Car import changes around the corner

The government wants to ensure Australians have access to cheaper cars once our factories close. But the reason they are closing is because Australia is already the most competitive car market in the world.

The Federal Government is poised to announce controversial changes to car import laws by the end of this week, say senior automotive industry insiders.

It is feared the plan to allow private buyers to import new and used vehicles could lead to an increase in unsafe cars on the road, turn Australia into a "dumping ground", and won't deliver cheaper cars, as the government has promised.

News Corp Australia understands the Federal Government will release an outline of the plans "subject to a regulatory impact statement" by the end of this week. But the industry believes approval for the ground-breaking changes is "a formality".

Motor vehicle standards are there for a reason and we need to protect road safety and we need to protect consumers

As the Senate hearing into the automotive industry, The Future of Australia's automotive industry, was held in Canberra today, Senator Kim Carr has backed the car industry's position.

"I have very deep concerns about the safety of (private vehicle) imports," said Senator Carr. "Motor vehicle standards are there for a reason and we need to protect road safety and we need to protect consumers."

Senator Carr said the government is "doing everything it can to kill off the auto industry".

With Australia's three remaining car manufacturers due to shut their factories by the end of 2017, the Federal Government wants to ensure there is competition in the car market.

However, the reason Toyota, Holden and Ford are closing their factories is because Australia is the most competitive car market in the world and they cannot build vehicles in sufficient volumes to sustain manufacturing them locally.

Senator Carr says automotive dealers "have every right to be concerned about the changes (to vehicle import laws)".

These changes could cause job losses at dealership level

"There has been no consultation with the industry and no thought given to the consequences," said Senator Carr.

There are 68,000 people employed at car dealerships across Australia, more than double the number of those employed in vehicle manufacturing.

"These changes could affect these businesses and the livelihoods of those who work there. These changes could cause job losses at dealership level," said Senator Carr.

"We need car dealerships, they train apprentices, they develop skills, they work with technology."

Senator Carr's comments come as the car industry addressed the Senate hearing into the automotive industry, The Future of Australia's automotive industry, in Canberra today.

We underestimated the speed and magnitude of change

Richard Dudley, the CEO of the Australian Motor Industry Federation, told the hearing: "In 32 months time all car manufacturing will have ceased leaving the retail motor trades as the face of the Australian automotive industry and representing 95 per cent of all industry activity".

Mr Dudley said while the government and media focus has centred on the closure of vehicle manufacturing over the past two years, there are more jobs at risk across other parts of the industry.

"Senators, the storm is here. We underestimated the speed and magnitude of change (in the Australian car market)."

Mr Dudley said that from July 2012 to June 2013 there was the "largest reduction of registered automotive businesses observed to date".

The office for assistant infrastructure minister Jamie Briggs, who is handling the proposed changes to vehicle import rules, was contacted for comment and was yet to respond as this article was published.

Senator Carr said it was flawed for the Australian government to mirror New Zealand's policy change, which saw the average age of cars there increase since the import rules were relaxed.

"The government points to the changes in import rules in New Zealand, but there is no question the impact there was a negative one," said Senator Carr.

We don't need to become the world's dumping ground for right-hand-drive cars

"In my opinion these proposed changes raise serious safety concerns … we don't want to turn Australia into a dumping ground for used cars."

Senator Carr said the Japanese government has incentives to keep the car fleet there young so that drivers are in safer and more environmentally friendly vehicles.

"If it's good enough for Japan (to have a young car fleet) then it's good enough for Australia," said Senator Carr. "We don't need to become the world's dumping ground for right-hand-drive cars".