1.7 per cent more SUVs. Business purchases of motor vehicles declined by 4.7 per cent.

For the first quarter of 2014 Motorcycle sales were down 2.5 per cent. It was sales in the off-road motorcycle and scooter segments that took a downward tumble—9.4 and

Divisional news Ben Chesterfield ERAQ At time of going to print we are still waiting for confirmation of the venue at which the upcoming conference will be held. However, please keep an eye out for the correspondence that will be coming your way with all the details for this event.

The national ERAA meeting is being held in Melbourne this month (May) and we will keep you all informed as to the outcomes of issues raised on a national agenda.

The next meeting for your division will be held at MTAQ on May 21 and we would love to see some new faces in attendance. Maybe a fresh outlook on ideas or issues can be identified and looked at by the committee, so please take the hour or so out of your evening and come along.

6 | Motor Trader May 2014

AED As mentioned in my last news, we have formed a subcommittee to look at a choice of repairer and, as you are reading this, we have finalised a first draft and will be meeting soon to discuss and hopefully approve.

We will keep everyone advised as to the progress of this initiative.

We distributed the Queensland Transport check rego link a few weeks ago, and all those that have seen it agree that it is a great idea.

For anybody that may have missed it, please give me a call and we will resend.

The workshop code of practice has been finalised, and with our input has had changes made which we see as a benefit to our members.

More on this in the newsletter which I am currently working on and which will be distributed soon.

16.3 per cent, respectively—compared to sales in the same period of 2013.

Road motorcycle sales, however, were strong, with 3.3 per cent more road bikes sold between January and March 2014, than in the same period in 2013.

MEETINGS Before my next Viewpoint, I will have been in Rockhampton on 6 and 7 May for meetings with Members.

The general meeting will be held on May 6 at the Quest Rockhampton.

I will have time before I leave to go to Cairns on May 29-30, with the general meeting on May 29, to tell you about the visit to Rockhampton.

To our Members in Cairns please schedule the general meeting in your diaries.

I look forward to speaking with as many Members as possible to hear your issues and how your Association can serve you better.

In the meantime take care.

with Ben Chesterfield and Ian Cole However I would like some feedback and content if anyone has anything to share.

The next committee meeting will be held later this month and we will advise you all of any outcomes from the meeting.

NACA It has been a testing time for our industry, but we have continued to grow our membership. Since Christmas we have signed five new panel shops and there are currently six more pending approval. This is great to see. Welcome aboard and I look forward to your input and feedback for our division.

Whilst on membership, the Committee is up for nominations in May, so if any of you have the desire to be part of the Committee please fill out the nomination form and send it in.

Divisional news The committee has agreed on some new choice of campaign flyers which are currently being arranged for Members. These will be distributed in the next few weeks.

We have recently been to Rockhampton and Bundaberg to present our Code of Conduct and eMTA presentations. I thank all those who took the time out to come along.

Shops have been spoken with regarding their IAG RFPs, and announcements of who was successful have now been advised. RACQI RFP has been released and closes 5pm SHARP, Wednesday May 21, 2014 and remains on track to complete the selected repairer review by the end of July.

We are on a roll with Green Stamp enquiry which is great to see. Please make contact to have this carried out at your shop.

The next committee meeting is being held later this month so you will all be kept informed on any outcomes or decisions.

So until next time, keep living the dream, and remember to make contact with any issues, concerns or compliments. And remember, this is our industry and our time.

Ian Cole RVID I attended a strategy meeting with RVID chairman Chris Ching and representatives of rental vehicle companies at Hendra Police Station.

The agenda of this meeting was to develop strategies to decrease the number of rental cars being stolen from Brisbane Airport and to also discuss business practices to identify and deal with potential high risk rentals / customers in order to limit their impact on rental car companies.

This is to be an ongoing forum with the Qld police and the rental car industry.

A follow up meeting has been

scheduled with time and date to be advised.

If any members have feedback on these issues please contact me.

ARD

As you are aware, we have launched the “Dob in a Backyarder” portal on the MTAQ website.

This is an initiative which enables anyone to report unlicensed backyard dealers details to MTAQ and then to be referred to the Office of Fair Trading (OFT).

This initiative grew out of members concerns and also MTAQ representations to the OFT. Unfortunately, at this time, the response has been minimal and I encourage you to use the webpage located on the MTAQ website and the information will be forwarded to the OFT. This is vitally important for your industry and I look forward to an increase in activity.

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May 2014 Motor Trader | 7

QA

MTA &

MT: When did Chip Tyre start and what products and services do you provide?

DM: We started in 1998 although I spent 8 or 9 months prior to that doing research on what sort of materials people wanted and where the market was going to be. We produce rubber granules from shredded tyres of various sizes from +10mm-30mm (bigger than 10mm but smaller than 30mm) to -1.5mm+0.5mm. Various products are made from our rubber including surfacing for playgrounds, sports fields and in the equine industry for surfaces such as horse walkers for racehorse stables. It is also used in glue products, for building applications and even on rifle ranges as a bullet stop. We’re also working on a product called Mohrpower – an explosive for the mining industry that uses recycled rubber instead of diesel in the mixture.

We also grind the rubber down to 0.7mm for use in tile adhesive glues and spray seal bitumen. We make about 250 tonne of that a month and another 250 tonnes of the other sizes. We get through about 100-120,000 tyres every month and we have four 20-tonne loaders, a 12 and an 8 running around here all the time.

MT: Where do the tyres come from?

DM: The tyres come from retailers all over Queensland and northern NSW. We have had loads come up from Newcastle, but it’s not common to go that far.

MT: What’s your background?

DM: I was farming for about 20 years – 13 years in Chinchilla farming grain

The question of what to do with used, end-of-life tyres has been a constant thorn in the industry’s side. Motor Trader talks to David Mohr of Chip Tyre, a company that is doing something about the problem from its site at an old coal mine west of Brisbane. and cattle and five years before that running 2500 sheep in Victoria. Before that I spent 10 years in earthmoving.

MT: It’s an unusual leap from farming to tyre recycling. How did that come about?

DM: I happened to be fencing one day - hammering in wooden posts with a driver - and I wondered that if it were possible to make posts out of rubber it would be a win-win – we wouldn’t have to cut down trees and it would be somewhere for old tyres to go. So I started to make some enquiries and found out about rubber being produced for use in playgrounds. At the time buffings – the discarded rubber off a recapped (retread) tyre – were widely used but the buffings would often curl up and it would take time to level the surface. I spent time with Master Fibre, which was one of the leading playground installation companies at the time, and they really wanted a granular mix because it finishes nice and smooth.

MT: How did you come by the site for Chip Tyre?

DM: I was living at Chincilla and travelling down through the week.

I worked out what requirements and licencing was required and sought a site that was suitable – a site that was close enough to the city but not too exposed. I was driving around the general area and I was actually interested in another site nearby. While I was there, I met some coal mine guys and they said I should have a look at this site – the Rhonda Number One

“CONVERTING OUR

WASTE INTO REUSABLE ENERGY IS VERY HIGH PRIORITY. ULTIMATELY OUR AIM IS THAT FOR EVERY TYRE THAT COMES IN, EVERYTHING IN IT IS USED IN SOMEWAY ON SITE OR SOLD AS A PRODUCT.” Mine Site. While I was driving over to have a look at the site, the song ‘Help Me, Rhonda’ was playing on the radio. It was fate. So I found out who was working the mine last, had a talk to them and they were more than happy to come across and highlight all the benefits. They pointed out that the site was virtually hooked up to the Swanbank power station - that there was enough power coming in that it had run the Rhonda Underground mine and the neighbouring mine and that the power could go out in the area but we’d still be going. They were very helpful.

We marked out about six hectares that we wanted to utilise which included the dam for cooling and fire purposes.

MT: As customer awareness grows and initiatives such as the Tyre Stewardship Scheme become a reality, it would seem that tyre recycling is a growth industry?

DM: Yes. And since groups like the Boomerang Alliance are pursuing the illegal baling and export of tyres there

are more tyre stores coming over and doing the right thing. In the long-term that will be a good thing. But what we need is more and more outlets. There is a limit to playgrounds, and though spray seal bitumen can go on all summer long it can't be used in winter due to the temperature of the roads.

MT: How much of the tyre is recycled?

DM: About 54 per cent of a tyre is recoverable for rubber. The nylon in the tyre currently goes to landfill but we have plans to put in a pyrolysis plant, turn all of our waste into diesel and then use the diesel to power a genset (a generator) to run the plant. We will try and be self-sufficient. We’ll cut a lot of our waste bill and clean up our steel to a point where it is of higher value. Some of the steel we get through the secondary shredder is saleable and goes for about $80 a tonne, but it’s better than paying $80 a tonne to dump it. Converting our waste into reusable energy is a very high priority.

Ultimately our aim is that for every tyre that comes in, everything in it is used in someway on site or sold as a product.

MT: How do you spend your spare time?

DM: We’ve been running seven days a week for weeks but I do breed and train cutting horses. Actually, the ‘CHIP’ in Chip Tyre stands for Cutting Horse Income Provider. During my time when I was driving back and forth to Chinchilla I was thinking about a name for the company. The machine we use makes these little rubber 'chips' and I thought 'Cutting Horse Income Provider' – that would do me just fine.

May 2014 Motor Trader | 9

10 | Motor Trader May 2014

Charley Boorman has travelled all over the world, but whether dusty road, muddy track or shimmering tarmac, there’s one place the bike fanatic keeps coming back to - Australia.

T

HE FORMER CHILD actor (and son of famous film producer John Boorman) turned travel writer, presenter and explorer, is now famous for his round-the-world explorations on two wheels, many of which have been the basis of popular fly-on-the-wall TV programmes, some featuring his good friend Ewan McGregor. The constant in all this is a raft of experiences and very special personal journeys for Boorman, the 47-yearold who juxtaposes a rough and rugged exterior with a passion for people that actually goes way beyond their love of two-wheeled transport.

But whereas Boorman has been everywhere from Africa to Japan to America, his love of Australia goes beyond his work or his curiosity: to go back to the start, it is where love first blossomed with his wife, Olivia.

“It did indeed,” he says with a cheer. “I had met Olivia just before she was going down under for a six-month trip, and being young, free and single I decided to follow her over there and join her. It was the sort of impulsive thing I would do back then!

“I was into my bikes as a youngster but hadn’t really appreciated what Australia would offer in terms of travelling around. Instead, I spent most of my time going from job to job, doing anything to get the money to be able to last the holiday. I ended up living in Sydney and far North Queensland and fell in love with the country as well as my wife to be. That was 26 years ago!”

And in the quarter of a century or so that has followed, Boorman has been a repeated visitor to the southern hemisphere, often for work. His 2009 series By Any Means saw him travel to Sydney from Ireland using air travel only when totally necessary – the trek bringing new experiences and challenges even to someone of Boorman’s mettle.

“Every time there is something different, something original. I love the contrast between the coast and the Bush, I love Sydney, Ayers Rock, Melbourne, going right up to the

“TRUE TO HIS WORD, THIS YEAR

BOORMAN WAS IN AUSTRALIA AGAIN ON ANOTHER EXPEDITION, THIS TIME IN ASSOCIATION WITH AUSTRALIAN RIDING COMPANY COMPASS EXPEDITIONS.” Great Barrier Reef. It’s an awesome adventure, and the people are just fantastic.

“Of course as much as the Aussies and the English like to rival each other, the truth is we have a lot in common, and cricket, rugby and a few other things aside, there are no two better stable mates in the pub at the end of the night than an Aussie and an Englishman. They’ll back one another to the death. Of course, it helps that there’s such a great sense of humour exchange too, and a knowledge of motor vehicles certainly helps things along also!

“I guess the real difference though is the roads. In Australia you can feel like the only person out there – the highway to yourself. In Britain you might get that in the Highlands of Scotland, but nowhere else, and certainly not in England.”

True to his word, this year Boorman was in Australia again on another expedition, this time in association with Australian riding company Compass Expeditions. It was the third such trip in Australia in which everyday biking fanatics can join Boorman on his travels.

“After our African adventures on the bike tours we thought that Australia was the obvious place to go next, except this time we concentrated on Sydney to the Outback, then Tasmania to the High Country. We’ve also got another huge Africa ride planned later in the year – it’s going to be amazing.”

May 2014 Motor Trader | 11

Boorman was born Wimbledon, England, in August 1966, and it wasn’t long before motorbikes became the only thing he was interested in. His formative years were spent in Dublin, and he was afforded the opportunity to star in films due to his father’s occupation (Boorman had a role in John’s crowning glory Deliverance in 1972).

“I suppose looking back it was a very unusual upbringing, but at the time it just seemed normal. My father went to America to make films; sometimes we would go out there for weeks and weeks at a time - that was just how it was.”

Yet Boorman was only bothered if it had two wheels, and managing to escape the shadow of his famous dad “it wasn’t hard, if I was a film director he'd be a hard act to follow, and anyway, both my parents were always 100 per cent behind whatever I was doing,” - the path was clear to pursue his dream.

“Ever since I can remember I have ridden motorcycles and I could never imagine a time where I didn’t ride them. I think about them all the time, and my most prized possession is my collection of motorbikes. I’ve got about a dozen at home (in Barnes, south-east London), most of them BMW and KTM models, that are used for different things: some for racing on the track, others for off-road riding. Some of them are classic bikes and I’ve got a couple that are just collectors’ items.

I wish I had more. I just love getting out on them and riding.

“Do I have a favourite? No, that is too hard to say!

It depends on my mood, where I am riding. You can’t explain why you just want to do it; whatever it is that you are passionate about.”

“LOOK, EWAN IS A MATE AND WE

HAD THE BEST TIME MAKING THOSE PROGRAMMES AND RIDING AROUND, IT WAS GREAT FUN. BUT OBVIOUSLY HE IS VERY BUSY SO IT’S NOT SOMETHING THAT WE ARE PLANNING TO DO ANY TIME SOON.”

Actors Adrien Brody and Rick Yune with Boorm anand German offroad racerJutta Kleinschmidt at the launch of BMW' s 'Ride of your life' tour

Ewan McGregor shares that passion and the actor has embarked on epic journeys with Boorman over the years. Best friends after meeting in 1997, it is often said that Boorman owes his high profile to McGregor, which inevitably means he is asked about him at every chance.

Does he mind having a more famous riding buddy?

“No I don’t, although you are right, everybody normally asks me! Look, Ewan is a mate and we had the best time making those programmes and riding around, it was great fun. But obviously he is very busy so it’s not something that we are planning to do any time soon. Could it happen in the future? Yeah, why not? You never know. But these trips can take a while to plan and even longer to do, so there is nothing at the minute.”

Despite the occasional hazards that crop up when motorbiking across various terrains, Boorman refuses to take his foot off the proverbial pedal, even with a half century of years approaching. “Of course there are risks, but that is the nature of riding. For example, when in Oz recording By Any Means I had a bad fall and it was miracle I didn’t end up in a Queensland hospital, but you know, there are risks in everything in life. You’ve got to balance the risk with reward, and I’ve not found anything yet that is more rewarding than getting out on a bike!”

And the word ‘achievement’ is a key one for Boorman; riding is more than merely the physical act and he says that everybody should follow his lead - even if it means riding from Sydney to the UK. “Just do it! Get on your bike and do it. Lots of people do it, and on your way you will meet the most amazing people on the same amazing journey.

“I would recommend it to anybody. It’s not just the thrill of riding - you can make dreams you didn’t even know you wanted come true, and go on the most amazing journey of self-discovery, learning things about yourself you never would have known. Just get on your bike!”

FOR MORE INFORMATION Ewan McGregor and Charley Boorman

12 | Motor Trader May 2014

www.charleyboorman.com www.compassexpeditions.com

News

NORTH QLD SURVIVES TUSSLE WITH CYCLONE ITA T

HE REPORTS MADE for scary reading: ‘Cyclone Ita has the potential to take lives', said one; ‘Category 5 Tropical Cyclone Ita compared to killer Typhoon Haiyan in Asia’, said another.

If you were living in north Queensland at the beginning of April, these are the type of headlines you would have read with trepidation as you waited for the storm to hit.

However, though torrential rains and fierce winds did do plenty of damage - buildings and farm crops were wrecked, flooding caused the rail network to close in some areas, and utilities were put out of action for days with as many as 13,000 residents without power - Ita wasn’t nearly as catastrophic as predicted.

Cooktown, a community of around 2000 people situated 330kms north of Cairns, was expected to feel the full brunt of the cyclone, and it was a nervous time for locals, even though the storm weakened as it approached

and the community is well-versed in the whims of tropical weather.

“The mayor of Cooktown summed it up well when he said we dodged a bullet,” said Gregg Mayo, MTAQ member and owner of three Caltex service stations in north Queensland, including one in Cooktown. “Everyone was prepared for the worst.”

“For us, we suffered very little physical damage to the building. Losing electricity and having no running water were issues, but we have a generator on site and it coped as best it could.

“In business terms, we were closed for a day when the cyclone blew over.

“THE MAYOR OF

COOKTOWN SUMMED IT UP WELL WHEN HE SAID WE DODGED A BULLET.”

Weipa

Cooktown Cairns

Townsville

Mackay

Rockhampton

With the roads flooded and rail lines affected, it’s the replenishing of the stock now that will be the challenge for us.”

There was extra pressure for Caltex Cooktown to be well-prepared for Ita’s arrival though. With Caltex having the contract to supply fuel to government departments, it was important the business did not falter as local government workers, SES volunteers and other emergency services came looking for fuel.

“We have to be available to supply them in times of need,” said Gregg.

Gregg’s site manager at Caltex Cooktown, Michael Czarnecki, was part of the local disaster management group and said community preparations, as well as the weakening of the cyclone once it crossed the coast, were key to saving the town from more damage.

“The management plan worked very well,” he said. “The storm hit Category 5 on the Thursday evening (April 10), which was when the call was made to activate the evacuation and refuge centre at the Cooktown PCYC.” And though the cyclone slowed and weakened it was still a fearsome event.

“I’ve been through the last three big storms in far north Queensland – Larry, Yasi and now Ita,” added Michael. “And it sounds like you are sleeping under a freight train. The noise, even in the refuge centre, just shook the whole building.

“As for the business, we closed to the general public on the Friday but opened the site multiple times to give access to SES and local government vehicles to get fuel for their rescue boats and so on,” he said.

“By 10am on Saturday we reopened to the public under power generation.”

“Life goes on,” added Gregg. “You patch up and get on with business.

I’ve got customers who will turn up tomorrow and they’ll need diesel in their trucks and petrol in their cars.

“No one was seriously injured and, realistically, that is all that matters.”

May 2014 Motor Trader | 13

H.HARVEY ENVIRONMENTAL INITIATIVES • Grey water used on site.

• Rainwater collected and used on site.

• Composted food waste.

• Solar power to provide more thnan 95 per cent of business needs.

• Paperless recording records are scanned for electronic storage.

• Aluminium bottles for staff.

• Insulated panelling on exterior of building.

• Use of natural light to reduce the need for lighting in the workshop.

H.Harvey have installed a 100kw solar panel system at the Coomera site

H.HARVEY PRESTIGE GETS THE GREEN STAMP OF APPROVAL I T CANNOT BE denied that the automotive industry is changing.

And it’s not just with the types of cars appearing in dealers’ showrooms – be they hybrid or all electric – and which now feature in every manufacturers’ model inventory.

What these vehicles highlight is both the growing environmental considerations the public makes when purchasing a car, and the response of the manufacturers to those considerations.

Automotive businesses are, no doubt, aware of that public interest and the Green Stamp program is an initiative that can help a business respond to that.

Developed for the industry by the various Motor Trade Associations and supported by the Australian government, Green Stamp has three levels to its structure – with Level 3 being the highest grade of accreditation - and is designed to assist businesses to incorporate processes and practices to become more environmentally friendly, become more resource efficient and more environmentally sustainable.

14 | Motor Trader May 2014

Staff are give aluminium containers for drinking water, meaning no plastic bottles

And, as a statement of a business’s environmental stance, it’s a statement the public can respond to.

“The industry needs to be seen for what it is capable of doing into the future,” said Ben Chesterfield, Divisional Executive with MTAQ and one of the team carrying out Green Stamp audits.

“Motor vehicles have evolved – with unleaded fuel, with emissions control, with Australian design rules. That has happened with the motor vehicle and our industry has to be on the same page.

“Change isn’t coming, it is here, and

it is happening at a rapid pace.

“The industry needs to be viable, sustainable and environmentally friendly and Green Stamp is the proof that it is. It shows we are taking a step in the right direction.”

One MTAQ member who has gone through the Green Stamp auditing process and emerged with Level 3 accreditation is H.Harvey Prestige at Coomera, in Queensland’s southeast.

Owner Mark Wells, who also owns Wells Smash Repairs on the Gold Coast and Wells Bodyworks and Towing in Hobart, is proud of the business’s accomplishment, achieved thanks to good business practice and some innovative environmental processes.

To Mark, Green Stamp accreditation makes solid business sense, but there is more to it than just that.

“Apart from that aspect, I want to look after the environment for my children and my grandchildren,” he said. “And so we’ve made a lot of changes in the last three years.”

Those changes are wide-ranging,

H.Harvey achieved Level 3 Green Stamp accreditation for its environmental practice

covering not only the business and legislative ‘musts’ such as staff education, storage of hazardous materials, bunding of appropriate areas and noise limitation, but extending to a compost tumbler for food scraps (equally important for Mark's herb garden) and even to the containers his 30 employees use for refreshment.

“Our staff are given aluminium water containers,” said Mark. “And there are two water stations in the workshop providing filtered water.

That saves on the use of plastic bottles and having to dispose of them.”

It’s attention to detail that is a mark of a business that deals in the repair of prestige vehicles from Mercedes and Lexus.

However, the most potent symbol of H.Harvey’s dedication to their environmentally friendly push is the staggering solar power system recently installed at the business.

A massive installation of more than 400 solar panels covering the building’s roof, the 100kw system is expected to generate more than 95 per cent of the business’s total power needs.

Installed at a cost of $250,000 under the guidance of project managers Smartcom Consulting, the system should pay for itself within three years.

“It is one of the biggest systems in southern Queensland,” said Mark.

“The reason behind the installation was partly the exorbitant power prices. We’d seen a dramatic rise on

a monthly basis. In the first 12 months with this system I hope to save $12,000 on my electricity bills. In four years time I hope to be saving $80,000 a year.

“And with the battery back-up system, even if there is an outage we will be able to keep on working.

“It will pay for itself in a maximum of four years, but I’m hoping for three.”

The system is available with an innovative power monitoring system allowing users to see what equipment is using most power and when, keeping control on costs.

“H.Harvey are the ‘gold standard’,” said Ben Chesterfield, referring to their Green Stamp audit. “They have a paperless record system, an environmental management system, solar power, and have waste management for all their waste – tyres, batteries, glass, aluminium, steel, plastics, everything.

“Their housekeeping is spot on too.

The fact that Mark could access every service docket, every personnel file, every license and so on for the audit is a credit to him and the business.”

Although H.Harvey has invested heavily in its solar power system, accreditation for Green Stamp does not necessarily have to be as investment-heavy.

“Good, responsible, business practice should be enough to see a business make Level 2,” said Ben. “And Green Stamp shouldn’t be seen as a cost to the business. It pays to have it.”

H.HARVEY CHOOSES SMART SOLAR SOLUTION THE SOLAR POWER system at H.Harvey is a 100kw system installed by Smartcom Consulting, a renewable energy specialist company with a national reach based at Southport on the Gold Coast.

A ‘grid tie’ system with battery backup, senior consultant Graham Robertson said the system would reduce H.Harvey’s power bill dramatically and allow the business to continue to operate during times of power outages and blackouts.

“The system is designed so that everything it produces is used here,” said Graham. “It will supply up to 95 per cent of requirements for the business and pay for itself within three years.

“We’re also installing an Uninterrupted Power Supply system - a battery backup - which means that if there is a power outage, H.Harvey will still be able to operate much of their business.

“Their administration, computers, offices will still be functional because the battery system will supply those as well as run some small pieces of equipment.”

Drawing on the latest technology, Smartcom also has available innovative analytical devices that can measure the amount of electricity being used at any time of the day.

“There’s an old saying, ‘You can’t manage what you can’t measure’ and that is what this tool is all about,” said Graham.

“These analytical devices relay to a computer, in real time, exactly how much power is being drawn by equipment at any time of the day. Through this system you can see exactly how much it is costing you per minute, per hour, per day. That’s very valuable information for any business.”

Smartcom used ‘Tier One’ high performance products for the system products that come with comprehensive guarantees and an additional 25 year performance warranty for the solar panels,.

Also installed was an energy management system that monitors the solar system so the business can check how it is performing.

Graham at Smartcom can be contacted at graham@smartconsult.com.au or by phone on 0403 139 767

May 2014 Motor Trader | 15

Make: CHEVROLET MODEL: C10 PICK-UP YEAR: 1969 ENGINE: 350 V8 CHEV TRANSMISSION: TURBO 350 AUTO OWNER: DAVID DELAFORCE OWNED: 4 YEARS

KEEP ON

TRUCKING

1

969 WAS A year of contrasts. On the dark side of the ledger, the Vietnam War was in full swing, while, on a lighter note, humanity ‘spaced out’ at the Woodstock festival and then went out into space and landed men on the moon. When Neil Armstrong jumped onto the lunar surface pronouncing it a ‘small step’, planet earth watched in awe and begged to differ that it was anything but ‘small’.

1969 was also the year that David Delaforce’s Chevrolet C10 was built – a classic American pick-up that somehow found its way to these shores and, in 2010, to an auction house in Brisbane.

“I bought it from Pickles auctions,” says David. “Among other things, Pickles deal in damaged vehicles. We go every week and it just happened to be there.

‘We’ is David and son Wayne, who works with David at the 8-acre Park Ridge Wreckers south of Brisbane, and who shares David’s passion for classic American muscle (he owns a 1968 Pontiac Firebird which we shall focus on in a future edition of MT).

The pair's passion has seen a fair number of American classics pass through their hands over the years and sees them travel to the USA on a regular basis to purchase them.

In fact, when MT meets them, Wayne has just returned from a trip to the States to buy another batch.

It sounds like an expensive hobby but, according to David, it’s an affordable way to own classic vehicles – a reflection

16 | Motor Trader May 2014

of the huge classic car business in the US, and their popularity here.

“We don’t have to import all the parts from the States,” he says. “A lot of stuff is available here. There are a lot of importers that are selling parts on a large scale for Chrysler, Chev, and Ford. It’s as simple as getting on the internet and dialling away and ordering. There’s not much they don’t make for the popular old model cars now.

“There are even quite a few C10s around. The 1957 model is starting to become really popular. In fact, my son just purchased one on his trip to the States.”

Seeing the vehicle ‘in the flesh’, so to speak, also means you won’t end up buying a lemon.

“There is a ‘buyer beware’ element to it,” says David of purchasing the cars from abroad. “We did buy a vehicle once, an Impala, without going over to see it and that was a mistake. It was a real rust bucket.”

As for David’s C10, it too needed a little work.

“It wasn’t in the best shape when I got it,” he agrees.

“Old American cars are well known for rust. If you ever buy one, check it out properly. The old ‘metal bug’ does get to them.

“Fortunately there wasn’t too much rust on this one apart from the doors. They were like Swiss cheese!”

“Apart from repairing the doors, we painted it, re-trimmed

it, did the suspension and bought the wheels from the US. Inside, we put in new door rubbers and trim, new carpet and we re-did the seat.”

Unusually perhaps for a classic car owner, David uses the C10 for the purpose for which it was built – it is a working vehicle.

“It’s very good for that sort of thing,” he says of the C10’s practical abilities.

David can’t put his finger on why or how exactly he got into American muscle cars.

“One of my first jobs was working in a garage and I was always mucking about with cars,” he says. “But why American cars? I think it’s just the idea of them and the novelty of them. I also think you get more relaxation from driving older cars – you can go to swap meets and meet up with people with the same interests.”

“I’m not in a club, although that’s mainly because of the time needed to try and get away to events and so on.

However, we have heaps of friends who drive old cars and we do meet up at different venues. There are nights when we go for a ‘run’ and we can get 200-300 cars joining us.”

“We have taken the C10 to a couple of car shows too, like the Shannons show at Willowbank and shows at Rochedale and Rocklea showgrounds.

DO YOU HAVE A PRIDE AND JOY IN THE GARAGE THAT YOU WOULD LOVE TO SEE IN THE PAGES OF MOTOR TRADER? Contact Jonathan Nash at jonathann@ mtaq.com.au or 07 3237 8721 and let’s see if we can share your classic with other members.

“We also take half-a-dozen spots at the ‘Cooly Rocks On’ Show at Coolangatta each year,” he adds, referring to the huge nostalgia event held south of the Gold Coast each year to which he and Wayne take a number of cars from their collection.

That’s an indication of how deep the passion for these cars runs in both men. And, no doubt, they will continue to scour the internet and travel to the States in search of classic American vehicles. It’s a passion, a hobby and, once that bug bites, it’s hard to give up.

May 2014 Motor Trader | 17

Training matters

PUSH IS ON FOR W MEMBERS ESSENTIALS Contents 18 Training matters 22 Members matters 26 Member profiles

SOMMERVILLE SMASH ULTRATUNE VITANZA’S BRIDGESTONE TYRE AND MECHANICAL

28 Industrial relations

18 | Motor Trader May 2014

T

HE PUSH TO attract more women into the automotive trades continues.

As mentioned in the March edition of MT, Auto Skills Australia (ASA) is part of the Women In Auto Trades initiative – an alliance between government, the automotive industry and other groups and organisations – supporting women to take up and complete an automotive trade apprenticeship.

This push is designed to meet the skills shortage currently afflicting the industry – a shortage that is estimated to be in the region of 22,000 positions across many automotive disciplines.

ASA are addressing this issue via a social media campaign that has been taken up in the wider media landscape.

MT talked to Peter Gostelow, National Project Manager, MAAP My Future, about the initiative, and, also talks to three young women who have entered the trade through training with MTA Institute of Technology (MIT). ....................

“There are less than 4 per cent of females engaged in non-traditional trade areas of automotive,” said Peter Gostelow, highlighting the amazing statistics plaguing the industry. “In some states that is less than 2 per cent.”

The figures are a marked contrast with how women impact the industry as a whole, with research showing women make up 65 per cent of new car buyers and 80 per cent influencers in the purchase-buying decision.

Such is the disparity in the relationship between women and the automotive industry - that they should

“EMPLOYERS HAVE

BEEN VERY SUPPORTIVE AND I’VE HAD VERY ENCOURAGING FEEDBACK.” be so important as customers but be so under-represented in the trade itself.

But just a couple of months in to the Women In Auto Trades campaign, there is genuine hope that this situation can be reversed.

ASA launched the Women In Auto Trades Facebook page on International Women’s Day in March and the page – with 600+ ‘likes’ - and the associated website have become increasingly popular, with more profiles of women enjoying the experience of working in the industry being uploaded all the time. And the mainstream media has been taking notice, with coverage on television and in print steadily growing.

The process in creating the initiative was started about a year ago.

“All of the state governments in COAG (Council of Australian Government) signed an undertaking in May of last year to see a greater uptake of females in non-traditional trade areas,” said Mr Gostelow.

“MAAP My Future attracted funding from the NSW government to support an initiative - Women In Auto Trades. They provided us with funding to create the website, our Facebook presence and printed material - and also gave us the ability to do some

it is seen as a dirty, heavy industry – not the type of thing for women. But the profiles we have of women in the industry have highlighted that this image is outdated and that they have forged good careers and there are many options for women in the industry.”

Mr Gostelow highlights that Australia’s Defence Force, like auto, has, traditionally, been male-dominated.

“If you look at defence advertising you see female leading officers, female pilots – these roles were male roles.

What we've seen is a change brought about by advertising - seeing women take key roles within defence. So there has been a cultural change in perceptions regarding that industry.

“We are looking to do the same with auto - to change perceptions and create awareness for young women that auto

REBECCA CLARK LIGHT VEHICLE APPRENTICE AGE: 32 REBECCA CLARK COMES a little late to the automotive trade.

With many apprentices entering workshops in their early 20s, Rebecca has taken a more winding road to get where she is today – a 2nd year light vehicle apprentice with national car service company Ultra Tune, working out of the Sandgate workshop in Brisbane.

“I like old cars,” she says. “I can’t really explain it other than I love them and I think they’re interesting. They’ve got soul and character. That’s how my interest started.

“I left home at 18 and my housemate and I used to play around with our cars.

I was always interested, although really it was more of a hobby.”

That interest was not enough to get Rebecca into the workshop. Not for a while at least.

She worked in a few office-bound roles, got married and had a child. But the love of cars never left.

“After having a child, I was working

casually at Woolworths but I didn’t really have my heart set on that as a career.

“I was tinkering on our cars at home when my husband, Graeme, suggested one day that I ask to do some work experience. I really had nothing to lose.”

So that’s what Rebecca did, scoring herself work at a local Volkswagen specialist, with whom she would eventually start her apprenticeship, before moving to Ultra Tune which, she says, was a better fit for her as it was a little more mainstream.

“We do everything here,” says

provides good careers.”

The MAAP My Future website contains resources for women to research auto careers and includes a career profiling tool that would let them know the best career to suit their personality and skills.

“This profiling tool, since its inception, has had 3500 young people use it and we have seen a high percentage of them go on to explore an automotive career - applying for jobs and getting into the industry - and many of them have been women.”

The Women In Auto Trades initiative will run at least until March next year and MTAQ will be doing its part to help. https://www.facebook.com/ WomenInAutoTrades http://maapmyfuture.com.au/women-inauto-trades/

Rebecca. “And when there is time and something different or unusual comes in, the mechanics call me across to see if I’ve seen anything like it before.

“They take their role as mentors seriously and that’s really good.”

Rebecca puts her success, and her enjoyment of the job, down to several factors.

“When I was in my early 20s I was interested in becoming an electrician, but I didn’t really have the confidence to back myself at that age.

“Boys can be different in the way they interact with each other and though I’ve always had a lot of male friends I don’t know how I would gone in that environment when I was younger.

I think I may have been easily offended.

“Now, I’ve grown up and matured as a person and my sense of humour has developed. And a sense of humour is important. It’s important to be able to have a laugh.

“Ross is very good,” Rebecca says of Ross Thompson, owner of Ultra Tune Sandgate and three other workshops in Brisbane.

“When I started here everyone was very accommodating and that’s the May 2014 Motor Trader | 19

E S S E N T I A L S

filming of women in the workplace to act as role models. When this content became public it was picked up by a number of media outlets.”

So why this initiative? After all, the fact women make up a tiny proportion of industry tradespeople is hardly a new phenomenon.

According to Mr Gostelow, there are two elements they hope to tackle.

“Part of our research showed that some automotive businesses hadn’t even given a thought to employing females.

“It wasn’t that they wouldn’t, they just hadn’t given it a thought. But employers have been very supportive and I’ve had very encouraging feedback regarding women in the industry.

“The other part about it is we have a problem with image in the industry:

M E M B E R S

WOMEN TO JOIN THE TRADE

E S S E N T I A L S M E M B E R S

Training matters Continued from page 19 work environment Ross has fostered.”

And for Ross Thompson, employing Rebecca was a no-brainer.

“She’s going well,” he says. “It seems that the busier she is, the more she enjoys it and she is constantly searching out knowledge and wants to know how to do more and more.

“There are two key things when I’m going to employ an apprentice,” he adds.

“The first is the passion to want to do it. Our trade is not a highly paid one, so they really have to want to take it on. And second, and just as important, they do have to have some mechanical aptitude.

“I spoke to Rebecca’s previous employer and he had only good things to say about her and when I sat down with her, it struck me how passionate she was about wanting to do this.

“To be in her early 30s, and female, and to be chasing this so hard – that was enough for me.”

With the backing of a four-store enterprise and an innovative rotational system, Rebecca will get even more seasoning and experience.

“I have a rotational system where all the apprentices move every few months between the stores,” says Ross. “That means they’re exposed to different environments, different staff, and means they get a grounding on a wide variety of cars.”

With that kind of support, Rebecca sees no reason other women can’t enter the automotive trades.

“I’d tell them to go for it. There’s nothing holding you back and there’s no reason why you can’t do it,” she says.

“The only thing stopping you is you.

“Being able to do the job is the most important thing,” she adds. “I’m not here to make up the numbers. I’m here to work, and I’m really enjoying it.”

As for her future, Rebecca is just enjoying things as they are at the moment.

“I haven’t thought too far ahead,” she says with a smile. “Even when I’ve finished my apprenticeship I won’t know everything. There’ll always be something new to learn. So I’ll keep on going and see where it takes me.”

20 | Motor Trader May 2014

JAIMEE WICKS LIGHT VEHICLE APPRENTICE AGE: 26 OUT IN A northern suburb of Brisbane lies Kirkfare Klassics, a private collection of quite gorgeous classic motors - mainly British marques such as Jaguar and Jensen.

Overseen by curator Steve Wicks, and at the behest of its owner, the collection is being lovingly restored in a purpose-built workshop by a small team that includes 26-year-old Jaimee Wicks, Steve’s daughter, a second year Light Vehicle apprentice with MIT. Though she is now happily ensconced in the industry, Jaimee’s route to her apprenticeship has been a difficult one.

Jaimee wanted to get into the automotive industry as a mechanic from her teens.

“I remember an old boyfriend had a Datsun 1600 which he used to race.

I would help out at races - change tyres and so on - and that’s probably where the bug bit.”

“I left school at 16 and was looking to get into the industry,” she says. “But I couldn’t find an apprenticeship. In the end, a friend of a friend hired me as a detailer and I was there for about three years. As I was around cars, that was enough for me at the time.”

Moving to Brisbane when she was 20, Jaimee hoped to score a mechanical apprenticeship but things didn’t work out as she had hoped.

“I was hoping to get a mechanical apprenticeship but no one would hire me at all. I got laughed at. Back then I was just a scrawny country girl looking to become a mechanic and no one would hear of it.”

But, sadly, Jaimee believes it was because of her gender that she was denied an apprenticeship.

“Oh yes, it was because I was a woman,” she says. “People told me that I shouldn’t even bother trying.

That was something I had to deal with for a while. But I would not give up. I wanted to be in the industry so desperately that I just kept at it.”

To keep going, Jaimee worked as

“IT TOOK ME LONGER

THAN OTHER PEOPLE TO GET HERE BUT I COULDN’T BE HAPPIER NOW. I’M EXACTLY WHERE I WANT TO BE.” manager of a fast-food restaurant for a while - a job which, to put it mildly, she didn’t enjoy.

“I hated it,” she says. “There is nothing worse than doing a job while dreaming of doing something else.”

Eventually, Jaimee secured a traineeship studying Engineering Certificate II and then a further position as a tradesperson’s assistant and, though she enjoyed both jobs, she did, she says, encounter some issues with the predominantly male staff.

“The consensus was 50/50,” she says. “The older guys thought I was a weak link, and that I wouldn’t be able to get the work done as quickly as a man. The younger guys were saying that I should be given a chance and that the industry should move forward in terms of letting women do these jobs.”

Eventually, Jaimee went to work for Kirkfare Klassics as a tradesperson’s assistant, and now a Light Vehicles apprentice, under the supportive eye of her father, and the collection’s curator, Steve Wicks.

“Jaimee will be successful because this is exactly what she wants to be doing,” says Steve, who volunteers that women, especially in the restoration side of the

MIT TRAINER PROFILE

JAHVARNE PEARSON PRE-APPRENTICESHIP TRAINEE AGE: 17 17-YEAR-OLD JAHVARNE IS the only female student on the Suncross training course – a foundation course in panel beating and spray painting which had its first block of two week training at MTA Institute of Technology (MIT) in April (See Page 22 for more on the Suncross course).

Originally from Hopevale in far north Queensland, Jahvarne graduated from her Cooktown school just a few months ago before travelling down to Brisbane to live with family and look for work.

It was fortuitous timing.

“I went to see the Red Cross about hooking me up with a kitchen job,” says Jahvarne. “They asked what I really wanted to do and I said I really wanted to work with cars. That’s when I was told about the course. I had an interview in February and was told straight away that I had got a place.”

Jahvarne’s interest in getting onto the course and working with cars stems from her desire to be able to work on her favourite vehicle – a 1970 Mustang.

“That’s my dream car,” she says.

“And I want to be able to work on it, fix it and be able to fold the metal myself.

“I’ve been thinking about that car for a long time - I must have for it to have brought me this far!”

With much of her family involved in the building trade it's no surprise that Jahvarne is interested in becoming a tradesperson. The industry she’ll work

in, however, is a different matter.

“It’s all about building in my family,” Jahvarne says with a grin.

“I decided I wanted to be different.

“My Mum likes the idea of me working in the trade, because she says I can fix her car for her, and do it for free!”

Though she is the only woman on the Suncross course, Jahvarne says she gets on really well with her fellow students and the experience has been a positive one.

“They respect me, and we have some fun” she says. “And I think girls should just go for it. There’s nothing holding them back.”

Jahvarne’s trainer on the course, Michael Cassimatis, is full of praise for the young student.

“She has a very good attitude,” he said. “She is prepared to give it a go. She has shown that she would like to be a panel beater and not many women go into that role. But the opportunity will be there for her and she certainly is not intimidated by the work.”

What is your specialised area?

Parts interpreting and vehicle sales.

What do you believe is the most important aspect of training?

What is your background in the automotive industry?

25 years with dealerships in Melbourne and Brisbane.

Making sure the students have the right skills to do the job correctly.

When did you become a trainer for MTA Institute of Technology?

January 2014.

It's a varied and diverse career where each day is different.

What geographical area do you service?

South East Queensland.

What is the most satisfying aspect of your role as a trainer for MTA Institute of Technology?

Imparting my knowledge on to apprentices.

Why should someone consider a career in the automotive industry?

What is the best piece of advice you can give to an apprentice starting out in the industry?

Listen, listen and listen more.

When you’re not training, what do you like to do?

Camping and 4wding.

May 2014 Motor Trader | 21

E S S E N T I A L S

MICHAEL BYENHOF

M E M B E R S

industry, are well suited to the trade.

“This is just my opinion, but the calibre of young women in the trade is great because they have a harder time getting in - they want it more."

And Jaimee is excelling in her role, recognising that working in a shop that restores classic cars gives her an insight others might not get.

“I get to learn skills here that have almost been forgotten,” she says.

“People come in to look at the cars and they tell me how they can remember, when they were driving cars like these, they could tell, just by listening to the carburettor, that the timing was off and needed work. I want to learn that sort of skill.”

Despite the struggle Jaimee has had in reaching her goal, she is enthusiastic about the industry as a career choice for women, including for those, like her, who have found themselves labouring in jobs they didn't like while harbouring the desire to make it elsewhere.

“It doesn’t matter what sort of job you’re in, if you have a passion for it, you should go for it,” she says. “It took me so long to do it but I got there.

“I like to think how far I have come. I started off a 16-year-old cleaning cars and now I’m laughing at the people who said I couldn’t do it.

Look how far I have come.

“I’m 27 this year. My goal was to become a fully-qualified tradesperson before I was 30. I’m now a second year apprentice.

“It took me longer than other people to get here but I couldn’t be happier now. I’m exactly where I want to be.”

E S S E N T I A L S M E M B E R S

Members matters

OPPORTUNITY KNOCKS FOR SUNCROSS STUDENTS F OR TWO WEEKS in April, MTA Institute of Technology (MIT) hosted a dozen young indigenous students taking part in the first practical component of the Suncross training course.

A collaboration between the Department of Education and Training, the Australian Red Cross, MTAQ and Suncorp Personal Insurance, the Suncross program is designed to give the students a solid foundation in a workshop environment before they move into a Panel Beating or Spray Painting apprenticeship with a Suncorp affiliated business.

Split over a number of components across several weeks, the students start the course with two weeks of coaching with the Red Cross before moving to a practical side of the course, switching between work placement with a Suncorp affiliated business and training at MIT. “The program is set up to give foundation skills in life as well as employment so that when the students start with employers they have those basic skills,” said Duncan Kerslake, Program Manager, Indigenous Employment & Enterprise Portal at Australian Red Cross. “We spend a lot of time working with the students on budgeting, employability skills - how

Raymond Pledger

22 | Motor Trader May 2014

to get a job and keep a job.

“The students do that, then come to the MTAQ, then work placement with their assigned employer. If everything works out, they will then start their apprenticeship with that employer.”

This is the second year the program has run, and with eight of the eleven students from 2013 now engaged as apprentices, the success has sparked interest from other regions.

“There has been a lot of interest from other areas about running the same course,” said Duncan. “It’s getting a reputation for being a great program.”

For the students who will receive work experience and apprenticeship opportunities through Suncorp affiliated businesses, the participation of the insurance giant has been invaluable.

“Suncorp have been extremely supportive all the way through, I can’t speak highly enough of their support and the way they’ve got behind the program and worked with us to secure these really positive outcomes,” said Duncan.

Suncross is one of several programs in which Suncorp are involved across the country.

“Our involvement comes through the Approved Repairers that give the students exposure to the workforce,” said Brett Wallace, Supplier Development Manager with Suncorp

Personal Insurance, of the businesses that offer the student’s work experience.

“At that time, the employer gets to have a look at them and, hopefully, that will roll into an apprenticeship for them.

“If we see value in doing some of these things, it’s something we look at,” he added. “In Melbourne we have a panel shop that is an initiative with Mission Australia, and we have a pre-apprenticeship program that we run in South Australia as well. There are a number of initiatives.”

19-year-old Raymond Pledger, a student on the course, has high hopes for where it might lead.

“In the first part of the course the Red Cross were assessing us and building confidence in everyone. That was good,” he said. “And it has been going well. I’d like to have my own business one day in spray painting, panel beating, mechanical - a bit of everything.”

“They’re all progressing well,” added trainer Michael Cassimatis, who oversaw the students while they attended MIT. “They’re a good team.

“They’re easy to get along with and they have a good sense of humour.

They’re a nice group of young kids who are giving it a go.”

The students will return to MIT towards the end of May for a further two weeks of practical work.

E S S E N T I A L S

S

UPPORTING YOUR STAFF - through training and education for example - is an obvious choice for any business. Employees are, after all, critical to the success of almost any enterprise.

But, sometimes, businesses go that bit further in supporting their staff - a philosophy that can reap benefits not only in terms of loyalty and developing a great team, but also in business success.

MTAQ member British Off Road is one such business.

Located on the Sunshine Coast, British Off Road is a Land Rover specialist, owned and run since 2008

by John Calder, wife June, and sons Mark and Ross. And when they say they are specialists, they mean it - their staff of 22 own 38 Land Rovers between them, and with more than 15,000 new parts in stock, the site is a gold mine for any fan of the marque.

And fans do know about them - the business has expanded in the six years since the family bought the firm, including the installation of three new hoists for servicing, and extensions to the land area of the site to hold the 180 vehicles ready for dismantling.

Key to that success are the staff, including the eight mechanics and apprentices in the company's workshop.

One member of that team is Michael Smith, a 34-year-old Light Vehicle apprentice, now just a few months into his first year of training.

Michael is no ordinary apprentice however, for he was left unable to speak after suffering a stroke at the age of just eight.

It's a disability that forced him to communicate via typing onto his mobile phone. It also, sadly, was a disability that made it hard for him to find work - a situation that saw Michael offer his time and skills to community work instead.

“I was bedridden for five months and couldn't move my right side,” said Michael. “I've come a long way since I was told I’d never get out of bed again.”

“Because of my disability I was restricted with what I could do so I shifted over to SES which had no

M E M B E R S

TEAMWORK AND SUPPORT A RECIPE FOR SUCCESS

John Calder, Michael Smith and Mark Calder from British Off Road

real restrictions. I spent 14 years with Victoria SES and 10 with the Country Fire Authority.”

“Michael came to us through Epic Employment,” said John. “And his resume was filled with working with rural fire brigades, the SES and all sorts of community services.

“It was obvious that he wasn’t a person who sat back. He wanted to go out there and do it himself.”

That attitude was enough to convince British Off Road to give Michael a job.

One of the first challenges the team tackled was the communication issue, which saw them ditch the mobile phone for something larger.

“He was very restricted with the small phone and it was hard for other people to read, so we managed to get him an iPad,” said John.

And it has clearly been of benefit, with Michael doing well in his apprenticeship.

“It’s been really good, I really enjoy it,” said Michael of his training.

For MIT trainer Darryl Shiels, the communication hurdle hasn't held Michael back.

“I can often work out what he wants to say to me before he finishes his typing. It's working out well,” he said.

“He works hard and although he can't speak, his smarts and hand skills are all there.”

Along with his new job, Michael also has a new addition to his family a daughter Mikayla with partner Sharn.

And he also has a new home.

British Off Road were able to help out there too, calling upon some contacts in the real estate business to assist him in moving out of a small caravan and into a rented home.

“He’s done it pretty tough through his life,” said Mark. “He didn’t get many opportunities and he was doing it very hard there with his partner and young baby. Where he was living was not ideal.”

The support given to Michael is not an isolated case at British Off Road.

Support from the business has been extended beyond the workshop to other staff members too - including for those with long-term medical issues.

John, however, is reluctant to discuss his family's generosity of spirit too much further.

“We just don’t like to see people doing it tougher than they have to,” he said.

It’s the kind of statement, and treatment, that makes for a loyal team.

Just ask Michael who, when answering a question about his future plans and where becoming a tradesman might take him, answers simply: “I’m not going anywhere. Not unless they kick me out!”

May 2014 Motor Trader | 23

E S S E N T I A L S M E M B E R S

Members matters

BMW EVENT LOOKS TO THE FUTURE C AR LAUNCHES CAN be pretty formal affairs – a smart presentation by a manufacturer to a small number of serious-looking journalists who sit ready to pepper the presenter with questions on the minutiae of gear ratios and drag coefficients.

Not all are like this, though.

Sometimes they are ‘events’.

MT was lucky enough to attend one such ‘event’, called ‘BMW Future’, staged by MTAQ member Brisbane BMW at the city’s South Bank Piazza.

A 2,150-seat arena, the Piazza was filled to capacity as new and upcoming models from BMW were exhibited in a show that was as much rock concert as product launch. A perfect example of the skill of hi-tech presentation, the Brisbane BMW team used music, lights, smoke machines, film clips and guest speakers to produce a hugely impressive evening.

The business of the night included the introduction of new models for the 2-series and 4-series, as well as the new X5, Mini and a host of others.

The real stars of the event though were the all-electric i3 and, in particular, the hybrid i8, due to go on sale in Australia later this year. Hidden beneath dark covering, when the i8 was revealed it drew gasps from the crowd.

No surprise there really, for this was the first time a model of the i8 had been seen in Australia and it is a stunning piece of work – as much a piece of art as a car. And there will, no doubt, be a fair number of punters willing to hand over the best part of $300,000 to have one in their garage.

24 | Motor Trader May 2014

Designed from the outset as a plug-in hybrid sports car, the i8 is powered by a 170kw, 1.5-litre, threecylinder turbocharged engine driving the rear wheels and a 96kw electric motor powering the front wheels, and it delivers figures of 0-100kmh in 4.5secs, a top speed of 250kmh and a combined fuel efficiency of 2.5l/100k.

The major guest at the event was Volker Richter, BMW’s Vice-President for Customer Focused Quality Management. In a well-orchestrated presentation, Mr Volker gave a rundown of BMW’s technical innovations, the future of BMW’s model range and some background into the environmental work BMW has put into the development of its vehicle range.

For those with a ‘green’ bent to their thinking, BMW seems to have covered all the bases and the future, as the saying goes, looks bright indeed.

LUXURY LUGGAGE IS TAILOR MADE FOR THE DISCERNING BMW i8 owner who doesn’t wish to sully the glorious appearance of their new car with a tatty old briefcase or suitcase slung on the back seat, then luxury fashion label Louis Vuitton has come to the rescue.

The French company has created a tailor-made set of luggage for the new BMW i8 that will fit perfectly in the car’s cargo areas. Made entirely of a special carbon fibre textile, the collection was apparently inspired by the i8 itself and certainly does add a certain ‘je ne sais quoi’ to an already glorious vehicle.

Not exactly renowned for manufacturing goods at bargainbasements prices, the luggage will set you back a fair bit.

But then again, if you have to ask . . .

“THOSE BRANDS WHOSE CARS WERE BUILT WITH THE QUALITY TO WITHSTAND THE RIGOURS OF RURAL LIFE, LIKE MERCEDES AND ROLLS ROYCE, BECAME FAVOURED BY WEALTHY LANDOWNERS.” features which together provided the basis of the modern motor car.

The 1909 outback Mercedes retains these original features, and has the honour of being quite possibly the world’s oldest shaft-driven 35 hp Mercedes. It was with this model, first launched in 1908, that Mercedes introduced shaft drive into their cars.

“We had been in discussion for a

while with the Mercedes’ Australian owner and are delighted to have secured such an interesting early Mercedes for the Sale," said James Knight, Group Motoring Director at Bonhams.

Daimler, manufacturer of Mercedes-Benz motor vehicles, can trace its automotive roots back to 1886 when Carl Benz patented his pioneering Motorwagen, and Gottlieb Daimler fitted one of his new internal-combustion engines into a four-wheeled carriage. Fourteen years later, in 1900, wealthy entrepreneur Emil Jellinek commissioned Daimler to create what passed into history as the first, 'modern' motor car, which he marketed under the name of his daughter Mercedes.

In 1926 the Daimler and Benz companies merged, the combine subsequently marketing its mainstream product under the Mercedes-Benz brand name.

May 2014 Motor Trader | 25

E S S E N T I A L S

1909 35HP MERCEDES with a rugged past, estimated at €480,000-680,000 (approx. $700,000-$1,000,000) is being offered on 12 July as part of Bonhams' Mercedes-Benz Sale at the MercedesBenz Museum in Stuttgart, Germany.

The sale will feature a choice selection of some 40 motor cars manufactured by the renowned German marque over its more than century-long history.

Perhaps the last place one would expect to find an early Mercedes is at Isis Downs, an isolated Queensland sheep station. However, that is where this 5.3 litre shaft-drive car lived for many of the early years of its life, serving as the Station Manager’s car from 1914 and remaining on the property until the early 1930s.

The Mercedes was constantly exposed to the harsh conditions of the outback, where early cars suffered from numerous mechanical difficulties.

The rough terrain would soon emphasise any weakness in a vehicle, with common problems including broken axles and persistent issues with the perishable Edwardian tyres and wooden wheel rims. However, those brands whose cars were built with the quality to withstand the rigours of rural life, like Mercedes and Rolls Royce, became favoured by wealthy landowners.

The Mercedes was purchased by a neighbouring farmer in the 1930s and remained there until the 1960s, when it was rescued and restored. Despite being more than a century old, the car has had only five owners since new.

Widely regarded as the first modern automobile right from the beginning when it was unveiled in 1901, the first Mercedes (which was also a 35hp model, but equipped with a different engine and chaindrive) set an entirely new benchmark in motoring. In the following years the company continued to develop a range of models from the original 35hp Mercedes but, in essence, the low-built steel chassis, a light and powerful engine with honeycomb radiator (instead of primitive gilledtube type), introduced easy-to-drive

M E M B E R S

OUTBACK MERC STARS AT BONHAM’S AUCTION A

E S S E N T I A L S M E M B E R S

Member profiles

Sommerville Smash

Ultratune Location: Wooloongabba Type of business: Auto Service Centre Number of employees: 5 Trading since: 1980 MTAQ member since: 2003

Vitanza’s Bridgestone Tyre and Mechanical

26 | Motor Trader May 2014

How did you hear about the Motor Trades Association of Queensland? (MTAQ) Visit from MTAQ liaison staff.

How has being an MTAQ member benefited your business?

Provision of technical and industrial relations advice.

What has been your proudest business achievement to date?

Surviving the Brisbane floods!

What is the best thing about working in your industry?

Meet lots of interesting people and hear their stories.

What is the best piece of business advice you have ever given or been given?

What you can measure you can improve.

What would you say to someone thinking about joining MTAQ? Don’t delay, join now.

Type of business: Smash Repairs Number of employees: 20 Trading since: 1995 MTAQ member since: 2011

How has being an MTAQ member benefited your business?

• Keeping us up to date with current changes • EMTA & Insurance company direction (good or bad) • Networking.

What has been your proudest business achievement to date?

All of our insurance accreditations.

What is the best thing about working in your industry?

Knowing that we do our job properly and we have happy customers that are loyal to us and our company.

What is the best piece of business advice you have ever given or been given?

Do the job right the first time, stay upto date with industry changes and set yourself goals.

What would you say to someone thinking about joining MTAQ? Don’t think about it, just do it and voice your opinion. We will be stronger when we all stand together.

Ultratune

Vitanza’s Bridgestone Tyre and Mechanical

How did you hear about the Motor Trades Association of Queensland? (MTAQ) Upon starting in business in 1963.

Location: Fortitude Valley Milton Coorparoo

How has being an MTAQ member benefited your business?

Industry news and legal help. MTAQ is well respected and consumers feel safe dealing with an MTAQ member.

Type of Business: Tyre and Mechanical Number of Employees: 21 Trading Since: 1963 Member Since: 1963

What has been your proudest business Achievement to date?

Being in business for 51 years and having my family involved, our two sons manage the tyre stores and our two daughters are involved in the administration.

What is the best thing about working in your industry?

Interaction with customers and building customer relationships.

What is the best piece of business advice you have ever given or been given?

Honesty, credibility and supplying the right product at the right price.

What would you say to someone thinking about joining MTAQ? We have been members for 51 years and would advise anyone to join up now and enjoy the benefits which they have to offer.

May 2014 Motor Trader | 27

E S S E N T I A L S

Location: Nerang

How did you hear about the Motor Trades Association of Queensland? (MTAQ) Through general trade.

M E M B E R S

Sommerville Smash

E S S E N T I A L S M E M B E R S

Industrial relations

MICHELLE CHADBURN INDUSTRIAL RELATIONS OFFICER

SOCIAL MEDIA POLICY- WHY YOU SHOULD HAVE ONE FOR YOUR BUSINESS.

S

OCIAL MEDIA SITES such as Facebook and Twitter are becoming increasingly popular and are now a norm in our society.

With the high use of social media sites it is worthwhile for businesses to have a social media policy in place.

Social media policies can apply to any company-based social media site, instant messaging etc., but can also be written to include employee’s private social media sites.

It is reasonable to provide that an employee who uses social media and who has his/her settings on “public” must not: • Make any slanderous, derogatory, discriminatory or otherwise offensive comments about any staff, management or affiliates of the business.

• Defame the employer on any social media site; • Bring the employer into disrepute.

In addition to the above, you can provide that where employees have internet access it is for work purposes and all material posted on the system, including emails, remains the property of the business. You may choose to specify that an employee may have limited personal use of the internet during non-work hours such as lunch or morning /afternoon tea. Set out in the

28 | Motor Trader May 2014

“SET OUT IN THE

POLICY WHAT YOU DEEM TO BE APPROPRIATE OR INAPPROPRIATE USE OF INTERNET ACCESS, EMAIL OR SOCIAL MEDIA SITES.” policy what you deem to be appropriate or inappropriate use of internet access, email or social media sites.

State the consequences of breaching the policy by way of inappropriate use of social media. This may include disciplinary action such as a verbal or written warning and in some very serious cases, dismissal. Ensure that the stated consequences are in line with any other disciplinary policy that you may already have in place.

As with the introduction of any policy, a meeting should be held with staff to introduce them to the new or updated policy. It is recommended that you provide each employee with a copy of the policy and have them return a signed acknowledgement confirming they have read and understood the policy.

If you would like a social media policy template it is available on request to Ted Kowalski or Michelle Chadburn in our Industrial Relations Department.

Investment matters

MARKET WRAP

A

FTER A STRONG reporting season, the market largely traded sideways with the key investment debates revolving around if valuations had run too hard, the impact of quantitative easing unravelling and the extent and effect of the Chinese slowdown despite signs of improving economic activity.

VALUATIONS The PE of the market is trading a little above the average of the past two decades which suggests that it is modestly expensive. One of the main issues that arise in discussions is whether this signals that the market has run too hard and faces a major correction.

On this we would like to highlight that the major falls in the market PE (valuation) arose in 1990, 1994, 2002, and 2008. These periods were at the end of large interest rate rising cycles which ultimately placed pressure on market profits. Therefore it would be unusual to see a major correction at this point in the cycle as interest rates remain very low globally providing strong liquidity support.

Domestically we expect we are someway off the end of the interest rate rising cycle also, so we are comfortable that valuations will be able to avoid any major corrections.

In addition, sentiment remains cautious across the globe as demonstrated by the very strong fund flows towards bonds over the past decade. Over time we expect the rotation of funds from bonds to equities to normalise and continue to provide more support for market valuations.

END OF QUANTITATIVE EASING

The US Federal Reserve signalled the likelihood of US interest rates rising in 2015 as they prepare the market for the end of quantitative easing. Our portfolios are tending to outperform on the days the market is concerned with the unravelling of quantitative easing and this is a reflection of bottom up value we have found in some companies with offshore earnings, and avoidance of companies whose valuations appear to have been stretched as a result of the liquidity attached to quantitative easing.

CHINA

China has been seeking to shift away from growth at all costs as they try to build a sustainable economy, reduce pollution, corruption and excessive debt. However, it is a fine line as they do not want to fan the flames of civil unrest and they need growth to avoid excessive shadow banking losses and unemployment.

Recent economic data suggests the Chinese economy remains soft although the economic data is unreliable at this time of year, the anecdotal feedback seem to suggest confidence is lacking at present.

Speculation is building that a stimulus program will be announced which will provide a growth bridge until the major reform program announced over the past year begins to bite.

The main implications for Australia remain the resource sector which continues to struggle as the past decade boom unravels. Our expectation is that the investment capex cycle continues to unravel in Australia as the major resource companies focus

on efficiencies, reducing capex and boosting shareholder returns via special dividends or buy-backs.

IMPROVING ECONOMIC OUTLOOK

As discussed above, February was the best reporting season for some time, with 60% of companies beating analyst expectations and the market upgrading profit forecasts by 1%.

The market is anticipating growth this year of around 12%.

We are seeing improved business and, to a lesser extent, consumer confidence despite a series of negative headlines associated with Qantas and car manufacturing job losses. However we continue to see the Australian economic outlook as fragile with currency and fiscal pressures at the May budget meaning the RBA is likely to be on hold for a while longer. This is likely to support the housing sector and we would expect some further infrastructure plans from the Government to provide additional support.

DISCLAIMER This document provides general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above.

Investment in a Dalton Nicol Reid individually managed account can only be made on completion of all the required documentation.

Whilst Dalton Nicol Reid has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within.

May 2014 Motor Trader | 29

THE ROTARY CLUB

I

N LAST MONTH'S Motor Trader, we visited Danny Irvine from MTAQ member Automotive Plus and featured his glorious Mazda L10A Cosmo Sport in the Member's Classic feature.

As we mentioned then, Danny’s passion for Mazda has seen him build an enviable collection of classic models from the Japanese firm – a collection that will, no doubt, continue to grow.

Housed in a Brisbane warehouse, the collection contains models that are in some way important to Mazda's history, with a particular emphasis on the rotary engine models along with a number of

“THERE'S ALWAYS BEEN A FOCUS ON THE ROTARY-POWERED CARS FOR ME.” the small, standard engined Kei Class models - designed to fit a tight set of size, power and engine capacity rules.

“The vehicles I've acquired so far are models for which Mazda is well known and have some historic value to the marque. That’s why I have their first

1962

ever passenger car, the first 3-wheelers, the first rotary powered car.

“There's always been a focus on the rotary-powered cars for me. No other manufacturer invested the money into them like Mazda did.”

The collection has garnered interest from around the world and Danny hopes to develop an official showroom for the vehicles.

“The idea is that at sometime before I depart this earth I will have a static display, a museum, for the vehicles.”

Here are a choice few from Danny's collection.

1966

K360 TRUCK (Kei Class)

R360 COUPE (Kei Class)

PRODUCED BETWEEN 1959 and 1969, this three-wheeled, twoseater K360 pick-up truck had a cargo capacity of 300kg and a 356cc engine placed directly behind the cab. 280,000 of these little trucks were produced.

MAZDA'S FIRST PASSENGER vehicle. A two-door coupe with a 356cc engine in the back powering the rear wheels. Use of lightweight materials meant the R360 weighed in at just 380kg. The R360 was in production from 1960 to 1966.

1966

1968

P360 CAROL (Kei Class)

B360 PICK-UP (Kei Class)

THE CAROL WAS intended to be an all-round family car able to seat four adults in comfort. The rear-mounted, 358cc engine produced 14.7kW and the car weighed in at just 575kg. The Carol was the first micro-mini to be sold as a four-door model.

THE PREDECESSOR OF the Porter (see right), the B360 two-door, two-seat pick-up was introduced in 1961 and was also available as a light van version. Produced from 1961 to 1968 the B360 had two engine sizes - 358cc and 586cc - across its model lifetime.

30 | Motor Trader May 2014

1969

1970

L10B COSMO SPORT

R130 LUCE/RX87

THE L10B'S PREDECESSOR, the L10A, was the first production car to utilise the rotary engine. The L10B, produced from 1968 to 1972 had subtle design changes, was longer, had a slightly larger engine at 128hp and was capable of 200km/h. Only 1,176 were made.

A TWO-DOOR COUPE, the rotary-powered R130 was designed by Giorgetto Giugiaro who also designed cars for Lamborghini and Maserati, amongst many others. Mazda's only front-wheel drive rotary model, only 976 were ever made.

1973

1985

PORTER VAN (Kei Class)

HBSN2 COSMO

AVAILABLE AS A pick-up truck or a small van, the Porter was closely based on the B360. Production of the Porter ran from 1968 to 1976. A small 359cc engine produced enough power for the van to carry 300kg.

THE 1982 COUPE version of the 3rd generation Cosmo was the fastest production car in Japan - its 12A turbo rotary engine producing 120kW. This was the third of four Cosmo models, leaving Danny with just the CD series to finish that part of his collection.

1991

1992

JCESE COSMO

FD3S RX7

THE TWO-DOOR EUNOS Cosmo was the flagship model of Mazda's luxury line. The twin sequential turbo engine produced 300hp and could push the car to 225km/h (it was speed limited to 180km/h).

This car was the world's first production car to have a GPS system.

FAMOUS FOR ITS Bathurst endurance race winning exploits - it won from '92 to '95 - the FD3S topped a number of 'Car of the Year' lists when it first appeared. Danny converted his from a twin turbo to a single turbo - it pumps out a ferocious 400hp.

May 2014 Motor Trader | 31

Motorsport

SUCCESSFUL DEBUT FOR WEBBER IN WEC

M

ARK WEBBER HAD a successful return to motor racing, scoring a podium finish in the first round of the World Endurance Championship (WEC) in the LMP1 class at the six hour race at Silverstone, UK. With teammates and fellow drivers Timo Bernhard and Brendon Hartley, Webber drove the Porsche 919 Hybrid to third place after 165 laps on the 5.89 kilometre long track after the race was red-flagged because of heavy rain 24 minutes before the planned six hours were completed.

The overall victory went to Toyota drivers Sébastien Buemi, Anthony Davidson and Nicolas Lapierre.

“It's been a brilliant day for us,” said Webber. “I'm happy to have played a small role in the effort that's gone in from the team and everyone back at the factory to get to this point. Timo and Brendon drove exceptionally as well.

“It was a tough race for all the drivers with tricky conditions, and drizzle on slick tires is never easy. We managed to dodge a few bullets and survived some of the tricky phases. It was a great experience for me, I learnt so much today in the race. We were spot on with the pit stops in terms of the tyre strategy.”

Webber's teammate, New Zealander

Left: Mark Webber celebrates his podium finish in the World Endurance Championship's first round at Silverstone

Brendon Hartley was equally proud and pleased with the team's finish.

“It was an amazing feeling to bring the car back after my very first stint as a Porsche factory driver and hand it over to Mark.”

Toyota led for more than threequarters of the race and would end up finishing one-two when the race was stopped. The Audi R18 e-tron quattros both failed to finish while the No. 14 Porsche 919 Hybrid was also a casualty due to a hydraulic problem.

“It has been a fantastic weekend and it is brilliant to win my home race,” said Anthony Davidson. “It looked like it would be an epic fight with Audi and Porsche if it had stayed dry, but we knew the rain was coming and we had set our car up for wet conditions.

We made the right call on tyres, the strategy was just perfect; that’s how you win races.”

JARROD TAKES PODIUM SPOT ON RETURN TO SUPERMOTO CHAMPIONSHIP AFTER A LONG period of recuperation following a serious racing accident Jarrod Koppe, from MTAQ member Future Motorsport in Townsville, has returned to the race track.

The defending Qld Supermoto champion took a third-place podium spot in the S2 Class on his Suzuki RMZ450 at April’s opening round of the 2014 Championship, held at the Whitsunday Raceway.

And third spot was a success following his long, enforced period out of the sport

32 | Motor Trader May 2014

after shattering a heel and ankle in a crash during a practice last September.

“Considering I’ve been so long off the bike, I’m not unhappy,” said a philosophical Jarrod. “I wasn’t expecting the world and third is still in the running.”

“It took a lot for me to get back onto my pace,” he added. “I did actually get the fastest lap for the whole weekend but it was stringing those laps together. I think it was fitness that held me up the most.”

The Qld Supermoto Championship has,

for the moment, been shortened to just two rounds with the second round currently scheduled to take place in September.

That gives Jarrod plenty of time to get in some practice.

“I’ll get a lot more bike time in before the next round. We’ve actually got the Australian titles in June and that’s at the Whitsunday Raceway too, so I’ll get a lot of riding in.”

MT will keep tabs on Jarrod’s progress this season.

Industry insight

READY TO STICK YOUR HEAD INTO THE CLOUDS? C LOUD COMPUTING HAS already changed the world around us, geographical barriers are almost non-existent, you can talk to a loved one across the globe with no more than a click of the mouse. But with all this innovation in our personal lives, how is it affecting us in business?

Is it sustainable? And more importantly is cloud commerce a safe and secure option for small businesses?

Cloud commerce is software available via the internet with data stored at a remote location. Usually to access these services you pay a monthly subscription which will allow you a certain amount of space and abilities.

Cloud commerce in terms of up-front costs is cheaper than paying for a program, and is available to you at any place or any time. At home and realised you forgot to approve payroll? Easy!

Most accounting software like Xero is available on smart phones and devices, and describe themselves as ‘accounting software on the go’.

Although all software has minimum computer requirements, it’s just that, minimum. So unless you’re rocking a Commodore 64, your computer systems should be able to handle it. However it can be frustrating if you live in an area with slow internet access. So if you find you are repeatedly slamming your head onto your keyboard, it may be a good idea to check out some better internet options

before doing some permanent damage!

Practically all of the online accounting systems are integratable with other software and systems, and have pre-fill abilities, which frees up some more of your valuable time! Most even have add-ins that are like apps for your accounting software. You could go as far as saying accounting is becoming more exciting! Xero can be likened to an iPhone, with its minimalistic styles and colour schemes; the lifestyle promoted is that of modern technology, easy, available, and chic.

They also allow for real time reporting and information, so you can see exactly how you’re travelling this month, week, day, hour, minute. This allows you to be able to see how much a client owes you at the exact moment you walk through the door to visit them.

Cloud computing has really gone from strength to strength, and with that has come improved processes and speeds, along with greater security.

This would be the biggest concern in relation to cloud computing in general.

The best way to mitigate this is to do your homework and choose a reputable company. Do your research into the location of the data (as many are located offshore in countries with more relaxed privacy laws) and if there have been any major issues in the past. The big programs are known for their ‘bank level’ security, and being remote, you don’t have to worry about backing up

data and storing it somewhere else in case the office burns down!

Probably one of the biggest advantages of cloud computing, is the green aspect! Companies love showing off their Corporate Social Responsibilities (CSR) achievements, and what’s a better one than environmentally friendly! Of course it’s a good thing to be doing, but it doesn’t hurt to bolster your own CSR standings. Cloud commerce is greener than traditional methods because there is no production, packaging, or freight. This can also allow some staff members to do more work from home, which not only helps to lower carbon emissions, but keeps your staff happy in their flexible workplace!

If you’re beginning to realise that cloud commerce is the best way of moving forward in your business, why not have a read of our whitepaper: ‘11 things to consider before taking your business up into the clouds.’

CFO On-Call is a team of financial and business advisors who work with open-minded people, committed to business growth and achieving success.

For help call us on 1300 36 24 36 or visit our website www.CFOonCall.com.au For a FREE copy of our E Book ‘The Seven Key Numbers that drive Profit and Cash Flow’ visit http://cfooncall.com.au/ about/7-key-numbers

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Division

Boss Wrecking

Justin Zerner

217 Fleming Road, Tingalpa QLD

enquiries@bosswrecking.com.au

APRD

BP Upper Coomera

Maheswara Thatimakula

195 Old Coach Road, Upper Coomera

readyfuelbp@gmail.com

SSCSAQ

Les Kelly Panel and Paint

Corey Bylsma

14 Commercial Street, Bundaberg QLD 4670

leskellypanelandpaint@bigpond.com

NACA

McPherson Mechanical Repairs

Dugald McPherson

19 Darling Street, Ipswich QLD 4305

cluny61@hotmail.com

AED

Mega Motorcycles

Anthony Armstrong

37 Taklavan Street, Bundaberg QLD 4670

admin@megamotorcycles.com.au

QMID

Neumann Service Stations

Ronald Chambers

Cnr Stewart Road Hayter Street, Currumbin 116 Sugar Road, Maroochydore 6 McLennan Street, Albion

ronvic@bigpond.net.au

SSCSAQ

May 2014 Motor Trader | 33

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