MTAA Cautiously Pleased with Productivity Commission's New Direction for the Smash Repair Sector

The Motor Trades Association of Australia (MTAA) has today welcomed the release of the Productivity Commission’s draft report on its Smash Repair Inquiry; with the key draft recommendations clearly demonstrating a need for change in the relationship between insurers and repairers for the benefit of consumers and the market.

MTAA’s Executive Director, Michael Delaney, said that the MTAA is cautiously pleased with the direction that the Productivity Commission has taken in this draft report.

“The Productivity Commission, has clearly stated that there must be greater transparency in the relationship between insurers and repairers as the current adversarial environment is negatively impacting on the competitiveness and efficiency of the market”, Mr Delaney said.

“The draft recommendation of a voluntary, industry-wide code of conduct will clearly benefit consumers by improving the transparency, efficiency and fair trading in the sector. MTAA now calls on insurers to come to the table and enter into constructive negotiations to adopt this recommendation in a timely manner for the benefit of all involved in the sector.

“MTAA notes however that the Productivity Commission has suggested that if a voluntary code is not agreed within a reasonable time, a code should be mandated under the Trade Practices Act. The Association welcomes this approach.

“MTAA welcomes many of the recommendations in the draft report and looks forward to working with the Government and insurers to ensure that the recommendations are adopted as quickly as possible for the benefit of the market as a whole.

“However, MTAA notes that some of the recommendations in the draft report are inconsistent with what was sought in its submission to the Commission and it will thus further pursue with the Commission achievement of these things.”

For further information please contact Michael Delaney, Executive Director MTAA, on (02) 6273 4333