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Legislative Council - Fifty-Third Parliament, First Session (53-1)
2014-09-24 Daily Xml
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Unlicensed Car Dealers

The Hon. J.M. GAZZOLA (15:03): I seek leave to make a brief explanation before asking the Minister for Business Services and Consumers a question about unlicensed backyard car dealing in South Australia.

Leave granted.

The Hon. J.M. GAZZOLA: Purchasing a car can be one of the most expensive decisions consumers have to make, and it can often be difficult to tell if you are getting a fair deal. Will the minister update the chamber on the Consumer and Business Services investigation recently announced by the commissioner?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (15:04): I thank the honourable member for his important question. I am advised that motor vehicles continue to be one of the top consumer inquiries to CBS, and I am pleased to advise members about the Commissioner for Consumer Affairs' recent announcement of a planned four-month major investigation into unlicensed car dealers operating in South Australia.

Across Australia, jurisdictions have licensing regimes in place for motor vehicle dealers to ensure a fair marketplace is maintained and that consumers are protected. In South Australia, Consumer and Business Services (CBS) provides a telephone advisory service for consumers, a detailed booklet titled Autocheck and online information and advice, and administers the Second-hand Vehicles Compensation Fund. However, when purchasing a used vehicle privately from someone who is not a dealer, you are obviously not covered by the statutory warranty.

The state's consumer watchdog, CBS, is undertaking a major operation into unlicensed backyard car dealers over the next four months. It is focusing on individuals identified as selling more than four cars in a 12-month period without being licensed as required by state legislation. I am further advised that CBS intelligence inquiries have already identified a number of persons who will be subject to further investigation. These matters are being progressed with the assistance of the South Australia Police.

We obviously do not want to see the action of dodgy dealers tarnish the reputation of the vehicle sales industry. Where most people do want to do the right thing, it is always that handful of dodgy dealers who do the damage. Vehicles are an expensive purchase for most of us, and we want to ensure that both consumers and licensed traders are protected. This investigation is another great example of the work CBS operatives undertake, and it follows an announcement earlier this year about the joint operation between CBS and the South Australia Police.

That investigation resulted in the arrest of five men and the seizure of 23 vehicles in connection with an investigation into the winding back of odometers in second-hand vehicles. It will include the consumer watchdog conducting unannounced inspections and face-to-face interviews with identified unlicensed backyard dealers. Operatives will continue to monitor the conduct of any backyard dealers detected throughout the targeted operation, and outcomes will be released at its conclusion.

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