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Competition Review ignores consumer risk from parallel import regulation relaxation

Calls to relax regulations on the import of second hand cars and light commercial vehicles in the Competition Review final report , ignores identified consumer risks; fails to identify significant consumer benefit for the automotive market; and smacks of creating competition for competition sake.

Australian Motor Industry Federation (AMIF) CEO, Richard Dudley said the report failed to adequately explain why automotive retailing requires further government intervention to increase competition when Australian consumers are already enjoying the greatest choice of new car brands and models (67 and more than 350) at the lowest prices in 20 years.

'Consumer risk s posed by an influx of second hand vehicles of potentially unknown origin, dubious history and probable difficulty in terms of ongoing servicing and repair appear to be of secondary concern in the report', Mr Dudley said.

'The review report makes a giant leap of faith that these consumer risks can be adequately mitigated through regulatory and enforcement regimes and enhanced 'buyer - beware' awareness programs.

'AMIF remains unconvinced that any regime or program can be developed and implemented, with the necessary resources, within three years , to address the risk to consumers', he said.

AMIF reminds the Federal Government of its commitment to not allow "...Australia to become the dumping ground for other countries' old second-hand vehicles", when considering its response to the Review.

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