Legislative Council Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia Legislative Council published Question Time Question Time Second-Hand Vehicle Dealers SECOND-HAND VEHICLE DEALERS The Hon. B.V. FINNIGAN Legislative Council SECOND-HAND VEHICLE DEALERS The Hon. B.V. FINNIGAN (14:57): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about recent orders of the District Court banning a former second-hand motorcycle dealer from the industry. Leave granted. Members interjecting: The Hon. B.V. FINNIGAN Legislative Council The Hon. B.V. FINNIGAN: At least it is about second-hand dealers, not second-hand candidates like all yours. The selling of second-hand motorcycles is regulated under the Second-Hand Vehicle Dealers Act 1995. Individuals and companies who are licensed to operate as second-hand vehicle dealers are required to contribute to the Second-hand Vehicles Compensation Fund. The fund is designed to compensate consumers who have no other prospect of recovering losses as a result of a transaction with a second-hand vehicle dealer. Will the minister inform the council about the recent decision of the District Court in relation to former second-hand vehicle dealer, Brenton Evan Hounslow? The Hon. G.E. GAGO Legislative Council Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister Assisting the Minister for Transport, Infrastructure and Energy) (14:58): I thank the honourable member for his most important question. Mr Brenton Hounslow was formerly the sole director of a second-hand motorcycle sales company, Docteur Desmo Australia. In 2007, Mr Hounslow was declared bankrupt and his company placed in liquidation. Before Mr Hounslow's financial problems, his conduct as a second-hand motorcycle dealer led to serious losses for a number of most unfortunate consumers. In 2006 and 2007, Mr Hounslow undertook to sell nine second-hand motorcycles on consignment but failed to pass the proceeds of the sales on to the appropriate consumers. Many times, cheques were issued to the unlucky owners but they were all dishonoured. Fortunately for the affected consumers, there is the compensation fund for those who lose out to dishonest second-hand vehicle dealers, such as Mr Hounslow. The Second-hand Vehicles Compensation Fund, established under the Second-hand Vehicle Dealers Act, is funded through the licensing of second-hand vehicle dealers by the Office of Consumer and Business Affairs. All the affected consumers were able to make claims against the fund and were together awarded compensation totalling $109,151. This is not a trivial amount, and it shows the need for continued rigorous consumer protection in relation to the second-hand vehicle industry. OCBA recently took action in the District Court to ensure that Brenton Evan Hounslow be banned from any participation in the second-hand vehicle industry. OCBA's action was successful and on 23 October Her Honour Judge McIntyre made orders that disqualified Mr Hounslow from being licensed as a second-hand vehicle dealer until further order. Mr Hounslow was also prohibited from being a director or employed or engaged in the second-hand vehicle dealer business until further order. Should Mr Hounslow breach these orders, he faces a $35,000 fine and up to six months in gaol. OCBA's action in the District Court follows a successful South Australia Police prosecution in the Magistrates Court, where Mr Hounslow was sentenced to 10 months gaol for dishonesty offences, which sentence was suspended on the condition he enter into a three year good behaviour bond. This government will continue to be active in disciplining and prosecuting dishonest second-hand vehicle dealers like Brenton Hounslow to protect the car buying public. The message to dodgy car dealers is clear: if they make it their habit to defraud consumers, not only do they face the prospect of a total ban from having a business in the second-hand vehicle industry but they could also face imprisonment.