Canberra's smash repair reforms do not go far enough

11/9/05
Small Business Minister John D'Orazio says Federal Government proposals to reform the smash repair industry do not go far enough.
Mr D'Orazio said the Commonwealth's attempts to develop a voluntary national code of conduct were unlikely to lead to more certainty in the industry or a better, fairer deal for smash repairers in their relations with insurance companies.
The Minister said a Western Australian Government submission to a Productivity Commission Inquiry into the matter, had called for a mandatory code and for 30 day payments to smash repairers.
"Smash repairers are not in a very equal relationship with the four major insurers who control most of their business," he said.
"Issues such as inadequate hourly rates for repairs, a lack of transparency in the quotation system and unreasonable payment terms of up to 60 days, were raised by repairers and their organisations.
"Many repairers also believe that preferred repairer arrangements are restricting competition unfairly."
Mr D'Orazio said the Commonwealth had now called industry and insurance company representatives together to develop a voluntary code of conduct and a dispute resolution mechanism.
"If the parties are unable to reach agreement on a voluntary code, we will be calling again for a mandatory code," he said.
Minister's office: 9213 7150