Answers to Questions

National Locksmiths Licensing Scheme

147 The Hon. K.J. MAHER (Leader of the Opposition) (11 September 2019). Can the Attorney-General advise, given the Master Locksmiths Association of Australia's call to develop a national licensing scheme for locksmiths to combat the rising number of locksmithing scams:

1. How many instances of locksmithing scams has the government been made aware of in South Australia?

2. How many people have been impacted by these locksmithing scams in South Australia?

3. How is the government monitoring instances of locksmithing scams?

4. What effects have these locksmithing scams had on the legitimate locksmithing industry?

5. How does South Australia compare to other states when it comes to instances of locksmithing scams?

6. Whether the government will commit to protect legitimate locksmithing businesses and consumers from locksmithing scams either via a state based or national based licensing system?

7. Will the Attorney General raise national locksmithing licensing at the next meeting of COAG?

8. Has the government considered introducing the Western Australian model of locksmith licensing and, if so, why hasn't the government introduced that model?

The Hon. R.I. LUCAS (Treasurer): The Attorney-General has provided the following advice:

1. This issue was originally raised in an email to me from a locksmith on 21 March 2019. This alleged that instances of the 'Israeli Locksmith Scam' may be occurring in South Australia, as several businesses were offering to open locks with relatively low callout fees. I asked the Commissioner for Consumer Affairs to look into this for me.

The commissioner advised that the 'Israeli Locksmith Scam' originated overseas. It involves a lead generator business, with numerous different online advertisements, sending out a minimally trained subcontractor who charges several times more than the quoted price to unlock a house or car. Sometimes the subcontractor damages the lock or property trying to unlock it.

The commissioner's agency, Consumer and Business Services (CBS), provides consumer advice and offers a dispute resolution service. A search of CBS records from 1 July 2018 to 13 September 2019 has not identified any consumer inquiries or complaints about locksmith scams. The commissioner noted that complaints of any kind about locksmiths are rare.

2. As none of these scams have been identified in SA, CBS is not aware that anyone has been impacted.

3. CBS monitors for trends primarily through its complaint data. It also monitors media reports and liaises with interstate counterparts and industry associations.

4. As none of these scams have been identified in SA, CBS is not aware that the industry has been impacted.

5. The commissioner is not aware of the prevalence of the issue interstate, as it has not been a topic of active discussion.

6. Before additional regulation is imposed on an industry, the government first looks to identify details of problems that have been occurring in that industry so that it can be determined whether a regulatory response is warranted and, if so, what the appropriate response should be. The government seeks to minimise red tape, and the resulting costs it can impose, while providing genuine protection to the community.

As complaints about locksmiths are rare and there have not been any about this alleged scam, there is insufficient evidence to justify imposing additional regulation on the locksmith industry at present. However, I have asked that the commissioner continue to monitor this issue in case issues become prevalent.

7. I will not be looking to raise this issue at COAG at this stage.

8. The commissioner has confirmed that people who provide a lock opening service do not need any particular licence in South Australia. However, the services they provide are covered by the consumer guarantees under the Australian Consumer Law. This includes a guarantee that the services will be provided with acceptable care and skill or technical knowledge and taking all necessary steps to avoid loss and damage. A consumer can seek compensation where a service provider breaches a consumer guarantee. They are also covered by other protections under the Australian Consumer Law, such as the prohibition on misleading or deceptive statements.

The current government has not looked to introduce the Western Australian licensing model for locksmiths as there has not been sufficient justification to do so.