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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2010-10-29 Daily Xml
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MOTOR VEHICLE INSPECTIONS

The Hon. J.S. LEE (14:56): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about compulsory vehicle inspections.

Leave granted.

The Hon. J.S. LEE: It was reported in the minister's media release of Wednesday 20 October 2010 that the new legislation for a two-day cooling-off period for people buying a second-hand vehicle from a licensed dealer will be implemented at the end of November 2010. The Motor Trade Association of South Australia supports new state laws that give consumers greater protection when purchasing used vehicles, but Mr John Chapman from the Motor Trade Association has raised concerns that consumers have none of these important protections when they buy a vehicle privately.

The MTA supports calls for the introduction of compulsory vehicle inspections to help decrease the number of unsafe cars on South Australian roads. In a media release on Monday 25 October Mr Chapman stated:

It is unbelievable that at the moment, private sellers of vehicles do not have to ensure the vehicle they are selling is roadworthy—yet our dealer members are required by law to ensure roadworthiness.

My questions to the minister are:

1. How will the government address the increase in the number of defective vehicles on our roads?

2. Will the government support the calls to introduce compulsory vehicle inspections, proposed by the MTA?

3. What will the government do to improve consumer protection against buying unroadworthy vehicles from private car sellers?

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 for the City of Adelaide) (14:58): I thank the honourable member for her important questions. Indeed, they go to a number of very important and quite difficult policy areas, areas that I know a number of my colleagues, as well as myself, have given considerable thought to for some time.

We have just looked at the introduction of a cooling-off period for the purchase of second-hand vehicles, and I am aware of the position of the MTA. It has used that opportunity to again report its position regarding compulsory inspections and its concerns about backyard dealers. The MTA has taken this position regarding compulsory vehicle inspections for a number of years; it is not something new, and it is something that the association has discussed with a number of ministers. That particular policy area comes, I think, under the Minister for Road Safety, or it may even be the Minister for Transport.

I know that both those ministers have given thought to that. It is not an area that I am responsible for directly, yet it is an area where I have been involved in discussions. I know that it goes very much to the issue of the cost of living and, in particular, the ability of low-income drivers to purchase vehicles. By putting annual compulsory vehicle inspections in place the costs are, in turn, added to the cost of the vehicle and it does increase the cost of purchasing a vehicle. In relation to second-hand vehicles the government is particularly concerned about the impact that it could have on low-income drivers.

It is something that we try to balance very carefully. We try to put in place provisions around roadworthiness and suchlike to afford basic protection for drivers and consumers, whilst not making the regulation around vehicles too onerous and costly so that it becomes prohibitive for some members of our community to be able to afford to purchase a vehicle. We know that in many cases vehicles are essential for people to access work, school and many other functions in life, and it can have a significant impact on the lives of people and their families.

I understand the position is that those ministers have chosen not to go down the path of compulsory vehicle inspection. On the other hand, the government has in place a system of roadworthy requirements to ensure that vehicles meet a certain standard. Licensed second-hand car dealers are required to sell vehicles that meet a roadworthy standard.

I have been a very strong and vocal advocate in a wide range of public forums (including many media forums) where I warn the public about the risks associated with purchasing second-hand vehicles privately, particularly through unlicensed backyard dealers who do not have the same sort of warranty protections. In addition, the onus of ensuring that the car is roadworthy then rests with the buyer. Sometimes people can be led to believe that that would not cost very much to comply with, but when they take the vehicle in and it is found to be in a very bad condition (which the new owner was unaware of) they end up having incredibly prohibitive costs and are in a real mess.

Often they have had to take out a loan even to buy the vehicle, so they are paying off a loan they can ill afford and cannot even drive the vehicle. It can end up in some very sad and tragic personal circumstances. We are very vocal in encouraging consumers, wherever possible, to go through a licensed second-hand car dealer when purchasing a second-hand car.

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