This paper represents the second stage of the review of the laws applying to motor vehicle dealers and motor vehicle repairers operating in Western Australia and will pave the way for establishing the Government’s future policy direction and legislative reform agenda in relation to the regulation of dealers and repairers.

The key focus of this stage of the review was to obtain stakeholder feedback vital to weighing up the costs and benefits of the various options presented in the paper and will ultimately assist in formulating recommendations to the Government in relation to future reforms. The central aim in conducting this review is to ensure that the laws which regulate the industry remain appropriate and operate in the interests of both consumers and industry.

This paper reports on the outcome of earlier consultation with stakeholders which comprised of early meetings with key industry, consumer and government stakeholders together with feedback obtained in response to the discussion paper released in August 2013. In addition, a large number of stakeholders provided responses to online surveys targeting both consumers and industry participants.

The following provides an overview of the key parts of this paper.

Part 1: Context and background to the review

The first part of this paper presents:

• An overview of stakeholder consultation.
• Background information including an industry snapshot and the rationale for licensing motor vehicle dealers and repairers.
• An overview of the current legislative framework.
• A summary of the legislative arrangements in place in other jurisdictions.
• Information about the Department’s role, including relevant complaints data.
• A discussion about cost recovery.

Part 2: Proposals

The second part of the paper identifies proposals which are considered minor and unlikely to have a negative impact on stakeholders. These proposals include:

• Amending the MVDA to require disclosure in relation to: odometer alteration or replacement; vehicles being repairable write-offs; engine replacement; and prior use of vehicles as taxis, rental or hire vehicles (page 35).
• Amending the definition of camper van in the MVDA to ensure consistency between the definitions of caravan and camper vans and avoid doubt in the interpretation of these terms (page 39).
• Amending the MVRA to remove the need to prescribe qualifications and examinations in the regulations (page 41).
• Amending the MVRA to simplify compliance requirements for mobile repairers (page 47).

Stakeholder comment is being sought in regard to these proposals.

Part 3: Options for reform

The third part of the paper considers a number of issues raised by stakeholders in response to the discussion paper released in 2013 and presents options for reform that require detailed regulatory impact assessment. The following issues are considered:

• Whether the definition of vehicles under the MVDA should be changed to include all terrain vehicles and expanded to include passenger vans with a seating capacity not exceeding 14 persons (page 52)?
• Whether the licensing of motor vehicle salespersons should continue (page 61)?
• Whether the good character and repute criteria for assessing motor vehicle dealer licence applications should be changed (page 73)?
• Whether the sufficient resources criteria used for assessing motor vehicle dealer licence applications should be changed (page 88)?
• Whether the categories of motor vehicle dealer licensing should be changed (page 97)?
• Whether a compensation fund should be introduced under the MVDA (page 121)? 
• Whether a cooling off period should be introduced under the MVDA (page 131)?
• Whether the types of repair work covered by the MVRA should be changed (page 147)?
• Whether the good character and repute criteria for assessing motor vehicle repair business licence applications should be changed (page 156)?
• Whether the sufficient resources criteria used for assessing motor vehicle repair business licence applications should be changed (page 170)?
• Whether the definition of a motor vehicle under the MVRA should be changed (page 177)?
• Whether perpetual certification of motor vehicle repairers should continue (page 181)?

For each option identified, there is a description of how it would operate and its potential benefits and disadvantages. Stakeholders are invited to respond to this part of the paper by identifying:

• preferred options;
• alternative options;
• any additional benefits and disadvantages of particular options; and
• any cost implications of various options.

This input will be crucial in further assessing the various options for reform.

Part 4: Issues not requiring further action

The final part of the paper identifies areas where it is considered that no change is required and the reasons for retaining the current arrangements. These include:

• Continuing to regulate yard managers under the MVDA (page 190).
• Retention of current arrangements in relation to used car warranties (page 195).
• Continuing to regulate motor vehicle repairers under the MVRA (page 200).
• Opting not to introduce specific consumer guarantees under the MVRA (page 208).