Motor Trader Dec 2014 / Jan 2015

DEC 2014 JAN 2015

TRUCK MECHANIC TURNED MOTORBIKE RACING LEGEND GUY MARTIN OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

MEMBERS CLASSIC: 1956 FJ HOLDEN UTE

SHIFT YOUR

DEALERSHIP INTO

TOP GEAR

NADA UNIVERSITY COURSES ARE NOW AVAILABLE THROUGH AADA, INCLUDING: Service Department Operations Management Sales Operations Management I Sales Operations Management II

PHONE: 07 3237 8777 OR EMAIL: COURSES@AADA.ASN.AU WWW.AADA.ASN.AU

IN S T IT U T E O F T E C H N O L O G Y

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 Barry Browne 03 9807 9154 Email: barry@barrybrownemedia.com.au Emily Metelmann 07 3237 8784 Email: emilys@mtaq.com.au EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement.

For more information telephone the Editor 07 3237 8777

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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

02 From the editor 04 Policy/Viewpoint

CORPORATE PARTNERS

06 Divisional news 08 MTA Q&A

HUDSON PANEL BEATERS: BRAD AND KATRINA HUDSON Feature 10 THRILL SEEKER: GUY MARTIN

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14 Australia's Best Cars 16 Members Classic AN FJ BEAUT: 1956 FJ HOLDEN UTE

MEMBERS ESSENTIALS 19 President's Ball 2014 23 Training matters 26 Member profiles 30 Investment matters MARKET WRAP 32 Industrial relations 33 Industry insight AIM AT NOTHING AND YOU WILL HIT THE TARGET! December 2014/January 2015 Motor Trader | 1

From the editor

JONATHAN NASH EDITOR

H

ELLO AND WELCOME to the final edition of Motor Trader for 2014.

I'd like to start off on a personal note by mentioning that it has been one year since I took on the role of editor of this magazine. It has been a most enjoyable 12 months. I have met and interviewed many MTAQ members, and MIT apprentices, and a wonderful group of hardworking and generous people they have turned out to be.

The automotive industry, no matter the sector you work in, can be a demanding beast but the enthusiasm for the industry which I have encountered time and again is inspiring.

So, on to the contents of this month's edition.

Our cover story concerns the intriguing personality that is Guy Martin. A mechanic by trade, the motorbike fanatic has made a name for himself over the years with his love for, and participation in, the Isle of Man TT race - the annual motorcycle madcap race through the towns and villages of the small island off the west coast of England.

Martin has been racing the event for years and became famous to a wider audience thanks to the documentary movie Closer To The Edge which focused on his involvement in the TT. Fame, books, TV shows would follow, though he has always kept his day job as a truck mechanic. He is a very interesting fellow.

In our MTAQ&A this month we talk to Brad and Katrina Hudson from Hudson Panel Beaters in Pittsworth.

Started by Brad's father more than 40 years ago, the business is now owned and run by this hardworking and tremendously likeable couple and they continue to drive the business forward, expanding its services into unusual areas while always keeping a close eye on quality, service and loyalty to their community. Read more about them on pages 8 and 9.

In our Members Classic feature this month we stay close to home by chatting to MIT trainer Jeff Mann about his absolutely fantastic 1956 FJ ute. A restoration many years in the making, Jeff and his late father turned the ute from workhorse to work of art.

Take a look on page 16.

Also this month we take a look at the 'Australia's Best Car' winners, announced in November; wrap up all

the news from the MTAQ President's Ball and catch up with our Apprentice of the Year Sarah Gale.

In Training Matters this month, we highlight the continued success of MIT apprentices during the 'award season' with two of the organisation's apprentices, Luke Smith and Connor Litchfield - both third year automotive electrical apprentices with Brisbane City Council - claiming the Council's Apprentice of the Year and Innovator of the Year awards respectively.

We also continue to follow our South Korean guests - ten young students from that nation's Daejeong region - who have been training with MIT for the past few weeks.

I hope you enjoy this edition.

As always, we endeavour to bring you news and insight into the automotive industry, the most up-to-date information regarding training opportunities and, of course, highlight members' interests.

If you have a story you think is worth telling, please don't hesitate to contact me.

In the meantime, the team at Motor Trader wish you all a very merry Christmas and we'll see you all again in 2015.

Cheers,

Jonathan Nash jonathann@mtaq.com.au

SENATE ANNOUNCES INQUIRY INTO THE FUTURE OF THE AUTOMOTIVE INDUSTRY THE AUSTRALIAN SENATE has announced that it will conduct an inquiry into the future of the automotive industry amid fears that cuts to various support programs, including the Automotive Transformation Scheme (ATS), could see manufacturers leave Australia earlier than planned, leaving tens of thousands of jobs in the components industry in jeopardy.

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The inquiry stems from discussions within the Senate's Economics Legislation Committee over the ATS, with Senator Kim Carr from the ALP along with independent Senators Nick Xenephon and John Madigan plus Ricky Muir from the Australian Motoring Enthusiast Party opposing changes to the ATS and recommending the inquiry into the entire Australian automotive industry.

The inquiry will cover all aspects and sectors of the industry including motor vehicle production, component making, after market manufacturing, engineering, servicing, retail motor trades, other forms of sales support and the training of apprentices.

Submissions to the inquiry close on May 29, 2015 with a report to be expected by the first sitting day in November 2015.

SUN SHINES ON MTAQ'S SOLAR POWER PARTNERSHIP

MTAQ's power usage fell dramatically from September 2013 (left) to September 2014 (right) after installation of a 30kW solar power system by Australian All Energy Solutions

T

HE PRICE OF energy is an issue for every business, and with the cost of electricity continuing to rise installing solar power has never been a more sound proposition. But to whom can you turn for expert advice on the benefits of solar power?

MTAQ has formed a partnership with Australian All Energy Solutions (AAES), the highly experienced team of solar energy experts who installed the system at MTAQ's headquarters - The Sir Jack Brabham Automotive Centre of Excellence.

AAES installed a 30kW system for MTAQ and that system has reaped extraordinary benefits in just 12 months. Figures indicate MTAQ will save more than $8000 on its energy bill in the first year thanks to a dramatic fall in electricity demand - MTAQ's peak daily demand in September 2013, for example, was 117kW while in September 2014 it hit just 67kW. "The results are in and far better than expected," said AAES founder Paul Reynolds. "Our original estimate was a saving of approximately $4000 per year but we’re actually up around $8000."

And as the weather heats up during the coming years - and as businesses' energy bills inevitably rise as a result - a solar system application is the perfect solution.

And those solutions do not have to be massive, or massively expensive.

In fact, AAES focuses on 'optimum efficiency', emphasising that a large and expensive system that produces

“WE'RE PROUD OF THE

PARTNERSHIPS WE HAVE WITH OUR CLIENTS. THEY CAN HAVE CONFIDENCE KNOWING THEY'RE DEALING WITH PEOPLE WHO KNOW WHAT THEY’RE DOING AND THAT THE RELATIONSHIP GOES WAY BEYOND JUST SELLING THEM A SYSTEM.” more power than required is both a waste of power as well as money.

"Bigger is not necessarily better," said Paul. "The biggest system doesn’t necessarily mean the optimum return.

We’re interested in the customers getting a long-term benefit and a quick return on investment."

AAES can, of course, accommodate systems up to any size, but always with an eye on the returns to the client.

"If a big system is needed we recommend it be done in stages. That way a client can see some benefit before moving on to the next stage."

AAES is also at the forefront of providing new and exciting

developments to customers and are constantly analysing innovations in technologies. These include new and more efficient battery systems that can add energy protection and value to a business's bottom line.

The company also has a range of finance plans that can allow customers to install a range of energysaving solutions without a large up-front payment and which include a number of benefits, including no deposit and flexible repayment terms.

AAES will soon be conducting presentations for MTAQ Members on energy-saving solutions and these will include case studies unique to the Association's divisions, offering specific analysis of potential benefits to the members of the service station division, new car dealers, mechanical workshops and other industry sectors.

One of the AAES team's strengths is their follow-up service - a service that helps to educate clients on exactly how solar systems work. It's a service that builds a close relationship with their clients, much like the one developed with MTAQ. "We're proud of the partnerships we have with our clients," said Paul. "They can have confidence knowing they're dealing with people who know what they’re doing and that the relationship goes way beyond just selling a system."

Members can contact AAES on 1300 137 227 and visit their website at www.aaes.com.au MTAQ will also contact members with details of upcoming AAES presentations.

December 2014/January 2015 Motor Trader | 3

Policy/Viewpoint Before going on to talk about the economy, I want to mention that we, ourselves, have an upcoming celebration. On December 12, we will have been in the Sir Jack Brabham Automotive Centre of Excellence exactly three years. Each of us who work here are proud to do so in a state-of-the-art office.

THE ECONOMY KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND

S

EASONS GREETINGS TO each of you. MTA Queensland staff join me in wishing Members a joyful Christmas and a happy and prosperous New Year.

This edition of Motor Trader aligns with two important events on the calendar - Christmas and New Year.

Editor Jonathan Nash has put together interesting reading to tide you over until our February 2015 edition.

I was listening to the radio on my way home from the office.

The announcer commented that Christmas had come around quickly.

I don’t know how you feel, for me it has been a long year. Here at the MTA Queensland much has happened in terms of introducing initiatives to benefit Members and of course we don’t take the feet off the advocacy pedal. Yes, it has been a long and busy year!

We can point to the new website, which will be live by the new year, the Skype infrastructure and the teleconferencing capacity to minimise the tyranny of distance giving Members immediate access to information and providing the medium to be involved in meetings and discussions. Each of these initiatives took much planning and administration. Our advocacy has been concerted and of a high standard bearing long awaited results which I will elaborate below.

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It has been a difficult year for business with the drought, now long term, spreading tentacles across more than 80 per cent of Queensland and the ongoing downturn in the resources sector. The policy instability emanating from the Federal Parliament has not helped business halt eroding certainty and confidence.

The Reserve Bank (RB) Board, for the 15th month in a row, left the cash rate at the historic low of 2.5 per cent and it seems it will be that way for some time. The RB Governor Glenn Stevens, in a recent speech, indicated that interest rates may need to stay low for years because of the weak economy. He warned, however, the property prices would have to be kept in check. Mr Stevens suggested that “faltering jobs and wages growth meant it would be a ‘couple of years’ before inflation triggered rate hikes”.

The Westpac-Melbourne Institute leading index of economic activity showed a glimmer of light. The index indicates how the economy is likely to be in three to nine months' time.

The latest reading showed the index still running a bit below its longer term trend, as it has for the past nine months, but closer to normal than it has been recently. This means, according to the Westpac Chief Economist, that the economy should continue to grow at a below normal pace into early next year.

Dun & Bradstreet analysed replies to a simple question asked in its survey: how long are businesses taking to pay their bills? The responses indicate a positive trend. From late 2009 through to 2013, the proportion paying their bills within the standard 30 days was never more than 40 per

cent. In the September quarter there was a rise to 53.6 per cent - over 50 per cent for the first time. This shows a significant improvement in the health of the business sector. When the economy is soft and cash flow is not as strong as it could be, businesses delay paying their bills.

Offsetting this has been the recent Australian Chamber of Commerce and Industry September quarter survey of small business. Overall, business conditions remained tough with small businesses pessimistic about the state of the economy. Current indicators for small business conditions - sales revenue, selling prices, profits, employment, overtime utilisation and investment were all firmly in “contractionary territory”.

NEW MOTOR VEHICLE SALES The statistical data for Queensland’s new motor vehicle sales indicates that this market is depressed compared with the previous month and on a year-to-date basis.

For October, according the respected VFACTs, new motor vehicle sales numbered 16,990, down 1,067 or -3.2 per cent for the same month in 2013. On a year-to-date basis, there has been a total of 185,852 units sold.

This is well below the 196,640 for the previous period. In fact it is a 9,188 or -4.7 per cent decline. It is clear the 200,000 new motor vehicle sales barrier will not be broken this year.

Nationally, there was a new motor vehicle sales decline of -1.5 per cent compared with October 2013. On a year-to-date basis there was fall of -1.9 per cent. Having said that, the Federated chamber of Automotive Industries (FCAI), which compiles VFACTS, is upbeat, predicting that for the third time in a row new motor vehicle sales will top the 1.1 million mark. I trust Queensland’s new motor vehicle sales over the remaining two months of this calendar year are strong contributors.

The Free Trade Agreements with Japan, South Korea and China have placed a focus on the automotive sector particularly with the demise

from 2017 of the motor vehicle manufacturing sector. Recent FCAI analysis indicates that new cars are now more affordable than ever before.

The analysis of comparable car prices in key right-hand drive markets has found that many popular models are competitively priced in Australia compared to Japan and the United Kingdom, including comparable cars from Toyota, Holden, Ford and Mercedes-Benz.

CommSec, in a separate study, confirmed car affordability in Australia is at its best level - ever.

According to CommSec, a person earning the average wage has to work for about 26 weeks to be able to purchase a new Ford Falcon XT auto sedan, compared to 30 weeks just a couple of years ago.

ADVOCACY Trade and Investment Forum President David Fraser, at the invitation of Premier Campbell Newman MP, attended the fourth and final Business Advisory Forum for 2014. The focus was ‘Opportunities for Trade and Investment’. This forum was a spin off from the G20 with two guest speakers who had participated at the Brisbane Global Café ahead of the G20 Leader summit. The President provided a brief concentrating on investment in vocational training and the foundation skills of literacy and numeracy to enable apprentices and trainees to commence and finish apprenticeships. He advised that despite increasing unemployment, in specific sectors of the motor trades there were skills shortages.

MOTOR DEALERS AND CHATTEL AUCTIONEERS ACT 2014 When you receive this edition of the Motor Trader, the new regulatory regime applying to the Motor Dealers and Chattel Auctioneers Act 2014 will have come into effect. As I said in November’s Viewpoint, the Attorney General and Minister for Justice Jarrod Bleijie MP advised that December 1 would be the commencement date.

This is a milestone for the Automotive Remarketing Division which has strived for this outcome for more than a decade to benefit Members in this sector as well as non-Members.

I look forward to feedback on the changeover. If there are any teething problems, please let us know. As indicated on several occasions, we have an excellent working relationship with the Office of Fair Trading so there is no need to struggle with a problem when we can either help or obtain it for you.

COMPETITION POLICY REVIEW DRAFT REPORT SUBMISSION On the policy front, the major work has been our comprehensive response to the Competition Policy Review Draft (Harper) Report. Rather than detailing it here I urge Members to view it on our website. Our views may not win the policy battle, but they are on the record. The Government’s response will be interesting. I will keep you informed.

NEW FRANCHISING CODE OF CONDUCT The improved and updated Franchising Code of Conduct has been released becoming law as of January 1, 2015. The significant points include (as notified by Lawyers HWL Ebsworth) • Preventing motor vehicle manufacturers from imposing significant capital expenditure obligations on dealers during the term of a Dealer Agreement unless it has already been disclosed or the motor vehicle manufacturer has provided the dealer with a business case statement; • Restricting the circumstances in which a motor vehicle manufacturer may immediately terminate a Dealer Agreement; • Requiring motor vehicle manufacturers to act in good faith, honestly and non-arbitrarily, including during negotiations and renewal negotiations; • Restricting the ability of motor vehicle manufacturers to enforce restraints of trade on a dealer if the Dealer Agreement is not renewed or not extended; • Requiring motor vehicle manufacturers to provide a 'risk statement' in a particular form once it becomes apparent to a motor vehicle manufacturer that a Dealer Agreement is likely to be entered into;

• Requiring disputes between motor vehicle manufacturers and dealers to be litigated in the state where the dealership is operated; and • Preventing motor vehicle manufacturers from seeking to recover their costs of the dispute resolution from dealers Certain terms of the new Code will not apply to Dealer Agreements entered into before January 1, 2015.

However, if a pre-January 1, 2015 Dealer Agreement is varied or transferred after January 1, 2015, the new Code provisions will apply.

Detailed transitional arrangements are set out in the Regulations tabled in both Houses of Parliament which bring the new Code into effect.

The Australian Competition and Consumer Council (ACCC) is preparing guidance material for franchisors and franchisees. Check the ACCC website http://www.accc.gov. au/business/franchising The outcome of this new Franchising Code is rewarding.

The MTA Queensland has been involved in submissions relating to the Franchising Code of Conduct since 2008. We did so as franchising constitutes an important business model for our Members whilst supporting economic growth and a framework that equitably protects the interests of all stakeholders.

Whilst I may be preaching to the converted, your Association has worked the policy levers quietly with excellent results. These are sound reasons to be a Member - apart from the industrial relations and other services delivered.

REPAIR SECTOR The impasse relating to the Voluntary Code of Practice relating to the Access to Service Information appears to be drawing to a close following the intervention of the Minister for Small Business Bruce Billson MP. He has sought a stakeholder consensus and finalisation by December 3 of the Voluntary Code. This issue has been ongoing for 24 months and it's more than time it was ‘wrapped up’ so that there can be certainty and confidence for all stakeholders.

December 2014/January 2015 Motor Trader | 5

Policy/Viewpoint REGIONAL VISITS In the past year, the practice of meeting with regional Members to hear their issues, gain understanding of their service needs and our delivery of these was reinstated. We visited Rockhampton and Cairns in May, Mount Isa in August, Mackay in September and the year ended with a promised return visit to Cairns at the end November. Meetings with Townsville Members will be scheduled for next year.

These visits are in addition to the hands on visits from our Divisional Executive Team of Andy O’Hearn, Ben Chesterfield and Ian Cole to Members.

ANNUAL PRESIDENT’S BALL The Annual President’s Ball was sold out before the close date! Clearly it was to be an enjoyable event. And it was - a night of glamour, camaraderie and toasting of success. A highlight of the evening was the announcement

of the MTA Institute of Technology Apprentice of the Year Award winner.

This went to Sarah Gale of Rego’s Mobile Mechanical Services in Atherton.

Please look at the website to view a glowing picture of Sarah receiving the $2000 award from MTAA Super.

It is worth repeating that Sarah indicated that she would invest the award in a new toolbox - which she needed. Mike Kennedy from Brisbane Motor Auctions and Chairman of the Automotive Remarketing Division announced that AP Eagers would donate a new toolbox allowing Sarah to use the funds for another purpose.

Congratulations to Sarah and thank you to MTAA Super and AP Eagers.

There were two other prestigious awards announced. The Crick Auto Group was recognised for their support of their communities with two initiatives - the Crick Eastham Foundation and Cricks 12 Lives initiative.

The Innovation Award went to A1 Mobile Mechanics for the CM4000

which is a jump pack that takes into consideration all the new technology that is available, including the safety of the user. Congratulations to the Auto Crick Group and A1 Mobile Mechanics.

The charity auction for a Suncorpdonated, signed 2014 Maroons jersey raised a total of $5,700 for Youngcare.

Michael Kennedy of Brisbane Motor Auctions was the successful bidder with $2,850 and Joe Walsh of the Gemini Group committed to match the bid with a donation direct to Youngcare.

GREETINGS Best wishes to all Members and Staff for a joyful Christmas and a New Year of happiness, achievement and prosperity. My hope is that there will be federal policy stability and steady soaking rain to provide economic confidence and certainty for all business sectors.

My family and I will spend some time on the Sunshine Coast.

To all, take care and stay safe.

INSTRUMENT REPAIR Divisional news AND RESTORATION Ben Chesterfield

NACA

• • • • • • •

Odometer setting on new clusters (proof of mileage required) Repair of digital clusters Service and restoration of all classic instruments Ratio boxes, speedo and tacho cables made to order Pixel and LCD screen repairs Repair of fuel tank sender units Our repairs offer a viable alternative to having to buy a second hand item or expensive new item

LIONEL OTTO INSTRUMENTS Contact: John Robertson P: 07 3277 3888 F: 07 3277 8520 E: info@ottoinstruments.com.au 124 Evans Rd, P.O. Box 9, Salisbury, Qld. 4107

www.ottoinstruments.com.au 6 | Motor Trader December 2014/January 2015

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LIONEL OTTO INSTRUMENTS has been servicing the automotive industry for over 40 years. Our level of service is second to none.

We take pride in restoring your instruments to showroom condition and revel in the challenge of a “basket case”.

Here we are at the end of a difficult year, and just when we thought there was no work on the horizon Brisbane is smashed by what they are saying is the biggest hail storm in 30 years.

We should make the most of the opportunities this type of storm brings but in doing so don't lose sight of the bigger picture - survival.

The focus still needs to be on what is viable and sustainable for the long term future of the industry.

We held our industry development summit late last month and it was most disappointing to see less than 20 shops in attendance, though I do

understand that the storm was an influence on some people not being able to make it. The feedback I had from those that attended has been very positive.

I wish you all a safe and happy christmas and hope we return next year with renewed vigour to tackle what will surely be the biggest year facing our industry.

AED We recently held our last committee meeting for the year and the hot topic was access to information. We have been enquiring of our independent workshops on a regular basis whether they have any issues and the overwhelming response is 'no'. I would encourage everyone to have some

News JOHN ANDERSON: 1939 - 2014

M

OTOR TRADER IS sad to note the passing of former MTAQ Board member John Anderson, who died in November, aged 75.

For many years Mr Anderson ran Anderson's Auto City - the family business that his father Harold and elder brother Colin created after buying a GM dealership in Gladstone in 1953. He took over the business in the '80s after his father and brother retired, and he oversaw the company until his own retirement in the late '90s at which time his own sons, Les and Brad, took over the business.

Born in Gladstone in 1939, John Anderson spent part of his childhood in Nambour where the family ran two movie theatres and a real estate agency. The move back to Gladstone would see him begin work at the family's new automotive business venture in 1954 and he would stay with

the company the rest of his working life.

During that time the business would incorporate marine and motorcycle businesses through Anderson's John Anderson Marine Centre and Anderson's Motorcycles before the decision was made to focus on the automotive business.

That company would eventually acquire franchises for Mazda and Mitsubishi along with Holden.

Committed to the community in which he lived and worked, John Anderson was chairman of the Gladstone fire brigade for 25 years and

also served on the fire brigades State Board. He also served on the board of the Endeavour Foundation, of which he would become a life member, and was also heavily involved with the Lion's Club for more than 20 years.

A keen sailor, he competed in the lightweight Sharpie sailing class, winning Queensland titles, and sailed in the Australian titles on the Qld crew in 1961. His interest in sailing would see him become Commodore of the Gladstone Sailing Club.

Although heart problems forced him to give up competitive sailing in 1963, he kept up his love of the water through fishing and boating for the rest of his life.

John Anderson is survived by his wife, three children and six grandchildren.

The MTAQ offers its sincere condolences to his family.

with Ben Chesterfield and Ian Cole input and speak to us if you have any issues in order to move forward.

I wish you all a safe and happy christmas.

ERAQ The last meeting was cancelled due to a lack of attendees. This is not good to see and I'm sure there will be discussion in the new year as to the direction of this division.

Ian Cole

ARD Motor Dealer and Chattel Auctioneers Act 2014 effective December 1, 2014 There will be new forms and required paperwork associated with the introduction of this new act. The forms that will be

affected are as follows: • Dealer and Trust Account Receipt books • Used Vehicle Contracts • New Vehicle Contracts A3 with Trade • Vendor Statement to Motor Dealer books • Appointment to Act on Consignment books MTA Qld has the new stationery available for purchase via the stationery department. You cannot use the forms applicable to PAMDA after Nov 30, 2014.

Another of the main changes is that Statutory Warranty B has been removed and members need to ensure that they are complying with signage and advertising content if they are selling unwarranted vehicles under the new act.

“No Statutory Warranty” signs are available for purchase via the stationery department

QMID Motorcycle Discussion Paper May 2014 One of the outcomes from this paper was the introduction of lane filtering in early 2015. Under the change, motorcyclists will be able to weave through traffic moving at 30k/ph or less with the exception of school zones.

Please note that, at this point, current rules and penalties for riding a motorcycle still apply until the changes commence in early 2015.

Although there is no statutory warranty applicable to motorcycles,

the introduction of the Motor Dealer and Chattel Auctioneers act has some implications for the motorcycle industry.

As discussed before in this column there is still the need for motorcycle dealers to comply with the new paperwork introduced on December 1, 2014.

APRD As members of the APRD are also licenced motor dealers, please take note of the introduction of the Motor Dealer and Chattel Auctioneers Act as you need to be aware of the requirements of the new act as it may apply to your business.

I would like to wish everybody a happy and safe festive season.

December 2014/January 2015 Motor Trader | 7

MTA

QA &

MT: What products and services does Hudson Panel Beaters provide?

BH & KH: Panel beating and spray painting, of course, but also windscreens and window tinting and work on everything from trucks to tractors, motorbikes to cars, from race cars to renovations. We are starting to do air-brushing work and we also work on huts for mining sites - there's a business in town which builds them and ships them to Darwin and Perth and we paint all the doorways for them.

We are a rural business so we do a lot of different work outside the usual insurance jobs. People ask us 'Can you paint this?' and we say 'Of course'.

It's only paint. It doesn't matter if it's timber, fibreglass, plastic - whatever it is we can paint it. We have to be versatile - we have a population of only around 2000 people in town.

MT: How did you get involved with the business?

Michael and Neil Hart

Katrina and Brad Hudson from Hudson Panel Beaters

BH: Mum and Dad started the business 46 years ago and were running it when I left school and needed a job.

Dad didn't want to put me on.

He said, 'Go and do something smarter' and I sat at home for a few days until Mum said 'That's it, get up and work with your father!' That was 34 years ago!

The business has always been in Pittsworth. Dad worked for a mechanic here for a couple of years and then did panel beating for another 12 months before deciding to work for himself and starting the business.

Katrina and I purchased the

Hudson Panel Beaters has been servicing the rural area around the small country town of Pittsworth for more than 40 years. Brad and Katrina Hudson purchased the business from Brad's father in 2009 and have driven it forward, expanding its services while keeping its focus on customer service, quality and loyalty to the town and the community. business in 2009 but dad still does some panel beating for us.

MT: Who are your customers?

BH & KH: We have customers from Blackhall, Longreach, Goondiwindi, Moree and Toowoomba. We find that people who have been brought up in a country area like how we talk to them, how we treat them - some of the big shops can be impersonal. We've been brought up differently. We know everyone and we have a lot of loyal customers - from granddads to their sons and on to their grandsons who have licenses now.

We don't really have public transport here, and we don't have a hire car company in town, so Katrina will drive them around or we can use our two courtesy vehicles.

MT: Is the 'personal' service - getting to know you customers - really important?

BH & KH: It is in a small country town.

We support as much as we can - from the junior league club to the bowls club to the golf club. Small country towns only survive through support.

If we don't support the town then people won't support us, and if our workload is less that affects more than just us. At the moment any mechanical work we need doing is done by the local mechanic and we get tyres from one local tyre business while another does the alignments.

Another business, an auto electrician, does air conditioning work for us. So there are five businesses that rely on us.

Everything we need we get locally.

“WE ARE ON THE MONEY ALL THE TIME, MAKING SURE THE QUALITY OF OUR WORK IS SECOND-TO-NONE.�

Paper, printing, clothing, fuel - we buy everything in town. It makes sense to do that.

MT: Toowoomba is only 30 minutes away how do you stay competitive with the city businesses?

BH & KH: We are on the money all the time, making sure the quality of our work is second-to-none. Our boys get training every six weeks - we have a Spies Hecker and Du Pont rep come for in-house training. Sometimes the reps come for a few hours, sometimes for a couple of days if they have a new product they want to show us.

Our staff are professional tradespeople in an industry that gets more technical every day. They are doing a trade that is not easy and we have that respect for them. We have a couple of the guys here who have been with us for more than 10 years, so we're doing something right.

We're also working on ways to be more environmentally-friendly. Just because we're in the country does not mean we have to be behind. We have to be smart and on the ball.

MT: How has the drought affected businesses and the communtiy?

BH & KH: If someone has had an incident

but the vehicle is driveable, then we find they will keep it like that until such time they can afford the insurance excess. Alot of people want to keep every cent in their pocket and don't get things fixed straight away.

MT: What are your plans for the future?

BH & KH: This trade still has a lot of good things going for it, so we'll look to keep moving forward.

Keeping up with new technology is important - we don't want to let technology get too far ahead. It's important that we are onto it now, always learning, so that when another technological jump comes along we're ready. You can't let that gap become too big.

BH: As for the future, do I want our 13-year-old son Zak to take over and carry on the family name? That would be good. He races Go Karts though, so if he decided to do become a V8 Supercar driver, I would back him for that! This job can be frustrating. I think V8 Supercars would be good for me - I would be a good crew chief !

MT: What do you do with your spare time, if indeed you have any?

BH: I go water skiiing and fishing and take Zak to race Go Karts, which takes out about 30 weekends a year.

We race across the country - Sydney, Newcastle, Darwin, Gladstone. It's a big investment in time and money.

KH: I go when I can - but mostly I have to stay here and be the responsible one!

December 2014/January 2015 Motor Trader | 9

10 | Motor Trader December 2014/January 2015

Lorries, bikes, spanners, and sideburns: Guy Martin talks to MTA Queensland about his rise from the garage to the TT track.

Y

OU WON’T COME across too many TT racing, TV presenting truck mechanics, which is perhaps why Guy Martin, he of eccentric personality and recklessness on a motorcycle, has made such traction over the past decade.

Comparisons with Tour de France winning cyclist Bradley Wiggins are clear, and not just because of the copious amounts of facial fuzz emanating from the sides of their faces: both ride bikes, both take a refreshingly outspoken attitude to their work, and both have the common touch that has endeared them to followers of their sport. Although, to note an important diversion, where Wiggins’ musical love is Paul Weller, Martin is a few bpm slower given his obsession with The Stone Roses.

But it is the peculiarity of Guy Martin’s story that has made the 32-year-old the most implausible of celebrities. People just can’t get enough of him. The annual Isle of Man TT, one of the most prestigious (and dangerous) motorcycle races in the world, has become a yearly Martin love-in – this year he celebrated a decade of competition by landing second place on the podium in the opening Superbike race before securing another podium finish in the prestigious Senior TT event.

“It wasn’t meant to be this year but, as usual, it was a great buzz,” he begins. “The bike was doing incredible things and if ever second place felt like victory, this was the time.

“And of course, there’s always next year. There will always be ‘next year’,” he laughs.

Away from the tarmac, Guy’s various television commitments have led him into several presenting roles, while the film Closer to the Edge - narrated by Oscar winner Jared Leto - documents the popularity of the Isle of Man TT using the rider’s everyman appeal as its central crux.

All this, remember, from a truck fitter hailing from the unglamorous English town of Kirmington, located in the sparse, open, treeless flats of eastern England. Actually, considering the terrain around which he was raised, it’s perhaps unsurprising that Guy developed an inherent passion for speed.

Extensively told in his forthcoming memoir My Autobiography, the Martin story is one of irreverence, ambition and defiance in the face of danger. The son of a motorcycle racer, he attributes his devil-may-care viewpoint to wanting to grow up different from his father.

“Don’t get me wrong, I love my dad,” he says. “He’s a great bloke and I owe him so much but I used to do weekend work for him when I was younger and he was so big on routine -

“I JUST WANT TO GET OUT

THERE AND DO IT. IT HAS TO BE ALL ABOUT THE THRILL AND THE FEELING OF ACHIEVEMENT AND ACCOMPLISHMENT.” everything had to be done to the ‘nth degree’, so precise.

I always used to think, ‘whatever I end up doing, I don’t want to be like that’.

“And I think that is what has made me the way I am.

I have no attention span. I can’t concentrate on one thing for too long. I am a rebel against the routine.

“But there is loads that I have taken from him, make no mistake – passion and dedication to name but two.”

Upon deciding to venture into racing, Guy moved to Ireland to join Team Racing and was soon winning with enough regularity to capture the attention of Uel Duncan Racing.

By 2004, he was a regular at the TT, racing variously for AIM Yamaha, Hydrex Honda, Wilson Craig Honda, Relentless Suzuki and Tyco Suzuki. To date, he boasts 15 podiums, and nearly as many broken limbs. As he is quick to remind, the daredevil is an amateur in a world of professionals, handing him the convenient pretext for any failure to perform..

December 2014/January 2015 Motor Trader | 11

“I have an excuse if I don’t win, don’t I?” he laughs.

“If I lose then I can just go ‘what do you expect, I’m a mechanic’. If I do beat the bigger boys, I can say ‘how can you not beat me, it’s your job!’”

His own day job, regardless of what the perception might be, reveals how Guy makes the majority of his wage. He might describe the minutia in a mundane manner - “I get up at 5 in the morning, I eat my porridge, I bike it to work, I do my work and I bike it home,” - but he takes pride in his craft.

“The way I see it, we are like the Ferrari dealers of the truck world,” he says “My job is to do the general maintenance – all of the stuff that keeps vehicles on the road legally. So because of that, I can only practise in the evenings. I take a fortnight off when it is TT time, but as far as full-time commitment goes, that is all I can afford.”

Guy modestly puts to one side his TV commitments – from boatbuilding to documentaries on the industrial revolution to breaking motor-paced cycling records. It’s a package that goes well beyond the day job.

Yet if his commitment away from TT racing is constrained, on the track it is unwavering – this is someone who sees the hazards as part of the fun.

“If you don’t get it right, you’re dead, aren’t you? What else is left in this world? I know a lot of people get killed in TT, but what are you going to do? Just give up? I just want to get out there and do it. It has to be all about the thrill and the feeling of achievement and accomplishment.”

So the prospect of death - two people died in this year’s event alone - is not of any due concern?

“THERE’S NO POINT MOANING

ABOUT WHAT YOU’VE GOT OR WHAT YOU HAVEN’T. SOME PEOPLE ARE BORN WITH A SILVER SPOON AND OTHER PEOPLE AREN’T; THAT’S HOW LIFE IS. IF YOU WANT TO ACHIEVE SOMETHING THEN GO AND DO IT.”

12 | Motor Trader December 2014/January 2015

“That’s all part of it. I can’t do anything about that; we well know the risks. Nobody’s making them do it, are they?

These days, everything that we can do is being suffocated by health and safety. The world is being sanitised. But the TT isn’t. The health and safety brigade haven’t got to them yet, and that’s what I love about it. You can ride it as hard as you want. You know that if it doesn’t go right then it’s going to get messy. But that’s where the buzz comes from.”

Speaking like this, Guy’s injury record is no surprise.

Over the years, he has broken ankles, wrists and thumbs, but nothing on the scale of his 2010 crash: racing on the Isle of Man, he shattered his back and eight ribs. He didn’t mind as he was “pushing hard” and was back working on the trucks just five weeks later.

“I was bored. So I wanted to get back to work. And then after about a week at work I wanted to get on the bikes.

I had to go on mountain bikes for a while as the surgeons wouldn’t let me race, but as soon as they gave me the green light I was back out there.”

This apparent disregard for his wellbeing, and the welcoming of danger, is essential to the racer’s appeal.

That, and the hefty sideburns that are now just as much a trademark. He says he doesn’t mind the attention they receive. “Not at all. I’ve had them since I was 16, although a gust of wind would have blown them off back then. I even went around with only one sideburn once - a lad pinned me down drunk after we’d been racing in Australia and shaved one off. They thought I’d shave the other off. But I didn’t.”

Winning the TT next year, he says, would be great – he’s come so close in the past. But that isn’t what motivates him… “To be honest, my ultimate goal in life is to be happy, nothing more than that”, he says. “And I am a big believer in life that you only get out what you put into it.

“There’s no point moaning about what you’ve got or what you haven’t. Some people are born with a silver spoon and other people aren’t; that’s how life is. If you want to achieve something then go and do it. What’s the point spending whatever time you have moaning about the hand that life has dealt you and how hard done you are? That time could be spent working towards a goal, doing something with your life. That’s clear as day to me.”

News

MTAQ GAINS FEDERAL REGISTRATION AS AN EMPLOYER ORGANISATION T HE MOTOR TRADES Association has been a registered employer organisation in the Queensland Industrial Relations system since 25th March 1949 when it was first registered in the name Queensland Automotive Chamber of Commerce. On 23rd September 1976, the name changed to Queensland Motor Industry Association, Union of Employers then on 5th September 1985 changed again to Motor Trades Association of Queensland, Union of Employers.

The final change to the name occurred on 5th September, 1997 when it went to Motor Trades Association of Queensland, Industrial Organisation of Employers.

For most of the life of the Association its involvement in industrial relations was almost totally State based with very little

involvement in the Federal Industrial Relations system. That changed in the late 1980’s with the deregulation of petrol retailing which made a move to the Federal awards for our service station members imperative, given the greater flexibility provided in the Federal award in a deregulated environment. The Association was able to arrange with one of its sister organisations a means by which those service station members could obtain coverage of the Federal Award while still leaving the bulk of the membership covered

by State award.

A further issue relating to conditions of employment for motor vehicle salespersons saw a large number of our dealer members also seek federal award coverage using the same arrangement. With the advent of the Fair Work Act, the industrial relations landscape changed

dramatically with all businesses being taken into the Federal system – leaving involvement in the State system basically reduced to trading hours matters.

Up to now the Association has been a “Transitionally Registered Organisation” in the federal system - which allowed it to represent member’s interests in all industrial relations matters.

From Wednesday 26th November, 2014 the Association has gained full Federal registration in its own right as an employer organisation.

While the practical differences between the transitional registration and full registration are negligible, the Association now takes its place along all other federally registered employer organisations in the name of Motor Trades Association of Queensland Industrial Organisation of Employers.

Workforce Development Helping business plan for the future One of the difficulties facing small businesses is ensuring that their employees have the necessary skills to meet the future demands of the business.

As part of Auto Skills Australia’s ongoing commitment to the automotive industry we have prepared a Workforce Capability Check List that can be used by you. It takes about 15 minutes to complete and is designed to help you analyse, review and develop appropriate strategies to assist your business to meet its performance and productivity targets through growing the skills of your workforce.

For further information in accessing this free service contact: Greg Bayliss (03) 8610 2519 gbayliss@autoskillsaustralia.com.au John Scott on (03) 8610 2509 jscott@autoskillsaustralia.com.au

SETTING THE STANDARDS FOR AUTOMOTIVE SKILLS DEVELOPMENT This service is being provided with the assistance of funding provided by the Commonwealth Government through the Department of Industry.

December 2014/January 2015 Motor Trader | 13

Australia's Best Cars The Mercedes-Benz C200

JUDGES’ CHOICE 2014

MERCEDES A CLASS ABOVE “ A FTER EXTENSIVE TESTING of 220 cars by some of the nation's top motoring experts, Australia's best cars were announced in November at a glittering ceremony at Brisbane's Royal International Conference Centre.

An event organised by the nation's motoring clubs, including the RACQ, the awards are designed to assist motorists with their car buying choices by recognising manufacturers producing quality vehicles, and the initial 220 cars were whittled down to 45 finalists across 15 categories.

"Australia's Best Cars is the nation's only consumer-focused car awards program and also differs from others because of the rigorous and independent judging process," said RACQ Group CEO Ian Gillespie.

"It's an important event, not just for motoring clubs and vehicle 14 | Motor Trader December 2014/January 2015

AUSTRALIA'S BEST CARS PROGRAM CONTINUES TO RECOGNISE AND AWARD MANUFACTURERS THAT PRODUCE HIGH QUALITY, SAFE AND AFFORDABLE VEHICLES.” manufacturers but for the country's 15million motorists as well.

"Australia's Best Cars program continues to recognise and award manufacturers that produce high quality, safe and affordable vehicles."

Representatives from NRMA, RACV were on hand for the announcements, as were representatives from the major car manufacturers, interstate motoring clubs, road safety advocates, the Queensland Police Service, industry bodies, auto retailers as well

as members of the media.

Of those manufacturers, Volkswagen did spectacularly well, securing three awards directly - Best Small Car under $35,000 for the VW Golf 90TSi Comfortline, Best Sports Car under $50,000 for the Golf GTi and Best AWD SUV $64,000-$125,000 for the Touareg V6 TDi - while having a hand on two more thanks to their interests in Skoda, which picked up the Best Medium Car under $50,000 gong for the Octavia 103TSi Ambition Plus, and Audi, which secured the Best Small Car over $35,000 for the A3 Sportback TFSI COD. Reflecting on the company's success, Volkswagen Group Australia’s Managing Director, John White, said in a statement that: “It is without doubt a great honour to receive these accolades for our multi-awardwinning products.

FIRST BMW i3 BOUGHT

BY IPSWICH COUPLE BEST SPORTS CAR UNDER $50,000 2014

The Volkswagen Golf GTi won the Best Sports Car under $50,000 award for the second year in a row

“The Golf has been such a great success both here and around the world, we only wish we could secure more vehicles to meet the demand.

“Our Touareg continues to deliver year after year and we are very pleased the judges agree that it remains the benchmark in its class.”

The main award, the Judges Choice award, went to Mercedes Benz for the C Class model C200.

To be considered for the Judges' Choice award, a car must have a high safety score, be fuel efficient and be priced below the luxury car tax

threshold - in other words it has to deliver a package of value for money, safety, innovation and driveability.

“The judges had the difficult task of narrowing down the 45 finalists to 15 winners,” said Chief Judge Mark Borlace. “This car performed well in all areas making it a benchmark vehicle which will influence the direction of its competitors.”

November has been good for the C Class Mercedes. Earlier in the month, the C Class also picked up the inaugural Carsales.com.au Car of the Year award.

AUSTRALIA'S BEST CARS 2014 Best Micro Car

Mitsubishi Mirage ES

Best Light Car

Renault Clio Expression TCe 120

Best Small Car under $35,000

VW Golf 90TSI Comfortline

Best Small Car over $35,000

Audi A3 Sportback TFSI COD

Best Medium Car under $50,000

Skoda Octavia 103TSI Ambition Plus

Best Medium Car over $50,000

Mercedes-Benz C Class C200

Best Sports Car under $50,000

VW Golf GTi

Best Sports Car $50,000 - $100,000

Mercedes-Benz A 45 AMG

Best Small 2WD SUV under $35,000

Nissan Qashqai ST

Best AWD SUV $45,000 - $65,000

Hyundai Santa Fe Highlander

Best AWD SUV under $45,000

Subaru Forester 2.5i

Best AWD SUV $65,000 - $125,000

VW Touareg V6 TDi

Best 4x4 Dual Cab Ute

Ford Ranger XLT

Best Family Wagon

Citroen Grand C4 Picasso

Best Large Car under $70,000

Holden VF Commodore SV6 Mercedes-Benz C Clas C200

Judges Choice

QUEENSLAND’S FIRST ALL electric luxury car hit the streets at the end of November when Ipswich couple Howdie and Ruthie Farrar picked up their new car from Brisbane BMW. And it seemed appropriate that the owners of the first all electric i3 in Queensland should be the owners of a battery business in Ipswich.

“My wife and I are avid BMW fans, and being in the battery business I have followed BMW’s development into the efficient dynamics and electric car market for some time now,” said Mr Farrar. “So I was very excited when we got a call from the guys at Brisbane BMW letting us know they would have some of the i3s arriving soon and that we should come and check one out.

“My wife Ruthie was a bit unsure initially. However, within about half-an-hour of checking out the BMW i3 we both were so taken with the car that we decided to buy one.

“Our decision to buy the new i3 is, for us, about joining the next generation and future of motoring mixed in with our desire to purchase a luxury car, so we are stoked with the purchase.”

The i3 arrived in Australia in November and starting at $63,900 plus on road costs, it boasts customary BMW luxury and performance and delivers a range of around 150km.

The Farrars invested in a range extender ($6,000) for their new purchase, which adds a small petrol engine to the i3 to extend the range to around 300km.

Brisbane BMW is one of only four BMW dealerships in Australia to sell the i-brand, which consists of the luxury BMW i3 and the larger, sportier BMW i8.

Howdie and Ruthie Farrar with their new BMW i3

December 2014/January 2015 Motor Trader | 15

MAKE: HOLDEN MODEL: 1956 FJ UTE ENGINE: 3.8 LTR SUPERCHARGED V6 OWNER: JEFF MANN FAMILY-OWNED SINCE: 1971

An

FJ Beaut

T

IME IS A curious thing. It never stops, we can't outrun it, and it has the remarkable effect of changing objects that were once considered 'runof-the-mill' and ordinary into something rather special.

Take the FJ model Holden, for example.

Launched in 1953, it was the replacement for the FX the first, all-Australian car - and it shared not only the FX's basic shape but other features too, including the powertrain and a reputation for ruggedness, low maintenance costs and good fuel economy.

Add these elements to a feeling of post-WWII recovery and optimism that swept the nation and the FJ became extremely popular - a symbol of change. And with a model range that included a Standard Sedan, a Business Sedan, the 'Special', a Panel Van and a Utility, just about every requirement was covered and the FJ became a ubiquitous sight on Australian roads. It was the first car many families owned and nearly 170,000 were sold during the model's three year lifespan.

A basic, affordable, ordinary vehicle then? Hardly. In the 60 years since it was introduced, Time has turned the FJ into a true classic - an Australian original that transcends its humble background. It is part of Australia's cultural history, as synonymous with the fifties in this country as rock 'n' roll, ten pound Poms, and the advent of television.

MTA Institute of Technology trainer Jeff Mann owns a slice of that history with this absolutely stunning FJ. A project that Jeff worked on for many years with his late

16 | Motor Trader December 2014/January 2015

father, the 1956 FJ has been in the family since 1971.

"Dad bought it off a local bloke because it was going to cost him more to fix it than it was worth," says Jeff. "My father bought it from him for $120 plus rego and used it for carting gravel and stone about when he was building the family house. That's what it was used for."

The FJ filled the role of family 'carthorse' until 1994 when Jeff's father decided time had come to take a closer look at the venerable old Ute and a restoration might be in order.

By this time, Jeff was a qualified mechanic and his involvement in the evolution of the FJ started at that time.

"In 1994, dad had it repainted but it was still basically stock with the factory six-cyclinder grey motor," says Jeff.

"In 1996, he decided to restore it further, so we changed the motor to a 186 Red motor with a 350 Holley carburetor, a disc brake front end and an HR rear end. We improved the power to around 200hp.

"But dad wasn't happy with that," adds Jeff. "So, in 2001, we pulled it apart again and now it has a 3.8-litre Supercharged V6 Commodore motor. It still has the HR front end but has Commodore outriggers and differential in the rear. We also moved the shift from the floor back to the column, built a

bigger fuel tank and put on 16-inch wheels.

"I was working away alot during that build so we took it to Pat Gardiner's at Moree. They did the front end, changed the steering over from a steering box to a steering rack, and did the V6 and auto conversion. I finished off all the bits and pieces - the wiring, rebuilding the alternator and so on."

For the paint work, Jeff and his dad hit a stroke of luck when searching for that beautiful mint green colour.

"The paint work is the original colour," says Jeff.

"We pulled the glove box out one day and it had paintwork, still in pristine condition, underneath it. We took a sample of that and matched it."

The hard work that father and son put into the car, and the care with which Jeff treats it (he doesn't, for example, take it out in the rain or when it's windy) certainly paid off with the FJ racking up a number of trophy wins at car meets and competitions.

"I take it to meeting of the FX/FJ Club at Rocklea once a month,"says Jeff. "And I'll take it out once a week around the block to give it a run, but I'll have to spend a bit of time and money on it before I get back into the shows. We picked up nine or ten trophies early on but I haven't done so many shows recently and it is a tough category - one show I went to recently had 52 FJs!" Jeff 's plans for the FJ are exciting with a massive increase in power high on the agenda.

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.

"My plan is to modify the engine," he says. "It's got around 300hp at the wheels now and I think, if I do things right, I should be able to get 500-600hp!"

Whatever Jeff does, one thing can be certain - the FJ will not be leaving the family's possession.

Like many classic car owners, the reason for owning the car is due to a strong emotional bond. And for Jeff, that bond is stronger than most.

"Dad passed away three years ago," he explains. "We used to spend a lot of time working on the FJ and I have alot of memories of us working on it together.

"Some people have photos, jewellery or other trinkets that they have to remember someone - to me it is the car.

I'd never sell it. To me, because of the bond with my father, it is priceless."

December 2014/January 2015 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 to facilitate this process in the event of a consumer complaint.

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

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

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

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

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

• 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.

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

• 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.

The highly experienced team at Australian All Energy Solutions provide the most cost-effective and comprehensive solar power packages for any business.

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 President's Ball 2014 23 Training matters 26 Member profiles

JONLIN AUTOMOTIVE ENGINEERS LIBERTY BUDERIM PLANET SMASH REPAIRS QLD

28 Industrial relations

EMBERS OF THE automotive industry donned their finest attire in November to attend the MTAQ's annual President's Ball.

Held at the Brisbane Hilton Hotel, the event was a celebration of a challenging and rewarding year - one that saw the MTAQ work successfully on a number of issues in support of the industry - and more than 200 guests enjoyed an evening of fine food and entertainment.

The evening was hosted by MC Peter Kelly and speakers included David Fraser, President of MTAQ; Suncorp Group's Brett Wallace; Dale Durden from the Capricorn Society and Leeanne Turner from MTAA Super. It was a most enjoyable evening, with guests enjoying a three-course meal and drinks while being entertained by the band Groove Elements.

While the accomplishments of the MTAQ were mentioned during the evening, the night also focused on the legacy of Sir Jack Brabham.

A short video was played,

highlighting the wonderful accomplishments of the great Australian, and marking the Association's acknowledgement of his passing and the role Sir Jack played in inspiring young Australians and the MTAQ itself.

It was also a night at which the extremely high calibre of students training with the MTA Institute of Technology was recognised and honoured with the announcement of the 2014 Apprentice of the Year.

Ms Leeanne Turner, CEO of MTAA Super was on hand to announce the recipient of the award and the honour, and the $2000 prize money, went to Sarah Gale, a 23-year-old second-year light vehicle apprentice from Rego's Mobile Mechanical Services in Atherton, North Queensland.

The delighted Sarah said she would spend the award money on a new toolbox, but to warm applause from those in attendance Michael Kennedy, from Brisbane Motor Auctions, offered to supply her with a new toolbox so she could spend the $2000 on „ Left: Peter Kelly was the MC for the evening's festivities.

Below: MTAQ President David Fraser started the evening with his opening address

December 2014/January 2015 Motor Trader | 19

E S S E N T I A L S

MEMBERS

INDUSTRY CELEBRATES AT MTAQ BALL M

M E M B E R S

President's Ball 2014

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

President's Ball 2014 something not work-related. (Read more about Sarah on page 22).

The night also saw MTAQ introduce two new awards - the Innovation Award and the Community Award.

The Innovation Award was created to recognise MTAQ members who had introduced new ideas into their business, be it novel incentive programs or efficiency methods, new products or services or new building or environmental projects.

The nominees were A1 Mobile Mechanics, Currumbin Paint and Smash Repairs, Gold Coast Suspension Steering and Brakes, Motorcycles R Us and Gemini Accident Repair Centres, with the award going to Frank Teggart from A1 Mobile Mechanics for his cuttingedge CM4000 jump start pack.

The Community Award was created to recognise MTAQ members involved in their community beyond the boundary of their business - be it via charitable works, fundraising, volunteering or direct work in the community.

The nominees were Brisbane Motor Auctions, Cricks Auto Group, Dalby Engine Rebuilders, Gemini Accident Repair Centres, Planet Smash Repairs, Sommerville Smash Repairs and Maranoa Mechanical, with the award going to Crick Auto Group for their two major initiatives - the Crick Eastham Foundation aimed at raising funds for charities that support children, the community or the fight against cancer; and the 'Crick 12 Lives' initiative that aims to help change the life of someone in the community.

Keeping to the charitable theme, the generosity of members was on show during the auction of a signed 2014 Qld Maroons jersey, proceeds of which go to Youngcare, a charity which offers support for young people with care needs. Some vigorous bidding resulted in Michael Kennedy snapping up the jersey for $2850 with Joe Walsh from the Gemini Group pledging to match that amount.

It was a magnificent night and a fine way to celebrate another extraordinary 12 months for the industry.

See you all again next year!

20 | Motor Trader December 2014/January 2015

INNOVATION AWARD

M E M B E R S

Leeanne Turner from MTAA Super with the MTAQ Apprentice of the Year for 2014, Sarah Gale

E S S E N T I A L S

Frank and Mary Teggart with the Innovation Award

Awarded to A1 Mobile Mechanics for the CM4000, a jump start pack developed by business owner Frank Teggart.

Taking into consideration all the new technology used in vehicles today, the CM4000 has built-in surge and spike protection and has the ability to jump start cars even when the clamps are placed back-to-front.

COMMUNITY AWARD

Don Holden accepted the Community Award on behalf of the Crick Auto Group

Awarded to Crick Auto Group for the two major initiatives they launched to support their local communities. The Crick Eastham Foundation is committed to raising funds for charities that support either kids, the community or the fight against cancer. The ‘Cricks 12 Lives’ initiative aims to help change the life of someone in the community. Members of the public nominate people in need, and Cricks 12 Lives chooses one person every month to help.

December 2014/January 2015 Motor Trader | 21

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

MIT TRAINER PROFILE

President's Ball 2014

Apprentice of the Year 2014

SARAH GALE IS MTAQ'S APPRENTICE OF THE YEAR F OR 23-YEAR-OLD SARAH Gale, to say being announced as the MTAQ Apprentice of the Year for 2014 came as a shock is to make a severe understatement.

The second year Light Vehicle apprentice with Rego's Mobile Mechanical Services travelled from Atherton in north Queensland to take her seat at the President's Ball and wait nervously to see if her name was called.

"It was pretty amazing," said Sarah of the announcement. "I was hoping I would get it but it was a shock!"

And it wasn't just Sarah who sat nervously. Her parents and her boss Clint Reghanzani, with partner Nicole, had made the trip, and there was family who couldn't make it to the Ball who were waiting anxiously for news.

"Mum was smiling from ear to ear when they called my name," said Sarah. "But when I got back to the table Dad had disappeared. He'd gone outside to call my family in Tasmania who were all at my Granddad's house!"

KEITH MINCHIN

For Sarah's boss, Clint Reghanzini, to see his charge take out the award was a proud moment and one he said recognised Sarah's commitment to work and training. ""It was a great feeling," he said of Sarah's win. "Her work ethic and commitment is unbelievable. She just won't give up - she'd stay at work until midnight to get a job done."

For Scott Buckley, Sarah's trainer

at MTA Institute of Technology, her award is well-deserved.

"I was very happy when I heard," said Scott. "She has a great knowledge base, Clint is a great teacher and, importantly, she asks questions. She's easy to train!"

A $2000 prize was part of the Apprentice of the Year Award and when accepting the money Sarah mentioned she would likely spend it on a new toolbox.

Michael Kennedy, from Brisbane Motor Auctions, generously offered to buy Sarah a toolbox so she could spend her winnings on something else but the young apprentice was non-commital on what she might spend the money on now - something work-related still seems the clear favourite.

As for where she goes next, Sarah has plans for her long-term future.

"I want to stay with Clint for a few years - to learn more and say 'thank you' for giving me an apprenticeship," she said. "One day though, I would like to start my own business."

I have a strong technical background in mechanics and electronics.

and weaknesses. This is an advantage of one-on-one training in the workplace.

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

Why should someone consider a career in the automotive industry?

I started in October 2012.

The automotive industry is diverse and can lead to careers in a wide range of fields such as sales, marketing, motorsport, management roles, etc.

Apprentice of the Year Sarah Gale receives her $2000 prize from Michael Kennedy of Brisbane Motor Auctions and MTAQ President David Fraser

What geographical area do you service?

The metro west region which usually takes me anywhere from Milton out to Ipswich.

What is your specialised area?

Automotive Mechanical.

What is your background in the automotive industry?

I have worked in the automotive mechanical industry since 1976. I began working in general automotive and light truck repairs, moved on to work for Mitsubishi and then with Ferrari and Maserati in various roles.

22 | Motor Trader December 2014/January 2015

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

I have always found technical problem solving, participating in training and training staff the most satisfying aspects.

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

Training must be relevant and interesting.

It’s important to get an understanding of the students likes and dislikes, strengths

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

An apprenticeship is the beginning. If you have the desire, an automotive career can take you anywhere in the world.

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

For the last couple of years I’ve been renovating and landscaping. When I had spare time, four-wheel driving & camping.

I’ve also done a bit of pit crewing for a couple of race drivers/teams.

HE FIRST GROUP of students from the South Korean region of Daejeon have completed their four-week training program at the MTA Institute of Technology's (MIT) training facility.

The ten students will now spend until mid-December completing the third part of their training course - four weeks of combined practical work at MIT plus work experience at the dealerships of the multi-franchise Bryan Byrt Group, Q Ford in Brisbane and Bremer Ford in Ipswich. The work experience will expose the students to work on a variety of automotive makes including Ford, Suzuki, VW, Renault, Nissan and Skoda.

The students are the first to be involved in a special training program designed by MIT for students from the Daejeon region - a program organised in conjunction with education consultancy group Smart Education Training Australia(SETA) and the Daejeon Metropolitan Office of Education.

The four weeks at MIT's workshop proved to be an invigorating experience for both the students and for their trainer Jeff Mann - though the students had completed an intensive English language course their grasp of English, though good, required an interpreter be on hand to assist for part of every day.

"The language barrier got easier with time," said Jeff. "But you have to be thorough, clear and be certain they understand. I even got them to repeat things back to me to make sure.

Having Chloe, the interpreter, here was very useful."

And the students had to be on their toes and concentrating, for there was plenty for them to learn.

"They have been training in Cert I Light Vehicle Automotive,"said Jeff.

"And we've had them working hard.

"They've been doing basic servicing including brakes, wiper blades,

The students from the Daejeon region of South Korea with their translator (left) and trainer Jeff Mann

changing fuel and air filters, checking lights. We've have had them pulling out engines and gearboxes so they can get an understanding of what components are part of an engine, and we've had them doing theory too, including learning about the environment, about tools, a little about electrical and, of course, mechanical fundamentals."

But, though the students have been working hard, it has not been all about work. One Friday night, Jeff took the group along to a drag racing meet at Willowbank Raceway.

"They are a nice bunch of kids and they loved the drags. I think it was a bit of an eye-opener for them," he said.

For student Jae Hyeok Do, the drag racing was part of a wider, exciting experience. Keen to come to Australia,

he heard about the course while at High School.

"I was interested in coming to Australia," he said. "To come to another country and another culture different to my own. The training has been difficult but enjoyable and I am keen to learn and have more practical experience."

And the students are now enjoying that practical work, with MIT trainers keeping in touch with them, ensuring they enjoy their learning experience.

"They'll be working in dealerships, working with tradesmen," said Jeff.

"It will be very interesting for them."

The students will be returning to South Korea with a Certificate I in Light Vehicle Automotive - recognition of their training in basic automotive fundamentals.

"It is a pre-vocational step," said Jeff. "If they choose to go further then they can use this experience and their certificate as evidence they have had some mechanical training - they may even come back here to complete Cert II, III or IV." It is hoped that co-operation between MTAQ, SETA and the Daejeon region will grow and that this group of students will be the first of many from South Korea.

December 2014/January 2015 Motor Trader | 23

E S S E N T I A L S

MIT PLAYS HOST TO SOUTH KOREAN STUDENTS T

M E M B E R S

Training matters

MTAA SUPER CELEBRATES 25 YEARS THIS YEAR MTAA SUPER REACHES A SIGNIFICANT MILESTONE - THE CELEBRATION OF ITS 25TH ANNIVERSARY. started to yield results, results that are winning industry recognition.

MTAA Super has been recognised by its peers with three prestigious awards in the past year: • Fund Executive of the Year awarded to CEO Leeanne Turner • AIST Trustee of the Year awarded to Chair John Brumby, and • AIST Super Investment Award for Excellence awarded to Executive Manager Investments – Philip Brown There is no doubt the Fund has had its ups and downs, particularly in the last five years, but MTAA Super celebrates 25 years in a very good position with over 265,000 members and more than $7.5 billion in funds under management According to Ms Turner, “one of the great things about super is that people’s savings are invested long term by super funds in job-creating infrastructure and property. These are assets that generate economic growth for Australia and jobs for Australians. Investment in infrastructure is critical and MTAA Super has been an industry leader in this with its holdings in assets such as the RG Casey Building and 121 Marcus Clarke Street, and Sydney and Brisbane Airports”.

The Fund is particularly proud of its close relationship with and support for the automotive industry. It grew out of this industry and retains a very close partnership with it to this day.

In the 2013/14 financial year MTAA Super launched its Pathways program, a unique program designed to celebrate and educate the broader public about the many and varied career paths available in the automotive industry.

Initiatives like sponsorship of the V8 Supercar series and the Apprentice of the Year Awards are aimed at encouraging young people to understand the vast array of opportunities that exist in the automotive industry. While the flagship 'readthesigns' program with Lifeline Australia is aimed at reducing the impact of mental illness and suicide within the industry.

“It is critical that we strongly support and promote our industry as it undergoes major changes, both the difficult changes that have come with the winding down of car manufacturing in Australia, as well as the positive opportunities that exist in an industry that is being transformed by technology and innovation” said Ms Turner.

This document is issued by the Motor Trades Association of Australia Superannuation Fund Pty Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913, SPIN MTA0100AU). Motor Trades Association of Australia Superannuation Fund Pty Limited has ownership interests in Industry Super Holdings Pty Ltd, ME Bank Pty Ltd and Superpartners Pty Ltd. The information provided is of a general nature and does not take into account your specific financial needs or personal situation. You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415. You should consider the relevant PDS in making a decision.

20140164

MTAA Super was established in 1989, four years following the National Wage Case when the ACTU secured a 3% employer superannuation contribution to be paid into an industry fund. Before the National Wage Case and the establishment of Industry Super Funds in the late 80s the only people to have super in Australia were predominantly white collar workers.

Fast forward 25 years and most people retiring today have accumulated savings for the majority of their working lives. This is an extraordinary and transformational achievement, and being one of the first Industry Super Funds to be established, MTAA Super is part of that story.

In fact, MTAA Super is proud to boast a number of firsts. It was among the first funds to give members investment choice, and one of the first industry funds to adopt a board structure of three employer, three member, and three independent directors, and in doing so rising to industry best practice and greatly strengthening governance and accountability.

The numerous reforms put in place by the Fund in the last few years have

M

ER

A SUP A T

The industry super fund for the automotive industry

121 Marcus Clarke Street, Canberra

BOOST YOUR $UPER Win $5000 into your super by rolling over or contributing

$

FIND YOUR LOST SUPER We’ll help you consolidate and boost your super balance

mtaasuper.com.au

SUPER ON THE GO Check your balance, insurance cover and investment choices

Photos 1 & 2: Honor Luckhurst

“MTAA 25 YEARS IN A VERY GOOD POSITION Low fees*SUPER . Run CELEBRATES only to benefit members.

WITHof OVER 265,000 MEMBERS A range investment optionsAND MORE THAN $7.5 BILLION FUNDS UNDER MANAGEMENT” Award winningIN industry leadership

Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238 718) is the Trustee of MTAA Superannuation Fund (ABN 74 559 365 913). You should consider whether or not MTAA Super is appropriate for you. The MTAA Super Product Disclosure Statement (PDS) can be obtained by calling us on 1300 362 415. You should consider the PDS in making a decision. * All fees are below the Industry Average and received a “Leading” trend assessment. Source: Latest SuperRatings Benchmark Report

Jonlin Automotive Engineers Location: Coorparoo, Qld Type of business: Mechanical repairs – specialising in power steering and 4x4

M E M B E R S

E S S E N T I A L S

Member profiles

Number of employees: 8 Trading since: 1982 MTAQ member since: 2013

Jonlin Automotive Engineers

Liberty Buderim Location: Buderim, Qld Type of business: Mechanical Repair Service Centre Number of employees: 5 Trading since: 2000 MTAQ member since: 2000

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

What has been your proudest business achievement to date?

From an existing member.

Growing from a single-bay workshop to a five-bay shed covering every aspect of mechanical repairs.

How has being an MTAQ member benefited your business?

Technical support.

What is the best thing about working in your industry?

Achieving the best outcome for our customers.

Planet Smash Repairs Qld Location: Warana, Qld Type of business: Smash repair Number of employees: 24 Trading since: 1991 MTAQ member since: 2006

Planet Smash Repairs Qld

26 | Motor Trader December 2014/January 2015

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

Word of mouth.

My proudest achievement to date is having owned and operated a successful motor mechanic business for 32 years.

The best piece of business advice I can give is ‘To be honest to your customers'.

How has being an MTAQ member benefited your business?

MTAQ has given us the confidence to provide our employees and customers with relevant industry information to ensure our future success.

What is the best thing about working in your industry?

The best thing about working in the motor industry is having the ability to fix something that is broken.

What would you say to someone thinking about joining MTAQ? Businesses within the motor industry require the most current industry information, specifically around issues relating to industrial relations and business advice, to ensure survival and future success.

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

Monitor cash flow and maintain diverse aspects of vehicle industry, covering electrical body, drive train, and extensive electrical diagnostics.

What would you say to someone thinking about joining MTAQ? Very worthwhile membership, support and tech advice.

Liberty Buderim

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

What has been your proudest business achievement to date?

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

On purchasing our first smash repair business the previous owners highly recommended becoming a member.

Working with the ‘team’ currently on continual improvement, seeing them all have a real good go, and enjoying it!

The only constant is change – deal with it!

How has being an MTAQ member benefited your business?

What is the best thing about working in your industry?

Gives us a sense of belonging and a thorough range of advice and ongoing technical updates relevant to our industry.

The people - both our clients and the team we work with. Watching the business grow and develop.

What would you say to someone thinking about joining MTAQ? Excellent bang for your buck!

December 2014/January 2015 Motor Trader | 27

E S S E N T I A L S

What has been your proudest business achievement to date?

M E M B E R S

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

2015 Retail Motor Trade Diary THIS QUALITY DIARY FEATURES: ✷ Professional design complete with gold corners and stitched spine backing ✷ Important telephone numbers and contact details ✷ 30 minute per day time slots ✷ Day by day planning

Member’s price $22 (GST inclusive) plus postage and handling.

Non Member’s price $25 (GST inclusive) plus postage and handling.

TO ORDER: Just fax this completed form back to MDocs at MTA-Q on (07) 3844 4488, OR email mdocs@mtaq.com.au Please supply: ____ copies of the 2015 Motor Trade’s Diary at TOTAL $

(Plus postage and handling)

Company Name: Address: Postcode: Phone: (

)

Fax: (

Contact Name:

)

Date:

MTA-Q Member: Membership number/Account number: Capricorn Account number: Please bill to my account OR see payment details below Method of Payment: Cheque (Payable to MTAQ) / MasterCard / Visa Card Number: __ __ __ __/ __ __ __ __/ __ __ __ __/ __ __ __ __/

Expiry Date: __/__

Signature:

MTA Queensland Address Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 Postal PO Box 4530 Eight Mile Plains Qld 4113 Tel (07) 3237 8777 Toll Free 1800 177 951

20120033

Name on Card:

CVN: __ __ __ /

IT APPRENTICES CONTINUE to excel and be recognised for their work with two of the the training organisation's apprentices taking out top awards from Brisbane City Council.

Luke Smith and Connor Litchfield - both third year automotive electrical apprentices with the Council and based at the Toowong Bus workshop claimed the Apprentice of the Year and Innovator of the Year respectively.

Receiving their awards from Lord Mayor Graham Quirk at a special breakfast function, both young men were stunned by their wins.

"All the nominees were at the breakfast and I didn't have any expectations," said 20-year-old Luke.

"When they called my name I thought 'Is this a joke'? It was a really big shock.

"My boss and my mum and dad were there and everyone was shocked."

For 25-year-old Connor, his Innovator award (recognition of his work in researching the fuel-scan systems on the bus fleet) came as a surprise too.

"I was the first person they called up and I was very excited," he said. "And afterwards, my mum was crying and my brother was tearing up too!"

The pair have been working at the Toowong Bus Workshop for three years and the environment there has clearly worked in fostering and encouraging talent and a sense of teamwork.

"We are a close-knit section," said Luke. "There are eight of us and we hang out together at weekends and keep in touch."

"We have each other's phone numbers and emails," added Connor.

"And the younger apprentices often ask for help from us with their books and so on."

Both Luke and Connor got into the auto-electrical trade after years spent 'tinkering' with electronics and both see a bright future for themselves,

Brisbane City Council Apprentice of the Year Luke Smith (left), MIT trainer Paul Tugwell and Innovator of the Year award winner Connor Litchfield

“AUTO ELECTRICIANS ARE A SMALL GROUP, SO YOU HAVE TO BE REALLY GOOD TO WIN.� inspiring each other as they move forward. "I really want to get into electrical engineering," said Luke.

"We are very excited about it".

"I definitely want to be involved in electrical engineering," added Connor.

"Perhaps in the security side of things designing security systems."

For the pairs' MIT trainer, Paul

Tugwell, the fact that two of his apprentices took out awards was a proud moment and recognition not only of their hard work and talent but of the importance of the autoelectrical industry.

"We don't get many awards," said Paul. "Auto electricians are a small group, so you have to be really good to win.

"These two guys have goals and want to achieve them. They're not happy just being an auto-elec and I'm happy to hear them talk about electrical engineering because they really can do it.

"I am so proud of them."

December 2014/January 2015 Motor Trader | 29

E S S E N T I A L S

MIT STUDENTS TAKE OUT TOP COUNCIL AWARDS M

M E M B E R S

Training matters

Investment matters

MARKET WRAP

M

ARKETS HAVE ENJOYED a volatile ride over the past two months. During September the Australian market sold off resulting from the end of quantitative easing (QE) and deflation concerns taking hold. However, during October we have seen a strong rebound driven by the market realisation that concerns over Ebola were overdone, geopolitical risks settling down somewhat and easing concern over economic data.

This month, we analyse the potential consequences of the end of QE and discuss the deflationary concerns.

QE is coming to an end in the US, but remains very much on the agenda in Japan and Europe. In the US, the economic outlook continues to improve, which reduces the need for ongoing Federal Reserve support.

There are increasing concerns, however, that QE is no longer working and that governments need to work out alternative ways to stimulate the economy. This is based on the persuasive argument that the low interest rates globally are actually working against fighting deflation.

Investors are encouraging companies to hand back cash rather than invest it.

Lower interest rates are compressing returns, undermining the need for corporates to borrow to invest for low returns. Furthermore, a hangover from the global financial crisis is that many of the hard won productivity improvements that have occurred globally are going to corporate profits.

Typically you would expect them to boost incomes and drive consumption, but savings rates have gone up and the pricing power of labour is low.

Keynesian economics would argue for an increase in public spending and this is always popular with politicians.

30 | Motor Trader December 2014/January 2015

“IT IS WORTH NOTING THAT MARKETS AND GLOBAL GROWTH MANAGED TO NAVIGATE A 20-YEAR DEFLATION OF THE JAPANESE ECONOMY.” This could get a re-run given the lack of momentum with QE. The US Federal Reserve’s commitment to keep interest rates near zero for a ‘considerable time’ has helped extend the recent recovery in markets, despite QE coming to an end. The two strongest ASX trades of the low interest rate period are defensive high-yielders and structural growth stories, which have seen relative valuations quickly return to historic peaks. These are two segments we are a little cautious about given that as QE fades, the valuation support that they have enjoyed could also continue to fade.

In addition, the higher PE stocks in the market have extended their premium relative to the market.

Given growth is scarce we would argue that the strongest growing firms should be able to retain a strong premium. Nonetheless, the low bond rates have been supportive of these valuations and this could unwind if bond yields normalise.

It is very surprising that as QE finishes we become increasingly worried about deflation. Poor economic data from Europe and the softer oil price triggered these concerns. We suspect Europe will need to intensify their efforts to avoid deflation, including a further round of QE and perhaps further fiscal

stimulus. However nothing in Europe happens quickly because of the bureaucratic nature of the European Union, so our expectations remain low. We are comforted however that market expectations are also low, pressure on Russia is increasing and we continue to see a steadily recovering global economy.

It is worth noting that markets and global growth managed to navigate a 20-year deflation of the Japanese economy. A US recovery, and growth elsewhere, should be enough to drive global equities provided further shocks are limited. The domestic economy has been slow since the May budget but we a see small bounce in consumer sentiment, a lower currency, a lower oil price and a government closer to finalising the budget as suggesting an improving outlook.

However, given the volatile nature of the top down economic outlook we continue to focus on finding quality companies with valuation support and are wary of those that have relied on QE to re-rate.

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.

CHARITY AIMS TO PUT A BRAKE ON ROAD FATALITIES T HE STATISTIC IS a bad one: P-plate drivers account for almost a quarter of serious road trauma incidents or fatalities - that's 300 deaths a year - yet drivers aged 17-25 account for only 13 per cent of licensed drivers.

For anyone, especially parents about to let their kids loose behind the wheel, that stat makes for uncomfortable reading. But what can we do?

Rob Duncan, a police Sergeant from South East Queensland, decided what he could do was start a charity called BRAKE - a charity that provides a school-based program teaching older children the risks associated with driving.

But it wasn't just the bare statistics that made Rob decide to do something - it was his experiences as a policeman out on the road.

"Over the years I've been to quite a few fatalities involving young people," he said. "In the area I was working - the old Beaudesert Shire - we held community meetings where we discussed the high rate of crashes and we decided we had to do something.

"I did a lot of research but could find no programs out there that were working. So, we decided to make our own."

What followed was the founding of BRAKE and the blossoming of an idea beyond Rob's wildest dreams.

"The first course was held in the community in 2007," said Rob, who is BRAKE's current CEO. "Then the Beaudesert school came on board and it grew from there. To be honest, we're surprised at the number of people asking for the program - we now have 120 schools taking part and more than 50,000 young people have gone through the course since 2007."

The idea behind BRAKE is a clever one. Provided free to schools for their Year 11 and 12 students, the course consists of eight modules and focuses on risk - driving hazards and consequences, the effects of drugs and alcohol, the attitudes of drivers and passengers - as well as safe driving practices.

BRAKE CEO Rob Duncan (centre) with Year 11 students taking part in the BRAKE program

"We don't necessarily teach road rules," said Rob. "We teach 'risk identification' and also discuss things like how we can change the dynamics in a car. We want people to learn what they can do, even as a passenger, to stop bad behaviour."

Following completion of the eight modules, students are required to complete two follow-up exams - one at three months and another three months after that - and should they complete the course they are eligible to receive one point toward their QCE. The BRAKE program is delivered by a school's teachers, with the program - the course details, lesson plans, module information - run centrally by BRAKE. It's a system that makes it more affordable for the charity to run.

"Students and teachers register online and we manage that information," said Rob. "We created a web engine to do that and provide the schools with everything from a central point. That allows us to be sure that the program being offered is the same in Cairns, Mt Isa, Brisbane, the Gold Coast

- no matter where it is taught we know it is the same program."

The rapid growth of the program clearly shows the BRAKE system works and there has been international interest with a community program held, via Skype, in South Africa.

Feedback has been positive from both children and parents and BRAKE has been recognised by the authorities too, having won two Queensland Road Safety Awards, one in the schools category and the other in innovation.

There is the possibility to push the program out to more schools as long as funding can be secured - BRAKE has received backing from government for the development of systems for teachers and students but cannot receive funding for operational costs.

"The only thing holding us back is operational costs," said Rob. "We're looking for sponsorship to help with those costs, to enable us to get a parents' program running and do more for young people - to increase our contact with them through Facebook and so on. That's the idea."

For Motor Trader, anything that changes those frightening crash statistics for the better is an idea worth supporting.

To find out more about BRAKE and sponsorship opportunities go to www. brake.org.au; email info@brake.org.au or phone 07 3297 6540 December 2014/January 2015 Motor Trader | 31

Industrial relations

Dealing with an unfair dismissal/ harassment/discrimination/ bullying/wages claim

TED KOWALSKI INDUSTRIAL RELATIONS MANAGER

S

OME MEMBERS MAY not be aware that the MTAQ is able to represent them in claims involving unfair dismissal/ harassment/discrimination/bullying and wages - lodged by present or past employees. The industrial relations department has over 35 years collective experience in dealing with these matters and can assist in dealing with all such claims.

Most issues are dealt with via telephone conferences which have either a Fair Work Commissioner or trained mediator as chairperson. Both parties are given the opportunity to explain their side of the issue, with a view, ultimately, to settling the claim without recourse to a formal court hearing. Having MTAQ assist in both the preparation and presentation of your defence can mean the difference between an acceptable resolution or a prolonged and expensive legal nightmare. A modest charge is made for the service but this charge is far less than would be charged by either a freelance advocate or lawyer.

Most claims begin life as a written submission by the employee which is sent to you for your response by the

Fair Work Commission. It is critical that a detailed and accurate response is made to ensure that the person making the complaint is left without any doubts about the issues that will have to be addressed in pursuing the claim. Unfortunately, it is only very rarely that an employer response convinces the complainant to totally abandon the complaint. Most matters involve issues in varying shades of grey rather than being clearly black and white, and hence the importance of making the most of all factors favourable to a satisfactory outcome for you, the employer.

Both the complainant and the employer can be represented at a conference so it’s important not to find yourself confronted by a solicitor/ advocate representing the employee and you with no representation.

If you a contemplating a dismissal you should always seek advice from our industrial relations department before taking any action. Always check our current age bulletin to ensure you are paying wages correctly, and, if you are in any doubt about things like overtime, call-outs, meal breaks etc call for advice.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Division

Alchemy Automotive & Performance Stephen & Stephen Crockett

Units 3 & 4, 38 Kenworth Place BRENDALE Q 4500

alchemyautomotive@gmail.com

AED

Breed Motorshop

Terrence Lister

1 Opal Lane COOROY Q 4563

Breedmotorshop@gmail.com

AED

Buderim Auto Service

Lance Collett

15 Gloucester Road BUDERIM Q 4556

admin@buderimauto.com.au

AED

Caltex Warwick

Alexander Bitancurt

13015 Cunningham Hwy SLADVALE Q 4370

admin@nadac.com.au

SSCSAQ

Dad N Daves Mobile Mechanical

Brett & Barbara Haddow

99 Railway Parade POMONA Q 4568

Chitty1@hotmail.com

AED

Southport Car Centre

Michael Bailey

51 Ferry Road SOUTHPORT Q 4215

sales@southportcarcentre.com.au

ARD

32 | Motor Trader December 2014/January 2015

Industry insight

AIM AT NOTHING AND YOU WILL HIT THE TARGET! B USINESS ISN’T THE only place for clear objectives and goals. Ask any ‘Life Coach’ and they will likely tell you, life can be greatly enhanced by having clear goals and plans to achieve them. In business they are generally referred to as ‘Key Performance Indicators’ (KPIs).

There are two types of KPIs – ‘Leading KPIs’ and ‘Lagging KPIs’. Leading KPIs are those that drive activity and results and ‘Lagging KPIs are those that measure the results.

An easy way to explain the difference is to liken it to losing weight. If you set yourself a target of losing an amount of weight the question is how are you going to get there? The simple answer is to monitor and manage your calorific intake and output. In business it’s very similar. If your goal is to improve profit and cash flow and ability to grow your business you need to work out what are the key drivers impacting results. Let’s discuss both types of KPIs.

LEADING KPIS Product/Service Development: If you want to maintain an edge over your competitors you need to have a plan to constantly develop your products and services. KPIs to ensure improvement here might be: • Number of new products/ services launched • Number of R&D projects undertaken Marketing: If you want to keep pace with the market you need to keep letting them know who you are and that you are ready to help. KPIs here could be • Number of visitors to your website or premises • Number of enquiries received from a particular marketing source • Another useful KPI to ensure a good return on investment of your marketing dollars could be cost per enquiry. This helps you to gauge the value of all marketing dollars spent

• Number of contacts on database or Customer Relationship Management system (CRM) Sales: Once you’ve got interest from the market you need to convert that into sales and ultimately dollars onto your bottom line. KPIs here could be: • Number of quotes provided • Number of quotes won • Number of quotes lost • Sales conversion rate i.e. number of sales calls made compared to those converted • Upselling rate i.e. how many add-on products/services were sold to customers Operations: When you make a sale and it’s time to deliver to your customer.

To ensure a high level of service, it’s vital to measure your operational performance. KPIs here could be: • Personnel productivity i.e. how many hours have been sold compared to those paid to service staff • Work in Progress days i.e. how many days are jobs in progress prior to finishing • Rework hours • Stock turnover rate • Level of backorders • Number of days for customers to receive orders • Product returns/complaints/defects • Hours downtime of staff/equipment • Overtime hours Customer Service: Once you have a customer, it’s much easier to retain them. KPIs here could be: • Customer retention rate • Number of new customers acquired • Number of major client visits • Customer complaints received • Testimonials acquired • Referrals received Finance: Happy customers have no reason not to pay on time, so if everything else is in order, some KPIs here could be: • Accounts Receivable Days i.e. how many days are customers taking

to pay, on average • Profit by: - Customer or type of customer - Product/Service or type of product/service - Division • Accounts Payable Days - how many days to pay your suppliers • Number of price increases or discounts given Human Resources: Happy staff provide great service to customers happy to pay. So how happy are they?

• WHS incidents/hazards • Staff turnover • Staff satisfaction • Ideas for improvement • Staff training hours/events attended • Incentive payments made

LAGGING KPIS These are mainly results oriented indicators measured both monthly and year to date such as: • Sales versus budget and last year • Gross Profit percentage versus budget and last year • Overheads versus budget and last year • Overheads as a percentage of sales versus budget and last year • Net profit percentage versus budget and last year • Current Ratio • Net equity • Sales growth percentage • Inventory Days • Work in Progress Days Notice how the list of ‘Leading KPIs’ is much larger than the ‘Lagging KPIs’?

That’s because it takes a lot to achieve a result in most businesses. Many business people tend to focus on the ‘Lagging KPIs’ and fail to measure the ‘Leading KPIs’.

For more KPI suggestions visit http://info. cfooncall.com.au/keep-your-eyes-on-the-prize-ebook to download a FREE copy of our eBook ‘Keep your eyes on the prize’ December 2014/January 2015 Motor Trader | 33

Power your BusiNess wiTh solar.

CommerCial iNdusTrial agriBusiNess

PV Solutions Solar Hot Water Solar Air Conditioning LED Lighting Power Optimisation Solar Water Pumping

28.5% SAViNG* The Time is Now for BusiNesses To save.

WiThouT SolAr

WiTh SolAr

Is the cost of energy eating into your bottom line?

Have you considered offsetting your energy cost with a solar solution?

Did you know that you can finance a solar system?

Did you know that in many cases, solar systems can become cash flow positive in the first year?

With the energy demands on the automotive industry, we are finding that solar systems have a profound impact on reducing grid energy dependency.

who is ausTraliaN all eNergy soluTioNs?

$17,892 pa

$12,800 pa

Current electricity cost (year)

Savings – $5,089 Finance Repayments (year)

*The above figures are based on a 30kW solar system, financed over 5 years for a SAC Large User tariff classification.

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.

Proud Supplier to

To find out how you can offset your energy costs with solar, call us today on 1300 137 227.

Gadi Electrical | Electrical Contractors No. 68790

Australian All Energy Solutions PO Box 6109 Upper Mount Gravatt, QLD 4122 1300 137 227 www.aaes.com.au

DMS 1401080

Depending on the tariff you are paying, solar can have a significant impact on your bottom line.