The inquiry, headed by National Party Member for Monaro, John Barilaro, revealed a significant number of vehicles are being returned to NSW roads, potentially increasing safety risks to road users, after undergoing poor quality repair jobs.
“A number of recommendations were made, one such is that all motor vehicle assessors be licenced under the Roads and Maritime Services (RMS) Vehicle Safety Compliance and Certification Scheme (VSCCS),” said Mr Barilaro.
“All licensed motor vehicle assessors will be required to provide details of structural or safety related repairs for inclusion on an RMS database and such vehicles will be subject to random safety and repair quality audits.
“Fines will apply for licensed assessors who breach licensing conditions and regulations. A three strikes policy will be introduced and all licence assessors will be required to hold relevant qualifications.”
Mr Barilaro said the smash repair industry is a major player in the NSW economy employing over 140,000 people.
“Around 90 per cent of the industry’s work is supplied by motor vehicle insurers and over 60 per cent of the market is controlled by the two largest insurance companies,” said Mr Barilaro.
Mr Barilaro said he was confident the recommendations would help increase the accountability of motor vehicle loss assessors, repairers and insurers and establish a better balance in the relationship between insurers and repairers.
He said the recommendations would provide the government with a clear framework to implement thorough and effective change.
The parliamentary committee carrying out the inquiry also included Liberal Member for Hawkesbury, Ray Williams, who has a background in panel beating; .Liberal Member for Campbelltown, Bryan Doyle; Labor Member for Bankstown, Tania Mihailuk and Independent Member for Lake Macquarie, Greg Piper.
Mr Willliams, who is also NSW Parliamentary Secretary from Transport and Roads, said the inquiry’s final report had been delayed from the end of May, as originally scheduled, due to huge volumes of evidence.
"There have been some quite alarming figures in relation to the poor quality of repairs in a certain percentage of vehicles," he said.
According to industry journal Paint and Panel, Mr Williams “was vigorous in his questioning. He is a strong advocate for repairers.”
Public hearings for the inquiry were held over two days in March at the Police and Justice Museum in Sydney with sessions mainly open to the public, but some closed sessions also in the schedule.
Reg Patten, CEO of the Motor Traders Association (NSW) and Graham Judge, acting body repair division manager, were the first before the committee.
They reported that over the last 12-18 months there had had a steady flow of consumers ringing MTA for assistance with poor quality repairs.
The collation of 130 examples in the last 12-18 months where poor quality and even dangerous repairs had been carried out pointed to a systemic quality issue in the industry, said MTA NSW.
Of the 130 vehicles listed 40 of those had been written off as a total loss on re inspection said MTA NSW.
Patten criticised both the Suncorp and IAG business models. Suncorp for its two-quote system and vertical integration model and IAG for its “fixed price” repair model and said that both encouraged minimal quality control.
MTA also reported that cash settlements from insurers are on the increase according to “member feedback”.
A recent feature on ABC’s ‘730 Report’ focused on three examples of dangerously or incorrectly vehicle repairs through insurance company-owned or preferred panel shops.
Further information about the inquiry including submissions and the final report canbe found at: http://www.parliament.nsw.gov.au/motorvehiclerepairindustry
