Motor Trader August 2014

AUG 2014

MEMBERS CLASSIC: 1969 FIREBIRD CONVERTIBLE

OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

Automotive Air Conditioning Technology

Light Vehicle Mechanical Technology

Automotive Tyre Servicing Technology (Light & Heavy)

Automotive Body Repair Technology

Mobile Plant Technology

Heavy Commercial Vehicle Mechanical Technology

Automotive Underbody Technology

Automotive Sales

Automotive Electrical Technology

Management Courses Motorcycle Mechanical Technology

Automotive Refinishing Technology Automotive Pre-vocational Courses

ON THE JOB TRAINING IN YOUR WORKSHOP In most cases, Qld Government funding meets the cost of training

Call us on 1800 884 137 or visit www.mtait.com.au to register your apprentice

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.

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MTA QUEENSLAND ABN: 74 028 933 848

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CORPORATE PARTNERS

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From the editor Policy/Viewpoint Divisional news MTA Q&A ALAN CLARE: GOLD COAST DIESEL SPECIALIST Feature TAKING IT TO THE MAX: MAXIMILLION COOPER News CONVENTION MARKS BRIGHT FUTURE FOR NEW AADA Members Classic CRUISE CONTROL: 1969 PONTIAC FIREBIRD CONVERTIBLE

MEMBERS ESSENTIALS 19 20 23

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Training matters OUTBACK RALLY IS THE TRIP OF A LIFETIME STEVEN TONG WINS STUDENT OF THE MONTH AWARD FOR JULY Members matters Member profiles Industrial relations

29 Investment matters MARKET WRAP 32 Industry insight FINANCIAL CONTROL KEY TO BUSINESS SUCCESS August 2014 Motor Trader | 1

From the editor

JONATHAN NASH EDITOR

H

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

We have a bit of a focus on motoring rallies this month. Our main feature is an interview with Maximillion Cooper, the founder and driving force behind possibly the most flamboyant and ostentatious get-together of motoring enthusiasts you could ever hope to see - The Gumball 3000.

Celebrities, millionaires, billionaires and assorted members of the mega-wealthy and famous pay $70,000 to take part in an event that enables them to drive rare, unique and unquestionably extraordinary cars across nations and continents, stopping only to party and be entertained by some of the world's

most popular music acts, at some of the world's most exclusive nightspots, in some of the world's great cities.

It is, in short, an extraordinary event and may, some time soon, be swinging in Australia's direction.

Equally extraordinary, but for completely different reasons, is the Qld Great Endeavour Rally which took place in July.

A fundraiser for the Endeavour Foundation, the 8-day trek through the Australian outback in rugged, often decades-old vehicles, with only the most basic of amenities awaiting participants at a dusty campsite each night, couldn't be further removed from the Gumball 3000.

The Endeavour Rally has been running for nearly 30 years and in this month's edition we catch up with Jesse Adams, a 4th-year MIT apprentice who won Motor Trader's competition to become a member of the Rally's mobile workshop team.

It was, says Jesse, a week of late nights, hard work and a lot of fun.

In our MTA Q&A we meet Alan Clare of Gold Coast Diesel Specialist.

The South African-born businessman's expertise and dedication to his work has seen him create a successful business with a top-notch reputation.

In our Members Classic we focus on Wayne Delaforce's 1968 Pontiac Firebird. One of the Delaforce family's growing collection of classic cars, the Pontiac is a great example of

SAVE THE DATE THE ANNUAL PRESIDENT’S Ball is the highlight on the automotive industry’s social calendar.

This prestigious event will be marketed to all MTA Queensland members, clients and stakeholders and is expected to sell out.

The evening will feature dinner, entertainment and dancing and will include an awards ceremony recognising the best and brightest trainees and apprentices at the MTA Institute of Technology.

Date: 1 November 2014 Time: 6:30pm - 11pm Venue: Hilton Brisbane

2 | Motor Trader August 2014

classic American muscle.

Also in this month's edition MT chats with Bob Day, founder of automotive services business, Auto Leaders. The franchise business, started in 1997, has expanded to 8 stores across the southeast of the state and with great products, quality service and customer satisfaction at the heart of the company philosophy - as well as an eye for clever marketing and store location - steady growth looks set to continue.

As always, we will endeavour to bring you news and insight into the automotive industry, the most upto-date information regarding training opportunities and, of course, continue to highlight members' interests with MTA Q&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, of 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

Driving the Future of Queensland Agriculture • Toowoomba – 2–4 September 2014

Ag Show leads the way in innovation, education and industry technology

EXHIBITOR NEWSLETTER ISSUE 9 AUGUST 2014

More than 150 years ago, a group of agriculturalists and pastoralists from across the Darling Downs gathered to form the Royal Agricultural Society of Queensland.

Their charter as it still is today, was the promotion of agricultural excellence and education.

“Primary producers expect more from field day events than they ever did in the past and it is our role to ensure we deliver cutting edge technology and innovation to cement the Heritage Bank Ag Show as a must attend event” said Ag Show CEO Damon Phillips.

Heritage Bank Ag Show has become more industry driven and has forged strategic partnerships with the Department of Agriculture, Trade and Investment Queensland, University of Southern Queensland, Ag Force, Toowoomba and Surat Basin Enterprise and the Australian Agricultural College Corporation.

These partnerships allow patrons to have access to the latest agribusiness information, opportunities, training and education.

Recognising the role of primary producers has been implemented across our education system.

With this in mind, Heritage Bank Ag Show has established an Education Division.

Programs such as the very successful “Little Hands on the Farm” and “Ag Ed—The Classroom without Walls” will be presented over the three day event.

The University of Southern Queensland has been actively involved with these programs, in particular their agriculture, science and engineering departments.

A number of social and networking functions have been included in this years program.

The Darling Downs Sub Chamber of Agricultural Societies Rural Ambassador Awards will be presented on Tuesday evening recognising the importance of young people not only in agriculture but also the show movement.

Mr John Wagner, Chairman of Wagner Global Services will be the keynote speaker at the TSBE Agribusiness lunch on Wednesday.

Wagners is a Toowoomba based company with operations not only in Australia but also in Malaysia, PNG and Mongolia. The company employs in excess of 1000 full time staff as well as subcontractors and is currently building the Toowoomba airport which is the first Greenfield public airport built in Australia in 47 years.

Wednesday evening will be the “G’Day Asia Networking Function” hosted by Trade and Investment Queensland. Among the guest speakers will be Jo Sheppard from TSBE who will outline the “Ag in the Asian Century” Conference due to be held in October and also the recent TSBE led delegations to China.

The Rural Press Club will hold their annual breakfast on Thursday with guest speakers Andrew Bate of Swarm Farm Robotics and Craig Baillie, Director of the National Centre for Engineering in Agriculture at the University of Southern Queensland. The topic is “Future Farm— Can robotics revolutionize farm productivity and profitability”.

A ROYAL AGRICULTURAL SOCIETY OF QUEENSLAND MANAGED EVENT For further information contact Damon Phillips, CEO, RASQ on 07 4634 7400 or email rasq-ceo@rasq.com.au

Policy/Viewpoint

A

S I WRITE Viewpoint my mind keeps drifting to the families who lost loved ones on the ill-fated Malaysian MH17 flight from Amsterdam to Kuala Lumpur.

The horror of the treachery and the loss of innocent lives will be indelibly imprinted into the hearts of the families who have suffered loss - as it is ours.

As they grieve, we, the MTA Queensland Members and Staff are with them with our thoughts and prayers of comfort.

KELLIE DEWAR

POLICY ACHIEVEMENT

GENERAL MANAGER MTA QUEENSLAND

The Department of Transport and Main Roads (DTMR) has approved two initiatives on which we have made representations.

Disaster Plan - Movement of Unregistered (Dealer Stock) Vehicles We have had detailed discussions in relation to a provision for the movement of unregistered (dealer stock) vehicles during disasters. This would be a proactive measure to assist in preventing risk and damage to dealer stock for motor dealers whose locations are subject to flooding during natural disasters or extreme weather events.

The discussions with the Department have been positive and we will continue to work together to finalise a solution in the short term.

Number Plates We have been working with DTMR on an anti-theft number plate. Thinking innovatively, the view was that one-way screws can provide a valuable deterrent to would-be thieves and might be a suitable option for many car owners.

DTMR recently were demonstrating these one-way screws to drivers.

By way of background, our attention was drawn to the increasing numbers of stolen plates. Over the last few years the number of stolen plates has increased steadily. In 2013, 5,234 number plates were reported stolen in Queensland impacting on both the community and the person/s from whom the plates were stolen.

We had sought that the Government mandate how registration plates are attached.

DTMR advised that the problem 4 | Motor Trader August 2014

was recognised but more secure alternative measures could be implemented without introducing more red tape and increasing costs and without mandating how number plates were attached.

DTMR supported the work we are doing through our membership to try and reduce the number of stolen licence plates.

MOTOR DEALERS AND CHATTEL AUCTIONEERS ACT 2014 (THE ACT) No it is not over yet and will not be until the Act is proclaimed in about six months. This is to ensure that stakeholders have had adequate time to prepare for the changes and adjust their business practices so they are compliant with the new laws when they commence.

We are now in the phase of addressing the associated regulations.

The Chair of our Automotive Remarketing Division Mike Kennedy and I have gone through the Consultation Draft Motor Dealers and Chattel Auctioneers Regulation 2014 and the Consultation Draft Agents Financial Administration Regulation 2014. The regulations mirror the policy changes in the Act, introduce measures to reflect modern business and administration practices and reduce the red tape burden.

We took the opportunity to remind government of our longstanding policy goal for Council-approved premises for motor dealer licenses to provide consumers with surety and some protection from unscrupulous fly-by-night backyard operators.

The Office of Fair Trading is undertaking a series of Information Sessions on the new legislation and regulation across the State. I encourage Members engaged in the remarketing of vehicles to attend one of the sessions.

We have forwarded the details to Members but more details may be obtained from the Office of Fair Trading website http://www.fairtrading.qld.gov. au/about-us/latest-news/pamda-splitinformation-sessions. Note that you must register to attend.

UNFAIR CONTRACT TERMS AND SMALL BUSINESS I am in the process of completing our submission on Unfair Contract Terms and Small Business.

The Australian Consumer Law (ACL) protects individual consumers from unfair terms in standard form contracts and does not currently provide such safeguards for small businesses. We have consistently advocated that getting the balance right between protecting small businesses against unfair contract terms, while at the same time not imposing unnecessary burden on business, should be part of the ACL process.

PETROL PRICE BOARDS The issue of Petrol Price Boards continues to bubble along. At a recent Ministerial Council on Consumer Affairs (MCCA) there was an acceptance not to duplicate regulations in place in New South Wales, South Australia and parts of Western Australia, or to introduce further regulation where the ACL may address issues of concern.

The Australian Consumer and Competition Commission (ACCC) has indicated its intention to engage with industry participants with a focus on the prominence of discounted prices and the potential to mislead consumers about the price they would pay for fuel. This may involve an enforcement approach for specific instances of problematic conduct where the ACCC considers it appropriate.

The MCCA indicated an intention to revisit the issue of an information standard in light of any developments following this process.

MENTORING FOR GROWTH PROGRAM The State Government will continue the Mentoring for Growth Program which assists growing enterprises by providing access to a panel of business mentors who can give advice on meeting commercial challenges.

There are more than 300 mentors from the private sector who have participated in the program in the past year. It has been estimated that the time spent by mentors helping companies in this year has equated to $500,000 in commercial value and an untold value in knowledge and advice.

For more information on the Mentoring for Growth program or to sign up visit: www.business.qld.gov. au (http://www.business.qld.gov.au/ business/business-improvement/ business-mentoring )

GOVERNMENT TO PAY SMALL BUSINESSES ON TIME An issue during the Federal Election was the Government’s reimbursement to small businesses for services rendered. If you are doing business with the Federal Government you can be expected to be paid within 30 days.

For contracts valued up to $1 million, the new policy will automatically pay interest on correctly rendered and unpaid invoices after 30 days, down from the previous 60 days.

Previously, small businesses had to apply to receive interest for invoices that were between 30 and 60 days late.

Around 95 per cent of invoices are paid within 30 days but where the payment is late, interest will be applied at the Australian Taxation Office’s General Interest Charge.

THE ECONOMY Uncertainty about the Federal Budget continues to make dismal news.

The only positive outcome so far has been the abolition of the Carbon Tax. According to the National Australia Bank Business Survey, the business sector, whilst keeping an eye on Canberra, is not being blindsided by the politics of the budget. In June, the business sector shrugged off consumer negativity that followed the May Federal Budget and, surprisingly, business confidence increased. The expectation is for stronger activity to be sustained.

Business conditions are below trend, and do not reflect the level of business confidence. On the positive side, business conditions rose to their highest level since January - ending the downward drift. The Survey found that conditions improved for all industries, although with wide variations. Sales and profits are stronger.

Consumer confidence according to the Westpac Melbourne Institute of Consumer Sentiment rose marginally to 94.9 in July compared with 93.2 for previous month. This means that there has been no bounce back following the Federal Budget. The index is now

only 2% above that recent low in May but is 14% below the recent high in November 2013 and 10% below the average in 2013. It is a disappointing result, particularly as the Reserve Bank left the cash rate at the low of 2.5 per cent for the eleventh month in a row and signals that the rate will remain steady for a while.

At the state level, two recent reports provide encouragement about the Queensland economy. The CommSec State of States report and the Deloitte Access Business Outlook indicated that the economy was growing.

The CommSec report showed Queensland was the second best performing state on a range of measures, including economic growth, retail spending and construction work.

The Deloitte Access Economics Business Outlook forecasts that Queensland would have the fastest growing state economy over the next two years.

REPEAL OF THE CARBON TAX We welcome the repeal of the Carbon Tax after a long and tortuous journey to the guillotine. In our various submissions to the Federal Government we have consistently sought its repeal because of its contributing impact on business costs.

Many businesses absorbed it, whilst others had no alternative but to pass it on to clients or consumers.

Unpicking the Carbon Tax’s tentacles, particularly in terms of energy imposts, will be challenging but consumers and business hopefully will see a change in their power bills.

FRANCHISE CODE Members with businesses that come under the Franchise Code should note that the Federal Government is moving to give the ACCC more powers to allow it to apply fines to businesses which breach prescribed industry codes.

The Minister for Small Business Bruce Billson has introduced The Competition and Consumer Amendment (Industry Code Penalties) Bill 2014 into Parliament which allows for civil penalty provisions in a new Franchising Code of Conduct. It is the first step in the start of a new era for franchising regulation and part of a package of reforms to improve, simplify and modernise the August 2014 Motor Trader | 5

Policy/Viewpoint regulatory regime for the sector.

A breach of a civil penalty provision will expose a franchisor or franchisee to an infringement notice of $8,500 issued by the ACCC, or a pecuniary penalty of up to $51,000 imposed by the Court. The reform will give the ACCC greater flexibility in how it enforces the Franchising Code to encourage increased compliance and reduce disputes in the sector.

NEW MOTOR VEHICLE SALES I expected the end of the financial year June sales would have been positive. This did not occur! New motor vehicle sales for June continued to trend down. The Australian Bureau of Statistics Sales of New Motor Vehicles indicates that, compared with the previous month (seasonally adjusted), new car sales were 18,593, down by -0.5 per cent or 110 units. Compared with June 2013, there was a significant decline - down from 19,962, or 6.9 per cent or 1,369 units.

The respected Federated Chamber of Automotive Industries VFACTS indicated that, compared with June

2013, new motor vehicle sales in Queensland declined from 26,245 to 24,643, a fall of 1,602 units or 6.1 percent.

Equally disappointing was the year-to-date new vehicle sales. For the 2013-14 financial year, 115,036 new units were sold. This was 5,730, or 4.7 per cent, new car sales less than the 2012-13 financial year of 120,766 units.

Nationally, the results were better than those for the State of Queensland. Australian’s purchased 118,309 vehicles last month; only slightly less than the 118,758 sales recorded in June 2013.

The Australian Securities & Investments Commission (ASIC) has developed a new smartphone application that helps small business owners to undertake important checks before they enter into business transactions with other organisations.

The ‘ASIC’s Business Checks' app provides some general guidance on the steps small businesses can take to reduce the risk of being cheated by unreliable operators and fly-by-night businesses. The tool is free and easy to use and is available on ITunes and Google Play.

HELPFUL SMALL BUSINESS INFORMATION

VISIT TO MOUNT ISA

A new online dispute resolution and referral tool has been developed by the Australian Small Business Commissioner. It is a simple to use online tool to help small business to identify the most appropriate low cost dispute resolution service for their dispute. The tool is available via the Australian Small Business Commissioner’s website at www.asbc. gov.au/disputesupport.

Divisional news

A

LL DIVISIONS HAVE Annual General Meetings (AGM) scheduled across August and September. Please use this opportunity to engage with fellow members and hear what the Committee that represents your industry is working on and what their achievements have been over the past 12 months.

Skype infrastructure has been installed at MTAQ so if you are not able to make it to the AGM in person but are interested in participating remotely please contact Member Services to make arrangements to access this new facility.

A Training Package Specialist from Automotive Skills Australia (ASA) will be presenting to some industry sectors to ensure members have an opportunity to provide feedback on the units of competency that will be part of the automotive Training

6 | Motor Trader August 2014

with Ben Chesterfield and Ian Cole

Dates for Annual General Meetings: ARD APRD QFIMDD AED ERAQ QMID RVID SSCSAQ NACA TUDQ QMDC

To our Members in Mount Isa, I remind you that the General Meeting will be held on Wednesday 13th August with further meetings the following day. Some time has elapsed since we have met with Members in the North-West about their business issues and how we can deliver for them. I am looking forward to this visit very much.

I will report on the visit in the next Viewpoint.

Until then, take care.

Tue 12 Aug Mon 18 Aug (ASA not presenting to this Division) Mon 25 Aug Mon 25 Aug Wed 27 Aug Thur 28 Aug Mon 1 Sept (ASA not presenting to this Division) Tue 2 Sep Tue 2 Sep Mon 8 Sep Wed 17 Sep

Package written to the new standards.

The meetings will: · Inform members of the work being done on the Training Package. · Invite you to give feedback and

show you the various ways of giving feedback. · Invite you to participate in Reference Groups to give targeted feedback on particular units of competency. · Ask for other contacts with whom ASA should consult.

Ben Chesterfield

NACA RACQI have made the announcements of who has made it through to the selected repairer contract stage and, at the time of going to print, are in negotiation with the chosen few in order to finalise their contracts. I will have more in-depth details in my newsletter.

We recently held our Introduction to Diagnostics Trade Night and, I must say, with the progression of the motor vehicle, the numbers that attended

was a little disappointing. More about the night will also be covered in my newsletter.

Mark Brady and myself, on behalf of MTAQ, will be attending the paint and panel conference in Sydney next week.

It will be of benefit to your businesses and I trust there will be a good number of attendees from Qld. In my last news, I asked for some input from you, our members, with regard to initiatives and ideas for this wonderful industry of ours, and to date haven’t had much response, so please, if there is anything, don’t hesitate to make contact.

I’m not going into too much detail with my news this month as this will be published at the same time as the next edition of the Additional, so keep an eye for it in your mailbox.

AED The sub committee met recently to finalise the draft of the marketing brochure for the independent repairers and we will have this to discuss at the general meeting later this month. Please keep the date free and see if you can get along to what will be an informative evening, meet

the new committee members and have your say in your division.

I have been visiting quite a number of mechanical workshops over the past few weeks and in discussing the state of the industry, and as mentioned in an earlier issue, the shops who specialise appear to have more work than others. This is, maybe, a sign of things to come, so please think outside the box and maybe make some changes to keep abreast of the changing environment of the industry.

We recently held a trade night with an introduction to diagnostics. It was a great night and thanks to those who attended. It would have been good to have more there, however. I hope those of you who attended got something from it. Remember to use your membership and make contact with us if we can be of assistance at any time.

ERAQ There is not much to report from this division. We have the conference coming up next month, and from all reports it will not be before time.

I believe there has already been a great response, not only from Qld but nationally and internationally,

so if you haven’t booked in yet, make sure you do. I trust everyone will gain something from being in attendance.

Please come along to the AGM. We need input into this division - from ideas and initiatives to a more definitive way forward for this industry sector.

Ian Cole ARD Motor Dealers & Chattel Auctioneers Act 2014 To help you get ready for the introduction of the new Acts, the Office of Fair Trading is conducting a series of free information sessions throughout Qld informing businesses and industry of key changes.

Details of sessions are available on the Office of Fair Trading website.

I recommend that you log on and secure your place at a session in your area.

I would again like to highlight our Dob in a Backyarder portal on the MTAQ website.

Remember, this is for your industry and your input is vital if we are to take action against unlicensed backyard operators.

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August 2014 Motor Trader | 7

MT: What products and services does Gold Coast Diesel Specialist provide?

AC: We specialise in the service and repair of diesel fuel injection equipment - the diesel injector pump, the injectors, really anything associated with modern diesel fuel systems.

We also supply water separators.

Common-rail systems don’t like water at all. They’re not very forgiving when it comes to water in the system and a little bit of water can cause thousands of dollars of damage. What we do is take an excellent water separator, fit the separator with a warning light and buzzer system for the driver, and install it prior to the fuel filter in order to arrest the water and deal with it before it gets into the filter. We are also a distributor for Monea diesel test equipment. Monea equipment can be used on all diesel systems such as Bosch, Delphi, Siemens and Denso, and it is very user-friendly.

MT: What is your background and what made you choose the auto industry as a career?

AC: I’ve always been a hands-on person

Alan Clare

and I was quite keen on auto-electrics when I was young. There wasn’t an opening for me in that trade when I left school, however there was a position in the mechanical diesel fuel injection side of the industry. I did well at it and became a fuel injection mechanic. I worked my way up to foreman, then manager and eventually took over a Bosch workshop franchise in Durban, South Africa. We were one of the biggest shops in the city and worked on diesel repairs and the tuning up of diesel motors. However, times got pretty tough because of crime. We were held-up at gun-point one day at work and it was pretty

Alan Clare has run his business, Gold Coast Diesel Specialist, since 2001.

Concentrating on a niche sector, diesel fuel injection systems, the South African-born expat has created a successful business by earning the respect of the industry on the back of hard work and a focus on service. nasty. My wife Milly and I had two young daughters and we decided we had to move. So we came to Australia and, after a while, we bought the shell of this business. They had gone belly-up and were going to sell off the equipment but I took it over and said ‘We’ll run with this and see how we go.’

MT: Who are your customers?

AC: Most of our customers are trade someone like the average garage owner who comes across a problem that requires specialist work. He doesn’t want to throw money at it and diagnose it incorrectly so they send it to us.

We also do marine work, and work on items from earth-moving equipment down to little bobcats and even the standby generators and fire pumps that can be found in high-rise buildings.

We do work for customers across the country and as far as PNG. The best

advertising is by word-of-mouth and there is no secret to our success.

It’s just hard work and doing the right thing by people.

MT: How many staff do you have?

AC: We have three staff as well as

myself and Milly. She has worked with me since our later years in South Africa and working together works very well for us. Two of my staff are qualified mechanics and one

“THE BEST ADVERTISING

IS BY WORD-OF-MOUTH AND THERE IS NO SECRET TO OUR SUCCESS. IT’S JUST HARD WORK AND DOING THE RIGHT THING

BY PEOPLE.”

is an apprentice still going through the ropes. We’ve brought about five apprentices through since we started here. My second-in-command started out with me from school at 16 and has been with me for nine years.

MT: It must have been difficult coming to a new country and starting a business?

AC: It was very difficult but I was

confident in myself and my ability to repair diesel systems correctly. And that was what got us through. It takes hard work to establish yourself and only time cements your position. Respect in the industry is earned and we’re very happy with how things are going.

MT: What plans do you have for the future of the business?

AC: I think we are at a comfortable

size. Bigger than this and there can be a problem maintaining the quality and the service that people have become accustomed to. I’d rather maintain that. We couldn’t afford to take on extra work just because we can and then not do the job right.

After all, it takes years to build up a reputation, but just five minutes to screw it up. We keep up to date with all the developments in the diesel sector which, just like other areas of the automotive industry, is always evolving. If there is one thing that is constant, it’s change.

MT: What do you do in your spare time?

AC: Woodturning is my hobby.

It’s something I started when we moved to Australia and I have a shed at home which is kitted out with woodturning equipment. I also teach woodturning as a volunteer.

I find it very rewarding to give back to the community and share what I’ve learned over the years.

August 2014 Motor Trader | 9

Maximillion Cooper

Idris Elba sets off!

BMW on the grid in Times Square!

Times Square Gumballed!

Eve on the Morgan Aero Max!

10 | Motor Trader August 2014

Maximillion Cooper harnesses a brand born out of one man’s desire to never grow up. And 16 years into the world’s most hedonistic adventure on wheels, the businessman admits it’s probably time Australia saw a first-hand glimpse of Gumball 3000, as Motor Trader discovers.

I

“ T’S A NEAT little story”. Maximillion Cooper is evidently the master of the understatement: the tale of how a former fashion student and friend of the stars dreamt up Gumball 3000, the world’s foremost international car rally, is the essence of a modern phenomenon.

“But if people knew me and knew my background, then it is quite a natural progression for me in my life,” the 42-year-old Brit continues. “I spent the decade leading up to this idea skateboarding and streetboarding all around the world. So this hedonistic way of life has always been what I’m about. Yet once you add in the roar of an engine, some fashion, music and celebrity culture, you’re dealing with a motoring event like no other.”

Studying at the world renowned St. Martin’s College in London, Cooper’s peers included Stella McCartney and Alexander McQueen.

“I got lucky and was asked to model for Giorgio Armani,” he reveals, “and that gave me money I’d never had before. So I spent it all on learning how to race cars. It sounds crazy, but that’s all I wanted to do as a kid! So I spent five years racing - Formula 4, GT cars, F1 testing.

“By the end of the 1990s, I was part of the racing car and action sports world with lots of wealthy friends, but I was still yearning for something else. It was like I was more interested in looking at a car and appreciating its exterior than I was racing the hell out of it.”

Combining the fashion, party and sports world scenes enabled Cooper to pick up influential friends along the way – the likes of Guy Ritchie, [Jamiroquai’s] Jay Kay, Tony Hawke, Johnny Knoxville, Kylie Minogue and others. “I loved spending time with these people, so I wanted to create something that they could all be part of.”

That was in 1999 and after a successful four-day debut Gumball event that started and ended in London (via

“I SPENT THE DECADE LEADING

UP TO THIS IDEA SKATEBOARDING AND STREETBOARDING ALL AROUND THE WORLD. SO THIS HEDONISTIC WAY OF LIFE HAS ALWAYS BEEN WHAT I’M ABOUT.”

Paris, Germany and the Alps), this iconic brand was born.

Now, 15 years later, and give or take a few bumps in the road along the way, the party on wheels scales previously unimaginable heights of motoring hedonism. Having taken the brand all around Europe and across the Unites States, into major cities and beyond, Cooper’s annual shindig has made him a millionaire 50 times over.

Australia, however, remains uncharted territory for the Gumball party, something that irks those in Oz who’d love the chance to immerse themselves in this unique carnival.

Does Cooper have plans for Down Under?

“We get TV coverage in Australia, we have a distributor, and we sell the brand through clothes and that sort of thing. We also have a number of Australian celebrities who do the rally and always have done, so perhaps it is time to consider visiting. I know Dannii and Kylie are always on at me to give the Aussies a real first-hand flavour of Gumball.

“Those girls did the first ever rally, which was great, and they have been back over the years. Then we have a few skateboarders - a guy called Corbin Harris, who is now a TV presenter over in the States, but he was a pro skater for many years - and quite a few other Australians over the years. We love having Aussies on board because they all like a party!”

August 2014 Motor Trader | 11

What perhaps goes against this fine land is that it doesn’t offer the sort of diversity that Gumball 3000 has become renowned for. Because while Cooper aims to enlarge, stretch and test the brand with each passing year, it’s a premise that’s undertaken not out of showmanship, but necessity.

“People expect more each year – spectators, drivers, sponsors, everyone. And they expect diversity, because this is a global brand with global partners, so we want to make each stage different and unique. If you take this year’s rally for example, you’re in North Carolina one minute and 48 hours later you’re driving through Scotland. I don’t think you can get that separation in Australia, but I know we’ve got to be creative and incorporate it at some point because the county

“PEOPLE EXPECT MORE EACH YEAR – SPECTATORS, DRIVERS, SPONSORS, EVERYONE. AND THEY EXPECT DIVERSITY, BECAUSE THIS IS A GLOBAL BRAND WITH GLOBAL PARTNERS, SO WE WANT TO MAKE EACH STAGE DIFFERENT AND UNIQUE.”

is just too immense to miss out! Perhaps flying the cars in mid-rally would be the answer, and finishing up in Oz.” And with that, Cooper floats away on a thread of ambition. Chatting to himself, he offers, “we could maybe start it in South-East Asia from Bangkok and drive down to Singapore and fly from there. That wouldn’t be quite as far as trying to get there from Europe.”

Interrupting his flow, we bring him back into the moment, and reference this year’s Miami to Ibiza race.

With stops in London and Barcelona too, it has been a course as exotic and eclectic as the motors themselves.

“For this year, it was all about cross-sections. I was in a little Fiat Abarth 500, a retuned one, and was also asked by Fiat to drive a specially built new motor which had been launched on the rally this year. It’s called a Fiat 695 Biposto, and it hammers on at 240km per hour. So that was cool.

“And we had that next to all kinds of cars. One of our Middle East entrants drove the Tumbler from Batman, which was ridiculous! It was incredible - it doesn’t fly, but it looks like it should! We had a LaFerrari, the new Ferrari supercar; the boys from Dirty Sanchez were doing it again and brought an old Mark 2 Golf – so, again, with Gumball, we’ve just got real diversity, a proper cross-section.

It’s all about supercars, luxury cars, crazy cars.”

Not only that, but this year’s Gumball’s conclusion in Ibiza also provided the location for Cooper to marry longterm girlfriend, rapper and musician Eve. Yet for someone always looking to ‘go one better’, quite how the showman can top that little event remains to be seen.

“I can’t even think about the next one yet,” he laughs.

“The criteria is all about trying to be ground-breaking, taking it somewhere you thought wasn’t possible, or maybe a country that only a few of the 200-odd participants have been to. Sometimes you think all the original ideas have been done, but trust me, there will always be another!”

Whichever road he decides to take, the Gumball juggernaut seems to have reached a point where its popularity will never yield. Cooper talks excitedly about

Copenhagen grid!

Maximillion and Eve

12 | Motor Trader August 2014

GUMBALL: 15 YEARS OF STARS AND THEIR CARS

Through Death Valley

Gumball family in Times Square

“THE CRITERIA IS ALL ABOUT TRYING TO BE GROUND-BREAKING, TAKING IT SOMEWHERE YOU THOUGHT WASN’T POSSIBLE, OR MAYBE A COUNTRY THAT ONLY A FEW OF THE 200-ODD PARTICIPANTS HAVE BEEN TO.” the “expansion of the brand” (including clothing and energy drink lines) as well as future rallies, plus a Warner Brothersfunded full-length feature film.

“It’s a fully scripted, acted movie, and should keep us in driving gloves for the next decade at least. It’ll be like a cross between Oceans 11 and Wolf of Wall Street. It’s got Hollywood behind it and it is very exciting. It shows just how far we’ve come after all these years.”

Travis Barker and Swizz Beats!

CREATED IN 1999, the Gumball 3000 Rally has gained something of a notorious reputation.

This is, no doubt, partly due to the fact a very fat wallet indeed is required to take part (for this year's rally, participants had to cough up nearly $75,000).

There have also been a number of incidents over the years that have added to the Rally's reputation.

Though strictly speaking not a 'race' - the terms and conditions of entry strictly forbid competition - it has proved difficult over the years for participants to keep their cool driving their supercars. On the 2003 Rally, while running through Texas, a Koenigsegg CC85 allegedly received a speeding ticket for clocking 242mph; and in 2007, 70 cars were apparently stopped and their drivers fined by German authorities.

Sadly, 2007 also saw two fatalities when a Rally participant was involved in an accident with another car which was not part of the event.

However, though the Rally was suspended that year, it continued the following year and has grown ever since.

And it is its exclusivity, and the rare and expensive cars that are driven, that has made the Rally such an 'event'.

This year, London authorities closed down Regents Street - one of the British capital's busiest roads located smack in the heart of the

city - so that thousands of onlookers could come and gawp in amazement at the cars.

And there has been an amazing selection of cars to gawp at over the years - a selection that has made the Rally a spectacle almost like no other. More than 100 of the most jaw-droppingly expensive motors took part this year - from McLarens to Lamborghinis, Ferraris and Bentleys, the street-legal Rebellion R2K and even a four-wheel film star in the form of the Tumbler vehicle from the most recent Batman films.

And over the years the participants have included names almost as exotic to the general punter as the cars. An assortment of music, film and TV stars have spun a wheel or two on the rally, including Quentin Tarantino, Darryl Hannah, Adrien Brody, Jonny Knoxville, David Hasselhoff, Danni and Kylie Minogue, and a host of rap stars including Snoop Dogg and Xzibit . . . the list goes on and on. New Zealander Kim Dotcom, notorious in his own right, has twice taken part in the Rally.

However, though the Gumball Rally started as, and still is, an event for the rich to enjoy themselves, there is an altruistic side to the event too. The Gumball 3000 Foundation - a foundation which benefits underprivileged youth through various recreational and educational projects - receives funds raised by Rally participants.

August 2014 Motor Trader | 13

News

CONVENTION MARKS BRIGHT FUTURE FOR NEW AADA H UNDREDS OF DELEGATES from around the country attended the 2014 Australian Automotive Dealer Association (AADA) National Convention at the beginning of July.

Held at the RACV Royal Pines Resort on the Gold Coast, the threeday event was the first convention to be held since the reorganisation of AADA as an association run by dealers, for dealers, and the convention schedule was packed with workshops and sessions specially designed to engage delegates and offer insight and information regarding the issues affecting the industry.

The program tackled issues such as warranty claim management, Australian consumer law, Australian tax office compliance, effective business strategies and also included dealership health checks and workshops on corporate governance.

“It was probably the most

significant convention in terms of content that we have ever put on,” said AADA CEO, Patrick Tessier.

“The reason that was the case is because the new Association works in the interests of dealers and only in the interests of dealers and we were able to craft a program that was really about the issues that matter in this market today.”

The involvement in the convention, for the first time, of both the Federal Chamber of Automotive Industries (FCAI) and the Australian Finance Conference (AFC) was, said Mr Tessier, a significant development.

“What that showed dealers is that

“IT WAS PROBABLY

THE MOST SIGNIFICANT CONVENTION IN TERMS OF CONTENT THAT WE HAVE EVER PUT ON.”

AADA CEO, Patrick Tessier

14 | Motor Trader August 2014

our goal to create a dialogue between the FCAI and AADA is very positive for the future. The AFC represents the finance companies in Australia and they are also keen to find a mechanism through which the AADA and AFC can communicate together about policy matters.

“What these two developments show is that AADA is working very hard in the areas that matter to dealers.”

Guests at the convention included Jim Phillips from NADA University and representatives from Fenabrave, the Brazilian National Federation of Vehicle Distributors.

Guest speakers included Veronica Johns, CEO of Fiat Chrysler Australia, and former Prime Minister John Howard who spoke on the interaction between business associations and government and the good advocacy work AADA has been doing on behalf of its members.

“In your industry’s relationship

AADA Chairman, Ian Field

“MOTOR DEALERS

HAVE NEVER FACED SO MANY CHALLENGES BUT WE NOW HAVE AN ORGANISATION WITH ONLY ONE PURPOSE – TO LOOK AFTER MOTOR DEALERS.”

with government, it is very important that you try as hard as possible to put yourselves in the position of the government,” said Mr Howard.

“To understand the government’s position, and to understand the

The AADA board during a Q&A session

economics of the government’s position as well as the political situation is very important to the presentation of your case.”

The strong relationship between AADA and the National Automobile Dealers Association (NADA) of America was also confirmed with the announcement that the highly regarded NADA University courses are to be made available to AADA members from next year.

“We are very excited about being able to provide a mechanism through which the dealers of Australia will be able to utilise the services of the NADA in developing the skills of their frontline staff,” said Mr Tessier. “We believe we need to be able to provide dealers the resources with which they can improve the skills of their staff, and we have been able to do that with this arrangement.

In February 2015, when we launch the NADA University program, dealers will see it is a very significant step forward.”

Reinforcing the relationship with NADA, its Chairman, Forrest McConnell, sent a video message of support - a message that highlighted the benefits a strong Association provides its members.

And it was a message reiterated by AADA Chairman Ian Field.

“Let there be no doubt that the sleeping giant is awake and motor dealers are in control of the agenda,” he said. “Motor dealers have never faced so many challenges but we now have an organisation with only one purpose – to look after motor dealers.”

Former Prime Minister, John Howard

GOVERNMENT INCREASES OPPORTUNITIES FOR BUSINESSES TO ATTEND PAMDA SPLIT INFORMATION SESSIONS

THE REDUCTION OF bureaucratic red tape has been high on the Queensland Government’s agenda, and one of the decisions made to help implement that policy has been to replace the current Property Agents and Motor Dealers Act 2000 (PAMDA) with four industry-specific pieces of legislation.

The new legislation includes the Motor Dealers and Chattel Auctioneers Act 2014.

The Office of Fair Trading (OFT) is conducting a series of free information sessions throughout Queensland, informing businesses and industry on the key changes to business activities, licence categories, forms and compliance.

The OFT has received an overwhelming response to these PAMDA Split information sessions from businesses - especially in Cairns, Sunshine Coast, Brisbane North, Brisbane South, Gold Coast and Toowoomba - and have released more tickets at all locations while adding information sessions in Cairns, Brisbane North and Brisbane South.

For those unable to attend one of the sessions for their industry, or if the preferred session is already fully booked, there are options through which the information can be accessed.

Combined sessions being held will give an overview of the impacts to all industries affected by the PAMDA split - handouts and flyers for all of the industries will be available.

Also, an information session will be filmed and uploaded to the Office of Fair Trading YouTube channel in September.

Once the formal series of information sessions has concluded, the Managers at each of the locations will determine if the local demand warrants further sessions within their region.

For more details and updates on implementation, refer to the website www.fairtrading.qld.gov.au

August 2014 Motor Trader | 15

MAKE: PONTIAC MODEL: 1969 FIREBIRD CONVERTIBLE ENGINE: CHEV 400 SMALL BLOCK OWNER: WAYNE DELAFORCE OWNER SINCE: 2013

A

FEW MONTHS AGO, MT met up with Dave Delaforce from Park Ridge Wreckers to photograph, and chat about, his slice of classic American muscle car history – a Chevy 1969 C10 Pick-Up truck.

As it turned out, the C10 was the tip of a proverbial automobile iceberg. For Dave and son Wayne have a thirst for American cars of a certain vintage that has seen them make a number of trips to the USA over the years to buy vehicles and build up an enviable collection of American automotive history.

Since 2005 they’ve completed several journeys, including one in April this year, and collected 20 vehicles from around that nation - including a Ford Thunderbird, a Chevy Nova, a Chevy Impala and a 57 Chevy pick-up.

This fabulous-looking 1969 Firebird was bought on one of those journeys - a mission to California after Wayne spotted it on the Craigslist website.

“I bought it in Corona, in Los Angeles” says Wayne.

“Everything about the car was really good, although for some reason they don’t seem to think of everything over there. For instance, I’ve had to put seatbelts in and I drive it slowly out of the yard because the extractors hit the ground.

They can make cars that look good but not everything works.

“I don’t think they do road-worthies like we do,” he adds.

“So I put new headlights in, new wheels, seatbelts and put a stereo in it. The seats, however, were all new when I got it – I really didn’t need to do anything major on the interior.

“I’ve got some new extractors coming too – some that

16 | Motor Trader August 2014

are going to sit up high and not scrape anywhere.”

If these irritating little problems are the norm with vintage American cars, then why buy them? Especially, as MT discovers, if your interest in cars was prompted by vehicles of a very different style – in Wayne’s case, late-model, turbo-charged Japanese cars.

Wayne smiles and points an accusing finger at his dad.

“He got an Impala,” he says. “I could get eight guys in it - and another four in the boot if I needed to! And we could all just go for a cruise.”

It has to be admitted - cruising the streets, with all your mates, in a big muscle car is kinda cool.

But why not Australian vehicles? There are big, powerful, classic Fords and Holdens out there to be had.

Wayne points out that, thanks to the amazing popularity of the classic car market in the USA, it’s simply easier and cheaper to buy and run American cars.

“I just never really got into Australian cars,” he says.

“Plus, I like the fact that with American cars, if you need a part you can just buy it off the shelf over there.”

Not that there is too much that Wayne needs to do to the Firebird. Outside of those few minor issues, it’s just about ready to be taken to the shows and motoring events the father and son team enjoy attending.

“I haven’t had a chance to show it yet but I will,” says Wayne.

“I just have to get it up to my standard first.

“There are a few bits of paint to touch-up and there’s a rear spoiler that needs to go back on – when the tow truck picked it up for me its cable hit the spoiler.

“There are a few little things like that to do.”

Buying cars in the US is something that Wayne clearly enjoys doing. And it’s not just because of the cars themselves.

“A lot of people think Americans are rude but I find that they’re very inviting,” he says. “Sometimes I’ll be in a shop and people pick up on my accent and they ask what I’m doing there. When they hear of my interest in cars they’ll tell me about their ‘buddy’ who has this car or that car. Then I’ll be invited into their homes to take a look.

“Often the cars aren’t what I’m looking for, but the fact is that these people have invited me into their homes and they’re really friendly.”

As for the Firebird, shipped over from California in 2013, it is an unusual model to see on Australian streets.

“It is quite rare,” says Wayne. “Those that are around, and there aren’t many, are mostly hard-tops, not convertibles like this one.

“And everybody seems to love it when I’m driving it around,” he adds with a grin. “If the police pull me over it’s

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.

because they want to have a look at it! Everybody likes it - young or old.”

Wayne certainly does and, just like his dad, he has now well and truly caught the American muscle car bug.

And with the ’57 Chevy Pick-Up and the Chevy Nova now recently arrived from the US, his collection just got a little bit more special.

And it’s not likely to stop there.

“It’s beyond a hobby now,” says Wayne with a broad smile.

“Now, it’s an addiction.”

August 2014 Motor Trader | 17

give yourself an Technical Information Service Your MTA Queensland membership gives you access to a vast technical library.

Industrial Relations As a member of MTA Queensland you have access to industry-specific industrial relations advice and representation.

Save with our Corporate Partners

The Capricorn Society is the largest independent automotive cooperative in Australia. Members benefit through group purchasing to secure price advantage.

Consumer Complaints MTA Queensland will assist member businesses and facilitate in the event of consumer complaints.

Legal Advice Members can access professional legal assistance as part of their membership of MTA Queensland.

Industry Awareness Members receive regular industry specific publications to keep you abreast of changes, legislative requirements, developments and initiatives in your industry.

• The MTA Queensland logo provides an element of differentiation between you and other businesses and may just form the key point of difference for a potential customer.

Dun and Bradstreet is the nation’s foremost credit control and debt collection agency. Members are eligible for substantial savings on annual subscriptions.

The Commonwealth Bank offers members some of the lowest EFTPOS charges in the country. Members have saved thousands with CBA.

MTAA Superannuation is the industry’s superfund. Our superannuation partner has over 200,000 members who enjoy excellent service and returns.

• Being a Member gives you input in the future productivity and profitability of your industry and the opportunity to positively influence it’s future through divisional and regional committees.

Staples is the leading supplier of a complete range of office consumables, bulk stationery and janitorial supplies.

MTA Queensland, Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 | 07 3237 8777 | info@mtaq.com.au | www.mtaq.com.au

20120064

• MTA Queensland actively lobbies Governments with the best interest of our members to reduce red tape and streamline process for business owners.

ESSENTIALS Contents 19 Training matters 24 Members matters 26 Member profiles

AUTO STOP NEIL’S AUTOMOTIVE SERVICING TOOWOOMBA TOTAL MECHANICAL

28 Industrial relations

Justin Simpson with Dale Duffy

D

ALE DUFFY, A 16-year-old MIT school-based apprentice from St Edmund's College in Ipswich will be flying to Perth in September to take part in the Worldskills Australia National Competition.

The competition, which takes place from the 18th-20th September at the Perth Convention and Exhibition Centre will pit Dale against other gifted school-based apprentices from around the country in the Vocational Education and Training in Schools (VETiS) category competition.

It's an achievement in itself to reach the final but Dale is hopeful he can perform well on the national stage.

And he should be confident. Having spent much of his life around cars assisting in his father's workshop, as well as working in the shop of engine building and development specialist Justin Simpson at Horsepower Solutions, Dale has racked up a good deal of experience already.

And that experience will be bolstered by some extra training being offered by Dale's support team, including his school teacher Nigel

Raddie, his boss Justin, and his MIT trainer James Dixon, each of whom will go through practical exercises with Dale to prep him for the big day.

“I'm working on the electrical side with my teacher, the measuring tool equipment side with Justin and I'm doing the rest of the competition courses with James,” said Dale.

“I'm feeling pretty confident,” Justin is hopeful his young charge can come through the test successfully.

“I don't think it's going to be a walk in the park at that level but I'm hopeful he'll go well and I think he will.”

“We've laid some groundwork regarding what we want to achieve,” added James. "I will be working with Dale on the cooling system, braking system, vehicle body and underbody and we have already covered some theory work.

“When Dale comes in to the MIT workshop we'll set up some physical, practical projects that he can work on and which will simulate the different criteria he has to meet.

“I think he will do very well.”

We wish Dale the best of luck.

August 2014 Motor Trader | 19

E S S E N T I A L S

MEMBERS

M E M B E R S

DALE READY TO TEST HIS SKILLS AGAINST THE NATION'S BEST

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

Training matters

OUTBACK RALLY IS THE T J

ESSE ADAMS, THE 4th-year MIT apprentice from Browns Autobahn in Nambour, has returned from the Qld Great Endeavour Rally in one piece.

Jesse took out Motor Trader's Endeavour Rally competition last month, the prize for which was to become a member of the Brisbane Motor Auctions (BMA) Rally Mobile Workshop crew and have the opportunity to learn and have fun while on the trip of a lifetime.

And so it proved to be, as Motor Trader found out when we caught up with Jesse on his return.

Partnered with lead mechanic Nigel Hunt from BMA, the eight-day epic trip was filled with late nights and plenty of laughs. But if that sounds like the recipe for a holiday, well, this was strictly a working vacation for Jesse, tasked as he was to assist Nigel in helping the Rally participants keep their cars running and on the road.

And, after leaving with the Rally from Warwick on the morning of July 11, it didn't take long for Jesse to start earning his keep - working on his first four-wheel 'patient' just a few miles in.

“The plan was we would cruise along in the middle of the pack,” he said. “That lasted a couple of hours before we came across the first breakdown. It was an easy fix - loss of power to the fuel pump - but there were other problems that day which meant we were late getting to camp.”

In fact, being 'late' into camp was a common occurence.

“The end of our days did vary,” Jesse said with a grin. “We got up each morning at about 4.30am and a couple of nights we rolled into camp about 7pm, a couple after 11pm, and one of them was about 1.30am.

“And that was only when we arrived at camp, so doesn’t include any work 20 | Motor Trader August 2014

The Mobile Workshop Team's truck ran into a bit of strife itself, blowing a head gasket with just two days to go

“I WOULDN'T CHANGE

ANYTHING. GETTING OUT THERE AMONGST GOOD PEOPLE - IT WAS AN EXPERIENCE I'D LOVE TO DO AGAIN.”

we did when we got there. We didn’t go to bed before about midnight.”

When Jesse says 'bed', that shouldn't be taken literally, of course.

The Rally doesn't stop at five-star accommodation so there's no TV, no warm beds, no mini-bar (although it seems plenty of people had brought 'liquid refreshments' with them).

Instead, Jesse slept under the stars - just a swag, a blanket and a sleeping bag to keep him from the elements.

“It did get quite cold,” he said.

“Down to minus 6 a couple of times.

But it was fine.”

Back on the road, there was more serious repair work to be done than just the odd fuel pump, and on at least one occasion, luck was on the workshop team's side when it came to a tricky repair job.

“One of the cars broke a suspension bolt and it became a bit of an ordeal to find a replacement part,” said Jesse.

“We were at a Station in the middle

of nowhere and, amazingly, the owner just happened to have the same car, wrecked and decommissioned. It was the only car there! So, we managed to get the parts off that and fix things up.”

In between fixing cars, Jesse was able to enjoy some of the amazing landscape on the 4,000km route.

“It had a little bit of everything,” he said. "At one point we came by a dried-up lake and there was absolutely nothing there. There was nothing for hundreds of kilometres and you could almost see the curvature of the earth.

“But then we would go from that environment into dense bushland and be driving over earth that went from rocks to sand to mud. It was incredible.”

That incredible outback landscape was not the only thing to which Jesse was exposed, thanks to a longstanding Rally tradition - 'The Stonehenge Gift'.

'The Stonehenge Gift' is a late-night naked foot race - an event in which rally

Paul Conquest (car 472), Jaimee Wicks, Scott Bilby (car 472) and Jesse

Jesse with Scott Bilby

Nigel Hunt and Jesse pack up their gear ready for another day

The Australian Army took part in the Rally this year

debutants are encouraged to participate and where everything, especially a man's pride, is left open to friendly ridicule.

And although the winner of this year's nude street race was backed to the tune of $1000 by Brisbane Motor Auctions Jesse, showing once again that he has a sensible head on his shoulders, did not take part.

After six days of toil the working part of the trip came to an abrupt end for Jesse after the Mobile Workshop Team truck blew a head gasket.

With the truck unrepairable, Jesse hitched a two-day ride to the finish line at Bundaberg with Rally participants Paul Conquest and Scott Bilby - striking up a friendship with the pair in the process.

And though, with the workshop truck out of action, the reason for his involvement in the Rally was gone those last two days highlighted the real spirit behind an event such as the Endeavour Rally.

As much as it is about fundraising and volunteering for a great cause, the chance to strike up new relationships while sharing in the spirit of the Rally seems to be just as important, and that is something that Jesse wants to continue to experience.

“I made some great mates,” he said.

“Mike Kennedy from BMA and his friends for example. We would have a few drinks in the evening and talk about the day's events and that was great. They were a great bunch of people to be out there with.

“Paul and Scott made the last two days unforgettable fun and I have to thank Nigel too, for all he did.

“This was a great learning experience - getting out there amongst good people. I didn’t really know this sort of stuff happened.

“I'd definitely like to come back, and I’ve already dropped the hint to Nigel about being part of the team again. It was the most fantastic experience.”

Jamie and Michelle Lawson - the team behind the Rally

THE QLD GREAT Endeavour Rally, and it's sister event in NSW, are fun events - a few days of bush-bashing freedom for hardy participants looking for a thrilling adventure.

But for some people, the Endeavour Rallies are more than an outback holiday. For them it is a way of life. One of those people is Jamie Lawson.

He is the 'Road Boss', the man responsible for just about everything to do with the logistical side of the rally - the man who decides exactly what route the rally will take, and who ensures everyone stays safe and things run smoothly.

These days it is his full-time job, but the 42-year-old has been involved with the event since he was a teenager.

"I organise, coordinate, plot, plan and put the whole event together," said Jamie.

"My father, Alan, started the rally in 1988 and I've been involved since then. He was the Road Boss for the first 10 years, then we worked together for a few years and in 1998 I took over."

With wife Michelle, Jamie spends the year planning the rallies, mapping their routes, checking safety procedures, and tuning, refining and developing new ideas to ensure that the event is a safe and fun time for the participants.

“We put them through some very challenging environments and you have to be sensible about it. We take it very seriously,” he said. “The nature of the event is fun and participants come on the event as a kind of holiday. They're hard workers leading stressful lives, and they come on the Rally in part to get away from that. Our job is to give them the adventure of a lifetime where they can leave the worrying to us.”

While Jamie and Michelle work on the event all year round, during the rally itself they lean heavily on their volunteer team.

“We are very proud of them,” said Jamie.

“Some have been volunteering with us for more than 20 years. They are dedicated, the best at what they do and they go that extra mile for me."

Though the Qld Great Endeavour Rally is now over, there's no rest for Jamie and Michelle.

The NSW Rally kicks off in October and preparations are already underway for next year's events.

The open road, or should that be dusty track, beckons.

August 2014 Motor Trader | 21

E S S E N T I A L S

TRIP OF A LIFETIME

M E M B E R S

A LIFETIME ENDEAVOUR FOR RALLY 'ROAD BOSS'

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

MIT TRAINER PROFILE

Training matters

NEW MIT TRAINING FOCUSES ON EMERGING TECHNOLOGIES T HE AUTOMOTIVE INDUSTRY is constantly evolving. That fact is evident in the hybrid and electric technology now being incorporated into new vehicles.

Every major manufacturer is involved in producing or developing these types of vehicles and it has never been more important for technicians and tradespeople to learn about these advances.

MTA Institute of Technology (MIT) recognises this and has developed a training course tailored to educate and upskill experienced tradespeople.

The post-trade electronics course had its first students in June.

Incorporating four modules, the course covers the use and maintenance of automotive electrical test equipment; how to carry out diagnostic procedures and to diagnose

STEVE HUDSPITH

correctly; and how to service and maintain battery electric vehicles.

The course was designed in response to inquiries by the industry, and was funded by the State government via the Regional Workforce Development Initiative.

Organised through the Department of Education, Training and Employment (DETE) and its Field Officer for the Southeast region, Lisa McBrien, the course aims to support small and medium size businesses to grow capacity and capability within their workforce.

“It was employer driven,” said Mrs McBrien. “The message from industry was that they needed post-trade training in this specific area and the idea was to identify small to medium size enterprises that had tradespeople who had not been

upskilled over the years.

“Field officers engaged with those businesses asking what they were looking for to increase their business, to take on apprentices or trainees, and be up to date with the latest technology.”

“We also wanted tradespeople to take the course so they could create a learning environment in their workshops. We want apprentices to see employers in learning environments - to see that there is upskilling after an apprenticeship.”

“Essentially, it is furthering education,” said Anthony Bonaccorso, Business Development Manager for MIT. “Typically, most people will do their apprenticeship and may then attend a course here or there, but they don’t really continue their education in the sense of

Brisbane where I was very fortunate to specialise in European brands like Audi, Lotus, Bentley and Lamborghini. I then found myself moving into heavy vehicle mechanics working for Western Star Trucks and Man.

Keeping training relevant to the industry and keeping students interested in what they are learning.

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

It is such a broad industry; there are so many future career options to explore if you are motivated.

I started working for MIT in 2008.

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

What geographical area do you service?

South west of Brisbane.

Training in light and heavy vehicle qualifications.

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

What is your background in the automotive industry?

Signing up a new apprentice and getting to see them develop into a great mechanic.

I completed my apprenticeship working for Motorama before moving to Audi

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

What is your specialised area?

22 | Motor Trader August 2014

Why should someone consider a career in the automotive industry?

Listen and don’t be afraid to ask questions.

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

Fabricating and modifying off-road vehicles, building my own project vehicles and competing in off-road competitions.

Steven Tong with MIT trainer James Dixon

“STEVEN HAS

ONLY BEEN IN THE TRADE FOR A SHORT TIME BUT HE HAS A DEDICATION AND A HUNGER TO LEARN NEW SKILLS.”

post-apprenticeship training.

“With this course, they get five full days here at MIT and our trainer, Paul Tugwell, will conduct post-course visits in their workplace to check the skills they’ve acquired are now being practiced in the workplace.”

Greg Rawlins, proprietor of Transport Electrical Services in Brisbane, a tradesman for 35 years and one of the course’s attendees, saw the need for the specialised training and brought it to Mrs McBrien’s attention.

“Lisa took it from that point, and what came out of that was this advanced training and diagnostic course.

“And it has been very interesting,” said Mr Rawlins. “The first part of the course has been the theory and baseline of diagnostics, and that is very important. The better we can diagnose a problem, the better we can understand the faults and the better chance we have of repairing something correctly and making a financially sound decision for the business and the customer. Misdiagnosis costs both parties a lot of money.”

Chosen specifically to run the lessons, MIT trainer Paul Tugwell spent some months preparing and designing the course.

“My passion has always been electronics,” he said. “And my passion now is hybrid electric cars. And there is a need for people in the industry to upgrade their skills.

“15 years ago, a course like this might not have been required, but now, because the vehicles are so highly technical, we have to know how to diagnose, and how to use the right equipment to diagnose problems.

“Whether we like it or not there are going to be more and more hybrid and electric cars on the road and people have to train and upskill to work on these vehicles. After all, when a car comes into a workshop, businesses should be able to work on it.”

For Mr Rawlins, the course was challenging but necessary and something that should be continued and widened.

“Ours is an evolving and dynamic industry,” he said. “There is always more to learn. The kind of knowledge needed is far broader and more technical than it has ever been, and it’s changing every year – every month.

“You can become complacent and it’s good to challenge yourself with something different.”

STEVEN TONG, A 34-year-old first year apprentice with Kmart Tyre and Auto in Birkdale, is the Student of the Month winner for July.

Though only recently coming into the trade, Steven’s MIT trainer, James Dixon, has been very impressed with his work, singling out his commitment to the job for special mention.

“Steven has only been in the trade for a short time but he has a dedication and a hunger to learn new skills,” said James. “His books are always well-presented, full of detail and a pleasure to mark.”

Working at Kmart has enabled Steven to work on a variety of jobs throughout the workshop.

“In the first year I have done work replacing clutches, timing belts, shocks and struts and even engine replacements,” he said. “And I have worked on wheel alignments and tyre fitting and balancing.”

Steven’s hard work ethic has also seen him picked out by Kmart management for praise, and has seen him sent on a sales seminar, and become one of the few apprentices selling to customers and reporting on their vehicles.

“During training Steven is always asking questions about the subject he is learning and finding different ways to improve productivity out in the workshop,” said James. “For a first year apprentice, he is well ahead of his years.”

August 2014 Motor Trader | 23

E S S E N T I A L S

Paul Tugwell with the course students

M E M B E R S

STEVEN TONG WINS STUDENT OF THE MONTH AWARD FOR JULY

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

Member matters

QUEENSLAND FRANCHISE GROUP AN AUTO LEADER “ Q “

UALITY OF SERVICE and customer satisfaction” – words that any business would recognise as essential elements to running a successful and profitable enterprise.

It’s easier to say than do, of course, but automotive servicing company Auto Leaders is forging a successful path for itself by having those elements at the heart of its business.

The franchise automotive servicing company bills itself as ‘the dealer alternative’, offering fixed-price servicing to the manufacturer’s logbook requirements without voiding the statutory warranty. They also guarantee to beat any written dealer quote on a logbook service by at least 10 per cent – something they can offer by virtue of a cheaper labour rate and the use of competitively priced, quality parts that still meet the standards manufacturers require for warranty purposes.

That, in itself, sounds like a great deal and reason enough to explain the company’s success but, as with many success stories, that success is as much down to the quality of customer service 24 | Motor Trader August 2014

WE ARE PRIMARILY A SERVICING GROUP THAT WILL CARRY OUT MINOR MECHANICAL REPAIRS… BUT REALLY THIS BUSINESS IS ABOUT CUSTOMER SERVICE.”

as it is to the products and services the customer is actually purchasing.

“We are primarily a servicing group that will carry out minor mechanical repairs,” says Bob Day, the founder and driving force behind Auto Leaders.

“But really this business is about customer service. The important aspect of what we do is satisfying the customer and guaranteeing that they want to come back.”

It’s a solid business truth that has enabled Bob to expand the business since its creation in 1997 to now include eight shops across the region – four on the Gold Coast, two in Brisbane and two on the Sunshine Coast.

And keeping that high standard of customer service is a strategy the group works hard at delivering on a consistent basis.

“We’ve got a system and a standard that everyone in our group works to,” says Bob. “The biggest thing for us is guaranteeing that what we tell the customer is what they will get.

They’re told how much a job is going to cost, and when they come back, that’s what it will be.

“And if they have a problem with their car and we can’t help them, then we guide them to the right people we know can do the job.”

That probably doesn’t happen too often as the mix of skills across the 80 employees in the group, along with the communication that the group structure enables, ensures a wide range of issues can be handled.

“We work on all cars and models,” says Bob. “Most of the guys in the group have been trained either in an independent workshop or a dealership, so we’ve got quite a number of factory-trained mechanics who have been trained in different

Auto Leaders founder, Bob Day

makes and models.

“And it is very beneficial being part of a group like this because we communicate with each other regarding technical information.”

It has been an interesting career journey for Bob Day. Trained as a fitter and turner, the Sydneysider made his way to the Gold Coast in 1980.

Describing himself as a ‘capitalist at heart’, he started his own concrete trucking business before joining the Ultra Tune group as a franchisee in 1984, eventually rising to become a Board member of the company.

Leaving in 1997, Bob started Auto Leaders from his own shop on the Gold Coast and always had the intention of building the group into a franchised servicing powerhouse.

But rather than expanding for the sake of expansion, he has used his experience to create steady growth, ensuring each store and franchisee has the best chance of success.

“The intention was to build up as quick as I could,” says Bob. “But we’re not in a hurry to just take on a centre for the sake of it. It’s more important to get the right candidate in the right location and that doesn’t come easily, especially in today’s economic climate.

“Someone running an Auto Leaders business does not have to be a mechanic. It would be vital for

Bob Day with Duncan Pearce, proprietor of Auto Leaders Robina

them to have skilled technical people behind them but the main criterion is customer service.

“Our products are our different types of services, so the capacity for someone to explain them to customers, and to then recognise the customer’s needs is critical.”

The expansion of Auto Leaders is expected to continue, with Bob always open to opportunities and enquiries.

And with ‘fixed fee’ franchising costs (rather than the norm of fees based on turnover which, says Bob, ‘penalises a franchisee for being successful’), heavy investment in advertising, and strong franchisee support, Auto Leaders steady growth is even easier to explain.

“The ideal for me would be to get another five or six centres in Brisbane,” says Bob. “But Brisbane is one of the hardest places to get the right location with the right candidate together.

“We would probably look at an established workshop as a better bet.

We can set up the systems, guarantee the quality and the customer service and show them how they are going to make money.

“If I can get someone to follow our system and not compromise it, I can almost guarantee they’ll be successful, because that is what I did and that’s what the guys in the group do - we know the system works.”

WEEK CELEBRATES THE OUTSTANDING CONTRIBUTION SMALL BUSINESS MAKES TO OUR ECONOMY . . . ”

THE SECOND ANNUAL Queensland Small Business Week will run from 1-6 September with events across the state aimed at supporting small businesses.

“Queensland Small Business Week celebrates the outstanding contribution small business makes to our economy and local communities through job creation,” said Jann Stuckey, Minister for Tourism, Major Events, Small Business and the Commonwealth Games, at the event announcement in January.

“Small businesses employ more than one million Queenslanders, which represents more than 50 per cent of all private sector workers.

“Small Business Week is a chance to celebrate this contribution and remind Queenslanders of the importance of buying locally.”

A number of events will be held - from information sessions, seminars and workshops - offering business owners a chance to learn about the latest small business trends; to have the opportunity to network with peers; to gain new ideas and inspiration, and much more.

Ms Stuckey said the 2014 Queensland Small Business Week would be even more successful than last year’s event.

“We aim to have even more events this year in every corner of the state and I encourage all Queenslanders to take part in some way,” she said.

The Department of Tourism, Major Events, Small Business and the Commonwealth Games will coordinate the week, with individual events being organised by local Chambers of Commerce and business groups, amongst others.

For further information, visit the Government’s Business and Industry Portal www.business.qld.gov.au

August 2014 Motor Trader | 25

E S S E N T I A L S

“SMALL BUSINESS

M E M B E R S

QLD SMALL BUSINESS WEEK TO CELEBRATE LOCAL ENTERPRISES

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

Member profiles

Auto Stop

Neil’s Automotive Servicing Location: 3/20 Tradelink Road, Hillcrest

Type of business: Mechanical Number of employees: 4 Trading since: 2006 MTAQ member since: 2006

Toowoomba Total Mechanical

26 | Motor Trader August 2014

How did you hear about the Motor Trades Association of Queensland (MTAQ)?

What has been your proudest business achievement to date?

Trade experience – working in other workshops which are members.

Just to have remained in business for eight years and still have many of the same faces coming in now that were here in our first year.

How has being an MTAQ member benefited your business?

MTAQ has been great support when we have needed information on staff employment, wages etc. and also good when needing technical info on a particular vehicle.

What is the best thing about working in your industry?

You can make your own success if you work at it. Keeping your customers happy and seeing them and their children return years on.

What is the best thing about working in your industry?

Cannot remember that far back.

Probably my father!

Seeing customers’ satisfaction when you have repaired their cars.

How has being an MTAQ member benefited your business?

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

It has been a great benefit in payroll issues, tech advice and customer issues.

What has been your proudest business achievement to date?

Purchasing our own premises in 2009.

The 80 – 20 rule: 20% of your customers contribute to 80% of your business.

What would you say to someone thinking about joining MTAQ? I have said to many people over the years that you can’t beat the support when you have an issue.

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

Your time is valuable - don’t give it away.

What would you say to someone thinking about joining MTAQ? Well worth the money. You must have membership.

Neil’s Automotive Servicing

Toowoomba Total Mechanical Location: 128 Mort Street, Toowoomba Type of business: Mechanical /

Tyre workshop

Number of employees: 3 Trading since: 2009 MTAQ member since: 2009

How did you hear about the Motor Trades Association of Queensland (MTAQ)?

What is the best thing about working in your industry?

Last place of employment.

Doing what I already enjoy.

How has being an MTAQ member benefited your business?

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

Tech support, Ben’s assistance and access to IR.

Half of something is better than 100 per cent of nothing.

What has been your proudest business achievement to date?

What would you say to someone thinking about joining MTAQ?

Independence and employing an apprentice.

That it is worthwhile and the benefits outweigh the cost.

August 2014 Motor Trader | 27

E S S E N T I A L S

Location: 45 Flanders Street, Salisbury Type of business: Mechanical workshop Number of employees: 7 Trading since: 1990 MTAQ member since: 2006

How did you hear about the Motor Trades Association of Queensland (MTAQ)?

M E M B E R S

Auto Stop

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

Industrial relations Classifying your employees according to the Award levels

W

E OFTEN RECEIVE calls from our members asking how they go about classifying their employee’s level according to the Award. The two Awards that apply to the majority of our members are the Vehicle Manufacturing, Repair, Services and Retail Award (the Vehicle Award) and the Clerks Private Sector Award (the Clerks Award).

The Vehicle Award and the Clerks Award both contain classification criteria in Schedule B of the Awards.

Within the schedule there is a detailed description with a list of typical duties and skills at each level within the Award. This is where you identify what level you should classify your employee in accordance with the Award.

To do this you examine the skills and duties required in their role that they will actually be performing and cross checking that with the list of skills and duties under each classification level. The duties and skills that most closely match in Schedule B to your employee’s role is their classification level.

It is important to be aware of what classification level your employees

MICHELLE CHADBURN INDUSTRIAL RELATIONS OFFICER

are deemed to be in order to ensure you are paying the correct rate of pay.

Recording the level of classification on their file streamlines the process when there is a pay increase to ensure you remain paying the correct rate of pay. This decreases the chances of owing back pay to any employees. If an employee’s position changes and they are given additional duties you should double check against Schedule B to see if they are due to go up to the next level.

Classifying your employee according to their level in the Award is still relevant even if you pay higher than Award rates. This is because if you have an Award Flexibility Agreement (AFA) in place you need to ensure that the employee is better off overall entering into the AFA. To do this requires you comparing the Award base rate plus entitlements to the higher than Award payment you are proposing. Additionally, if you are audited by the Fair Work Ombudsman you will be required to advise the classification level of your employees.

If you require any assistance with the correct pay rates and classifying your employees please contact our Industrial Relations Department. Templates for Award Flexibility Agreements and the current versions of the Awards are available on our member only section of our website located in the Industrial Relations section.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Aspley Automatics

Cliff Seitz

19 Webster Road, STAFFORD Q 4053

info@aspleyautomatics.com.au AED

Bob Jane T Mart Mackay

Dwain Freshwater

Shop 1 21 Victoria Street, MACKAY Q 4740

bjmakay@tmarts.com.au

TUDQ

Bundaberg Outdoor Power Centre

Keith & Louise Iseppi

47 Production Street, SVENSSON HEIGHTS Q 4670

bbcsm@bigpond.net.au

QMID

Hansen’s Tyre & Mechanical

Wayne Hansen

11 Broadsound Road, MACKAY Q 4740

wayne@hansens.net.au

AED

Mooney Street Auto Electrical & Air Conditioning

Scott & Roaslie Mooney

2 Lagoon Street, GOONDIWINDI Q 4390

scott@stmooney.com

AED

Offtap Motorsports

Tyson Kadel

51 Wood Street, GLADSTONE Q 4680

Ty84_au@hotmail.com

AED

Paul Feeney Group Pty Ltd

Paul Feeney

21 Palings Court, NERANG Q 4211

pfeeney@pfginfo.com.au

ARD

Robinvale Group

David Robinson & Fiona Robinson-Brumblecombe

21 Teatree Crescent, SINNAMON PARK Q 4073

Fiona@robinvale.net

SSCSAQ

Wayne Park Auto & Tyres

Wayne & Lisa Park

107 Castlemaine Street, MILTON Q 4064

lisa@waynepark.com.au

AED

28 | Motor Trader August 2014

Division

Investment matters

MARKET WRAP

G

EOPOLITICAL RISKS HEIGHTENED in June as fighting in Iraq intensified.

Brent oil was up 3.3% in June closing at $US113.16/barrel, while gold was up 5.8% at $US1316/ounce. The US Federal Reserve tapered its asset purchases by another $US10b to a monthly pace of $US35b, highlighting that ‘economic activity has rebounded in recent months’ and nudged up projections for short-term interest rates in 2015/16.

In Europe, the European Central Bank cut its key interest rates by 10 basis points and announced a series of ‘credit easing’ measures.

The traditional May confession season came late with a spate of profit warnings in June (mostly retailers) on the back of the unseasonably warm start to winter and a sharp decline in consumer confidence following the Federal Budget. The ASX200 Accumulation Index ended 1.5% lower, but for the 12 months to 30 June 2014 the index delivered a strong return of 17.4%.

The 2014 financial year saw the markets navigate an uncertain world quite successfully. It was a year that saw snowstorms disrupt US growth, conflicts in Syria and Ukraine, and Chinese growth rates slowing. Despite these global events, the returns in most asset classes were more than satisfactory. A key driver has been the very strong liquidity that continues across the globe, and indeed the snowstorms and other uncertainty only fed into the perception of interest rates staying lower for longer.

The reduction in global interest rates still remains a strong source of support for equity markets. These low bond yields provide support for all risk asset classes and, basically, if the US

bond yield is trading at 2.5% (3.6% in Australia), then investors are prepared to accept the risk to invest in a range of equities, property and infrastructure assets providing earnings yields of more than 6%. Within equities it has created resurgence in support for higher yielding defensive stocks. While there is no sign of an impending lift in interest rates, we think those companies most sensitive to a decline in interest rates look well owned and too expensive.

The Australian economy has been soft since the budget, seen in the fall in consumer confidence and to a lesser extent, business confidence.

The prospects for the Australian economy remain mixed. The resource capex cycle continues to slow but we would start to expect a pickup in some areas next year as companies that have delayed maintenance and cut costs seek to grow once again. Growth remains patchy elsewhere, with housing and infrastructure a key area of strength that we expect to continue.

Over the year, we expect consumer confidence to recover from the current low levels and small businesses to begin to show signs of improvement.

There has been much debate regarding Chinese growth rates in recent years. The Purchasing Manufacturing Index shows that the manufacturing sector has barely been growing. Recently there have been some preliminary signs of a pickup in response to government efforts to modestly stimulate the economy. From Australia’s perspective this plays out in terms of commodity prices. We have seen the first bounce in iron ore prices for some time. We are hearing that high-cost iron ore production is starting to shut down, which is supportive.

Valuations within resources have

generally pre-empted the falls in commodity prices, but investors have been reluctant to buy resources while the commodity prices are falling.

Investors are likely to be cautious as there have been other false rallies in the space. Signs of further closures, or greater confidence that China has bottomed out, will drive greater interest in the sector.

US growth has been softer than expected in the first half of 2014, partially impacted by the snowstorms.

However looking at the manufacturing survey, growth appears robust.

We have also seen improvements in housing following uncertain signals, and the consumer remains buoyant.

Employment growth is also looking solid. There has been nothing to suggest that the improvement in the US economy is in trouble.

Given the factors discussed here, we consider the current market earnings expectations and valuations.

The market is currently forecasting 8% earnings growth. Overall this seems achievable, although if the currency remains at 94 cents for much longer it will be more difficult. In terms of valuation the PE looks within the range of reasonable. The grossed-up dividend yield continues to look attractive relative to low interest rates and cash rates and will attract buyers.

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.

August 2014 Motor Trader | 29

Solar revolution

BENEFITS OF SOLAR OFFER A BRIGHT FUTURE

W

ITH ENERGY PRICES on the rise, considering an investment in solar power has never been a sounder business proposition.

And with systems available that can supply almost all of a business’s power requirements and have a financial payback within just a few years, savings are substantial.

Paul Reynolds and Laurie Bradbrook from Australian All Energy Solutions (AAES) have overseen the installation of systems across Qld, providing solutions for customers ranging from the rural farming sector to commercial and industrial projects - including the 30kW system at MTAQ’s headquarters.

Currently, AAES are in the process of installing a solar system at MTAQ member business Brady Body Works – splitting the system across the business’s three buildings with a 16kw system and two 6kw systems.

The system is, said owner Mark Brady, a vital development for the company.

“This was my father’s business, started 44 years ago. When I started there were seven people and now we have 26 staff.

We’ve seen massive growth.

“But the cost of energy was killing us,” he said. “We use lots of threephase power on our spray booths and welders, and with the cost increase from July of about 15 per cent, something needed to happen.

“Laurie and Paul came down with a 30 | Motor Trader August 2014

“IT’S NOT A MATTER OF SAYING ‘PUT SOLAR PANELS ON EVERY BUILDING... IT’S A MATTER OF IDENTIFYING THE BEST COURSE OF ACTION.” proposal and what got them over the line is the way they have sat down and spoke to us, and other clients, and the data they produced.

“Any questions asked of them they have produced answers straight away.

They’ve been easy to deal with and their installers are excellent – it’s been a good experience.”

Attention to detail is a mark of the success of AAES and it’s a philosophy that extends to consideration of potential power issues for large enterprises – those that use more than 100mWh of energy per annum.

That is a figure that automatically sees a business qualify for the contestable market, which has a twotiered costing but a kW contestable market demand charge that is in the $$$$ per kW. Its a development that solar power can help alleviate.

"A business may be paying in the vicinity of 30c per kW under their current tariff," said Paul. “If they have their tariffs reclassified, then their price per kW will come down

considerably to around 10c per kWh but their peak demand charge will be significant and they won't get their returns on solar.

"For example, a 33 kW system will produce 50,000 kWh per annum.

Under the ‘contestable market’ the tariff charge of 10c means solar will be producing a saving of $5,000 per year.

However if the business is working on the 30c per kWh tariff then that system would save $15,000 a year."

Its a scenario that becomes even starker for businesses that may hover near the 100 mWh line.

“If someone were using 90 mWh per year, we could install a solar system and have a 30 per cent saving” said Laurie.

“However, someone using 120 mWh would see only a 12 per cent return.

A 30 kW solar system installed on this business could see a saving of up to 50 mWh per year and they could apply for a tariff reclassification to benefit from a higher return on their solar."

This attention to detail is just part of the AAES philosophy to take a broader view of energy solutions, complementing solar with other plans.

“It’s not a matter of saying ‘put solar panels on every building’,” said Paul. “It’s a matter of identifying the best course of action. We do an energy audit, look at the power bill - we look at everything to determine how best we can help. Depending on what the customer wants to achieve, we can put a plan together.”

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AAES is one of Queenslands leading solar brokers and experts in solar solutions.

We cater directly to the commercial and industrial community, to team up with clients to reduce ongoing and spiralling energy costs.

With the rising cost of electricity and ever increasing financial burden on small businesses, solar is now a very attractive alternative for reducing your grid dependency on electricity and taking control of spiralling energy costs.

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Industry insight

FINANCIAL CONTROL KEY TO BUSINESS SUCCESS W E SEE, HEAR and witness almost every week failure of businesses around us.

We hear about the large companies, and also see in our travels many other smaller ones fall by the wayside.

Companies fail essentially due to poor management, poor financial control and in some cases fraud.

If this is the plight of big businesses, what chance do small businesses have to avoid financial failure or mediocrity?

The answer is to have your ‘finger on the pulse’ of your finances, which means, past, present and future.

Here are some suggestions for what business owners/managers need to know:

INCOME How does it stack up against your budget or target? If you didn’t have a budget or target last year, now is a good time to start one for this year.

There’s an old saying ‘If you aim at nothing you will reach the target with amazing accuracy!’

Which income streams performed best? If you didn’t measure it last year, now is a great time to start.

Once you start measuring profit by income streams, you can maximise the strongest and work on or eliminate the weakest performers. At least you have the information to make a decision. Are there other streams of income you should consider and are they viable? Get a Financial Controller to work it out before you proceed. Can you better utilise existing resources to maximise income e.g. can labour, equipment, space etc. be more productive? Are there innovative ways you can create other revenue streams e.g. internet sales? Can marketing and sales be improved to create greater volume?

32 | Motor Trader August 2014

COSTS

How do they stack up against your budget or expectation in terms of percentage of income? If you didn’t have a budget or idea of what they should be, now is a great time to start measuring it this year. Managing and minimising your costs can have as much impact on your bottom line as big volume increases in income, because every dollar saved goes straight to the bottom line. If you don’t know what your Costs should be, a good place to start could be your industry benchmarks. These will give clues as to what to expect.

OVERHEADS How do they stack up against your budget or expectation in terms of percentage of income? Just like Costs, overheads need to be managed and minimised. Ask yourself of every line item on your Profit and Loss “Is this overhead necessary and how can I minimise it?” In a ‘price conscious’ and competitive environment management of costs and overheads can be your only way of making a profit. Check your percentage of overheads against your industry benchmarks to see how you compare.

CASH FLOW This naturally follows on from the above. If you manage to make a profit, now you have to follow it up with good cash flow management.

This requires a good understanding and close eye on what drives cash flow.

The key components of good cash flow management are: • Plenty of profitable income.

• Constant management and minimisation of Costs and Overheads.

• Pricing for profit – if you’re able to increase prices Do It!

• Efficient collections from customers – don’t be a bank for them.

• Good management of stock – enough to sell but not too much to waste working capital.

• Good management of jobs – finish them as quickly and best quality possible.

• Utilising all credit terms from suppliers and increasing where possible.

The very best way to handle cash flow management is to have a ‘Cash Flow Projection’. It’s a simple spread-sheet that plots out what your expected income will be (taking into consideration time for customers to pay) and what your expected outgoings will be. As well as income it includes any other funds into the business, such as loans, tax refunds etc. Outgoings also include items such as loans, tax, dividends etc. These are important to take into account as their timing can have a big impact on cash flow.

SYSTEMS AND RESOURCES To achieve all of the above you need systems and people in place to make it all work. Systems are freely available today to help you efficiently manage all of the above. On top of systems you need people who understand how the finances work in a business. If you employ a financial controller, or have a good accountant who has the time and expertise to delve deeply into your ‘day to day’ financial management, that’s great. If not, you need someone on your team who can keep things on the ‘right track’ financially on a constant basis.

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

Travel Further – Go the NTK Way Not many people realise just how important correctly selecting and fitting the right oxygen sensor is to a vehicle’s performance. NTK Oxygen Sensors effectively and efficiently monitor the concentration of residual oxygen within the exhaust gases produced by an engine; to ensure the vehicle is not running too rich or too lean.

The result is optimal fuel efficiency and a reduction in harmful emissions, which means that you can help your customers travel further on one tank, while at the same time reducing their impact on the environment.

NTK’s aftermarket oxygen sensors are designed to match or exceed original equipment specifications and have a factory fitted connector to ensure a direct fitment is guaranteed every time. So the next time you need to replace an oxygen sensor, choose NTK, the world’s largest manufacturer of oxygen sensors.

NGK/NTK E-Learning Accomplish NGK and NTK product modules.

Learn the basics of the products and beyond.

Receive a certificate upon completion of each module.

Go to www.ngkelearning.com.au and register now!

J000400A

To find out more about the cost saving effects of NTK Oxygen Sensors visit ngk.com.au

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