Retail Motor Traders Support National Uniform Unfair Contracts Legislation

MEDIA STATEMENT


RETAIL MOTOR TRADERS SUPPORT NATIONAL UNIFORM UNFAIR CONTRACTS LEGISLATION

At their National Board Meeting in Canberra today the Directors of the Motor Trades Association of Australia confirmed again the Association’s support for the Government’s proposed unfair contracts terms legislation. They did so against the background of their continuing support for the Ministerial Council of Consumer Affairs and the Assistant Treasurer and Minister for Consumer Affairs’ proposals that had been in the public domain now for over a year.

MTAA, which is the largest stand-alone, national, small-to-medium-enterprise representative Association, sells, services and repairs all of Australia’s motor vehicle fleet of over fifteen million vehicles and does so through sixteen national associations comprehending every aspect of supply and service of those vehicles. In that, retail motor traders employ over 308,000 staff, have 100,000 retail outlets and have $160 billion of turnover.

The National Board and the Association noted recent media reports of the opposition by big business to the proposed legislation which would restore some fairness to contractual dealings between big and small business which has been lost over the last decade.

The Directors found this reaction to be unsurprising and that big business “would say that wouldn’t they”, but rejects that and is unmoved by it.

That is because the Association has long reported to governments and oppositions and parliaments that increasingly contracts and dealings between suppliers and resellers, franchisors and franchisees and big and small business have become more and more one-sided, unreasonable and unfair against small to medium enterprises.

For that reason the Association and all of its sixteen national divisions have long supported measures that would provide for more equitable relationships between its members and their big business suppliers and acquirers.

The majority, if not all retail motor traders, operate under agreements which contain clauses that the Association and its national divisions believe are not necessary to protect the legitimate business interests of the larger party. As years have gone by, those agreements and contracts have become increasingly lop-sided and inimical to the interests of medium to small businesses and against consumer interests. The Association believes the Government is right; it is time to stop the clock and address matters.

Many, if not most of all of the agreements governing the dealings in our numerous trades are invariably presented on a “take it or leave it” basis, leaving no capacity in small to medium enterprises to address or preserve their interests. If they do not accept that which is forced upon them, they find they are unable to negotiate the terms of their contracts and they have little recourse to address when the unfair terms of those contracts come ultimately to be enforced.

The Association has participated in all consultations over this policy and legislation.

The Association urges the Government, on behalf of the Ministerial Council and all the subscribing governments, to continue with its stated timetable for the legislation on the basis that it will apply broadly across the economy and to all consumer transactions, including those between big and small business.

The Association notes against exaggerated and confected comments in the media by a couple of large businesses that the legislation will do the damage they propose it will, yet they not having seen the final version, is completely contradicted by the undertakings of Minister Bowen that the legislation will be referred to a Senate Committee for consideration. MTAA will in due course make a submission to that Senate Committee Inquiry in support of the national unfair contracts regime on behalf of its small business dealings and contracts which need to have the same protections as those that will arise for consumers.

MTAA, and most of small business, would urge big business and other self-interested parties to calm down, wait for the Government to undertake its consultations and read the final legislation.

ENDS

4 June 2009

For further information please contact MTAA on 02 6273 4333