Corporate pages - NSW Fair Trading | NSW Fair Trading€¦ · MVRIA Annual Report 2004-2005 1 Contents Letter of Transmission 2 About MVRIA 3 ... fair trading laws Financial statements

Motor Vehicle RepairIndustry AuthorityAnnual Report 2004-2005

www.mvria.nsw.gov.au

20

04

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2 MVRIA Annual Report 2004-2005

MVRIA Annual Report 2004-2005 1

ContentsLetter of Transmission 2

About MVRIA 3

Our Structure 3

Introduction 4

Planning Framework 5

Objective One 6Consumers/traders able to accessinformation and consumer help

Objective Two 10Compliance withfair trading laws

Financial statements 15

Appendices 32

Staff 34

Annual Reporting Compliance 35

Index 36

AccessLocation: 239 Great North Road, Five Dock NSW 2046Postal address: P0 Box 213, Five Dock NSW 2046Office hours: Monday to Friday, 8:30am to 5:00pmTelephone: (02) 9712 2200Facsimile: (02) 9712 1432Email: [email protected]: www.mvria.nsw.gov.au

ISSN 1833-0347New South WalesOffice of Fair TradingParramatta NSW AustraliaOctober 2005


The Hon Diane Beamer, MPMinister for Fair TradingMinister for Western SydneyMinister Assisting the Minister for CommerceParliament House Sydney

Dear Ms Beamer

I am pleased to present the Annual Report ofthe Motor Vehicle Repair Industry Authorityfor the year ended 30 June 2005.

The report has been prepared for presentationto the Parliament of New South Wales inaccordance with the requirements of theAnnual Reports (Statutory Bodies) Act 1984.

Michael Coutts-TrotterDirector-GeneralDepartment of Commerce28 October 2005

To

Parliament


About

MVRIA

The Motor Vehicle Repair Industry Authority(the Authority) is a state government statutorybody responsible for the regulation of themotor vehicle repair industry in New SouthWales under the Motor Vehicle Repairs Act 1980.The Authority is located within the Office ofFair Trading, which itself is a part of the NSWDepartment of Commerce.

Our Strategic PriorityContribute to a fair marketplace in the area ofmotor vehicle repairs.

a state governmentstatutory bodyresponsible for theregulation of themotor vehicle repairindustry in NewSouth Wales .

Our Legislation• The Motor Vehicle Repairs Act 1980• The Motor Vehicle Repairs Regulation 1999.• The Ozone Protection Regulation 1997 those

sections related to motor vehicle airconditioning.

Our Clientele• Persons carrying on the business of repairing

motor vehicles• Tradespeople who perform repair work• Consumers of motor vehicle repair services

• Finance

• InformationTechnology

Operations

• Licences

• Certificates

Technical Services

• Compliance

• Technical AdvisoryService

• Dispute MediationService

Director, MVRIA

Assistant CommissionerOperations

Commissionerfor Fair Trading

Ministerfor Fair Trading

Council of theAuthority

Ministerfor Commerce

Director-GeneralDepartment of

Commerce


Introduction

The Motor Trade Legislation Amendment Act 2001introduced amendments to the Motor VehicleRepairs Act 1980 that allowed the Motor VehicleRepair Industry Authority to better perform itsfunctions in relation to consumer protection,deterrence of car rebirthing by people in theindustry as well as providing a more efficientadministration.

Included in the amendments was arequirement for the Act to be reviewed todetermine whether its policy objectives remainvalid and whether the terms of the Act remainappropriate for securing those objectives.

The review was completed in late 2004 and thereport tabled in both Houses of the Parliament.The review found that overall the legislationwas meeting its objectives, however a numberof enhancements were recommended,including:

•Bringing the Motor Vehicle Repair IndustryAuthority under the administrativeresponsibility of the Department ofCommerce’s Office of Fair Trading;

•Developing mechanisms to improvecommunication between repairers andconsumers;

•Tradesperson certificates being subject torenewal, rather than being issuedindefinitely; and

•Existing repair categories being aligned moreclosely to the qualifications contained in theNational Training Package.

Stakeholders were consulted andimplementation of the recommendations hascommenced and will continue during the nextreporting period.

In March 2005, the Public Sector Employment andManagement (Motor Vehicle Repair Industry Authority)Order 2005, abolished the Authority as a publicservice department and transferred all of itsstaff and branches to the Department ofCommerce.

Operating from within the Office of FairTrading not only increases the Authority’sadministrative and budgetary efficiencies butalso improves face-to-face access toinformation and services for consumersthrough the Office’s extensive Fair TradingCentre network. The transfer also enhancesconsumer protection through furtheropportunities for joint complianceinvestigation and a more consistent approach topolicy, licence administration and legislativeenforcement.

Michael Coutts-TrotterDirector-GeneralDepartment of Commerce28 October 2005

Developingmechanisms to

improvecommunication

between repairersand consumers


The functions of the Motor Vehicle Repair Industry Authority (MVRIA) contribute to thestrategic priority of a fair marketplace for NSW in the area of motor vehicle repairs. This issupported by two high-level community-impact objectives which flow from the functions of theAuthority as set out under statute.

•Consumers/traders able to access information on rights and obligations.•Compliance with fair trading laws.

To address the first of these objectives, the Authority provides information by phone, directlyfrom its office, on-line and through publications, and outreach activities. Help is provided viadispute handling services where individual consumers who are in dispute with a repairer over thecost or quality of a repair can get ready access to assistance, without going through a formalprocess such as a Tribunal hearing. The Authority addresses the second objective throughlicensing, complaint handling and by investigating breaches of the legislation. Enforcementoptions range from prosecution to disciplinary action such as suspension or cancellation of alicence or the imposition of conditions.

Planning

Framework

Planned results

Community-levelindicators

Plannedintermediate

results

Service-levelmeasures

Strategic priority

* Relevant services provided as part of OFT’s overall services. Results are monitored for services as a whole.

Results over which OFT and MVRIA havehigher degree of control

Results not in OFT direct control.

Provision of accurateinformation to consumers

and traders

•% accuracy ofinformationprovided.*

•% of customerssatisfied with overallquality of service.*

Provision of effectiveconsumer help

to public

•% of disputesresolvedsuccessfully.

•% applications processed within 8 days ofreceipt of all required information.

•% of prosecutions successful.•% of disciplinary actions not reviewed by

ADT or where ADT reviews not upheld.

Provision of effective enforcement

• Consumers/traders able to access informationon rights and obligations

•% of public who know where to go toget help. *

•Community take-up rate. *•ATSI/NESB take-up rate. *

• Compliance with fair trading laws

•Number of complaints per $Billion ofGross State Product. *

Contribute to fair marketplace in area of motor vehicle repairs


Context:

Consumers/traders able to access informationConsumers/traders able to access informationConsumers/traders able to access informationConsumers/traders able to access informationConsumers/traders able to access informationand consumer helpand consumer helpand consumer helpand consumer helpand consumer help

This is the first of two high-level, community impact objectives which contributeto the strategic priority of a fair marketplace for NSW in the area of motorvehicle repairs. Once a fair regulatory framework is in place, which is achievedthrough the policy and legislative development work of the Office of FairTrading, it is essential for the community – consumers and traders – to be ableto access information on their rights and obligations under that framework, andfor consumers who are having difficulty acting on their rights to be able to gethelp.

Agency performanceProvision of accurate information to consumers and traders

Provision of effective consumer help to public

The Authority supports this high-level objective through two service-level objectives: provisionof accurate information, and effective consumer help. The Authority provides information byphone, at its Five Dock counter and online through its website. Increasingly, it will take advantageof the broader community interface provided through the Office of Fair Trading’s network of FairTrading Centres. Help is provided through informal complaint-handling services whereindividual consumers who are in dispute with a repairer over the cost or quality of a repair can getready access to assistance, without going through a formal process such as a Tribunal hearing.

1

Service delivery objectives/results 00-01 01-02 02-03 03-04 04-05 Target 05-06

Result: Provision of accurate information to publicMeasures: • Percentage accuracy of information provided* 93% 99% 87% 99% 83% ≥≥≥≥≥90%

• Level of customer satisfaction with overallquality of services* 89% 95% 94% 89% 87% ≥≥≥≥≥90%

Result: Provision of effective consumer help to publicMeasure: • Percentage of disputes successfully resolved 78% 80% 72% 78% 74% ≥≥≥≥≥70 %

Comment/InterpretationWe help consumers get a fair go in the vehiclerepairs marketplace by providing informationon their rights under the Motor Vehicle Repairs Act1980. Fair Trading monitors the quality ofinformation services provided to customers,assessing both customer satisfaction and the

accuracy of information provided, throughindependently conducted annual surveys. TheAuthority’s services are included in bothsurveys but due to their proportion within theoverall sample, the isolation of specific MVRIAresults is not appropriate - hence overall FairTrading results appear above. Individual

community-level objective one

* Results are monitored for OFT services as a whole


consumers can also contact us with acomplaint, and we will approach the repairer tohelp the parties reach agreement – offering aspeedy result for the consumer and helping cutgovernment costs by reducing the load on the

Community level statistics01-02 02-03 03-04 04-05 Target 05-06

Outcome: Community able to accessinformation and consumer help

Indicators: Percentage of public who know whereto go to get help 58% 68% 73% 73% 65-70%• Community take-up rate: average

number of services requested per1,000 people in NSW 400 502 509 557 Estimate: 580

• ATSI/NESB take-up ratematches (M) or exceeds (E)population representation * E E E E Target ≥≥≥≥≥ M

*Measured by Community Profile Survey.

Comment/InterpretationFor an indication of results against itscommunity level objective, the Authorityrelies on Office of Fair Trading data. FairTrading monitors several items which areimportant but not entirely in its control.

It is not necessary – or possible – for everymember of the community to know all theirrights and obligations in every area, but it isimportant for people to know where to go forinformation when they need it, and for allcustomers, including Aboriginal and TorresStrait Islander customers, and customers fromnon-English-speaking backgrounds, to findthe services easy to access, with no systemicbarriers in the way. Fair Trading seeks to

service existing demand not create “marketshare”. The high community take-up rateindicates strong ongoing demand for ourservices. More services are becoming availablethrough Fair Trading’s electronic channels, andthe increase in average number of services per1000 persons this year reflects greater use ofthose channels. The proportion of ATSI andNESB people contacting Fair Trading exceedstheir representation in the population,indicating these customers need the servicesand do not experience barriers to using them.The increase in community knowledge ofwhere to find the Office of Fair Trading (sinceit was created from Consumer Affairs and otheragencies in 1996) indicates that our informationcampaigns are working.

Consumer, Trader and Tenancy Tribunal. Thisservice is of value only if it achieves agreementin a high proportion of cases, and the tableshows resolution rates are quite high, so theservice is working.

Providing accurateinformation to consumersand traders

Informing the public about theindustry

The Authority aims to increase vehicle owners’understanding of their rights and obligations inrespect to motor vehicle repair work and toenable them, as much as possible, to resolvedifferences with repairers without the need forrecourse to more formal avenues. TheAuthority also aims to raise the awareness ofvehicle owners as to the complexity of motorvehicles and the importance of regularmaintenance by licensed repairers.

Web site information for motorvehicle owners and repairers

The Authority’s web site is a useful source ofinformation for motor vehicle owners andrepairers with a range of information related tomotor vehicle repairs and dealing withrepairers.

Register of licensed repairersand certificate holders

Members of the public are able to telephonethe Authority to check the register to ensurethat a business they intend using for repairwork holds a licence. Repairers are able tocheck the register to see if tradespeople holdthe necessary certificate to be employed tocarry out repair work. This information isprovided free of charge.


Good Car Care radio program

The Authority’s Good Car Care radio programcommunicates the message that consumersshould only deal with licensed repairers as wellas providing useful advice on basic carmaintenance. It is broadcast on over 30 radiostations throughout regional and rural NSW aswell as on a number of metropolitancommunity radio stations.

Fact sheets

The Authority has produced a range of factsheets to inform motor vehicle repairers abouttheir rights and responsibilities in the conductof their businesses.

Workshop visits by inspectors

All new repair businesses are visited by aninspector as soon as possible after they havecommenced business. This provides anopportunity for the requirements of thelegislation, fair trading principles and generalbusiness fundamentals to be discussed with thelicensee, as well as ensuring that theequipment, human resources and signagerequirements of the Motor Vehicle Repairs Act arebeing complied with.

Providing effectiveconsumer help to thepublic.

Telephone assistance torepairers

The Authority provides a telephoneinformation service to repairers to assist themwith questions about repair, regulatory, disputeand business matters.

Liaison with peak industrybodies

The Authority has well-establishedcommunications channels with the variouspeak industry groups to ensure a proper two-way flow of information about issues related tothe industry.

Technical advisory service toconsumers

The Authority provides a free technicaladvisory service to motor vehicle owners whohave concerns about the cost or quality ofmotor vehicle repairs. The technical advisoryservice is staffed by qualified and experienced

... a freetechnical advisory

service to motorvehicle owners.

tradespeople who discuss the issues of concernwith the motor vehicle owner. In many casesthis discussion is sufficient for the owner torealise that their concern is unfounded oraddresses the issue so that further action is notneeded.

In other instances the Technical AdvisoryOfficer is able to provide the owner withinformation to enable them to discuss thedispute with the repairer in an informedmanner and to reach a satisfactory outcome.Where appropriate the Technical AdvisoryOfficer will ring the repairer to discuss thematter. This also often results in a settlementbeing reached.

Where the matter cannot be resolved and if theowner intends to pursue it further, they are senta notice of dispute form to formally lodge theirdispute with the Authority. The technicaladvisory service answers approximately 15,000telephone enquiries each year.

Claims to the Consumer,Trader and Tenancy Tribunal

Where a matter cannot be resolved the owner isadvised that they can lodge a claim with theConsumer, Trader and Tenancy Tribunal. Inthese cases the Dispute Mediation Officerprovides a report of the matter to both parties,which can be used by the Tribunal in itsconsideration of the matter.

Trial of telephone disputemediation

A trial of teleconferencing proceeded duringthe reporting period. The trial has proven to bea success and provides owners, especially thosein regional and rural areas with quicker accessto the Authority’s dispute resolution servicesthan if they waited for a dispute mediationmeeting to be scheduled in their area.Telephone mediation will be expanded duringthe next reporting period.

Dispute mediation

If an owner lodges a notice of dispute with theAuthority arrangements are made for a DisputeMediation Officer to meet with the owner andrepairer to try to assist them reach a mutuallyagreed settlement. This process is free ofcharge and is entirely voluntary. If a settlementcan be reached, the terms of the settlement arerecorded in writing and signed by the ownerand repairer as evidence of their agreement.The settlement terms can then be referred to inevidence, if the matter is taken to anotherforum such as a Court or the Consumer, Traderand Tenancy Tribunal. During the year 1,528


...arrangements aremade for a DisputeMediation Officer tomeet with theowner and repairerto try to assistthem reach amutually agreedsettlement.

dispute matters were mediated, with 1,136 ofthese being either withdrawn by the owner orsettled without the need for any further action.In 392 cases the dispute was not able to beresolved.

Contingency fund

If a motor vehicle owner has suffered a loss dueto repair work that was incompetent then,subject to certain conditions, the Authority canmake a payment from its Contingency Fund torecoup the amount of the loss, up to themaximum amount allowed, which is $30,000.To be eligible for a Contingency Fund paymentthe owner must have done everything possibleto recover the loss, such as taking debt recoveryaction through the courts. During the

reporting period seven owners were paid atotal of $42,389.22 from the Contingency Fund.

Monitoring repairers’ disputehistories

The Authority reviews the dispute files of anyrepairer who has had three or more disputes inthe previous twelve months.

Where the nature of the disputes suggests thateither the standard of repair work needsimprovement, the costs appear unreasonablyhigh or the repairer has poor customerrelations skills, the matters are discussed withthe repairers in question and their conduct isthen kept under review. This process issuccessful in reducing disputes.

Formal disputes handled per year

The number of formal disputes handled each year is demand driven.

500

1,000

0

03-04 04-05

1,500

2,000

00-01

1,7

23

1,8

61

1,4

05 1,6

26

1,5

28

01-02 02-03

Technical advisory telephone enquiries

5,000

10,000

15,000

0

20,000

01-02 03-0402-0300-01 04-05

17,0

00

17,0

00

15,0

00

15,0

00

15,0

00

Allthough increasing numbers of customers are using the Authority’s website,demand for traditional contact methods remain high.


Context:

Compliance with fair trading lawsCompliance with fair trading lawsCompliance with fair trading lawsCompliance with fair trading lawsCompliance with fair trading laws

This is the second of two high-level, community-impact objectives whichcontribute to the strategic priority of a fair marketplace for consumers andtraders in the area of vehicle repairs. The ability to access information serviceshelps consumers and repairers know their rights and obligations. However,repairers also need to act in accordance with the Motor Vehicle Repairs Act fora fair marketplace to be achieved. MVRIA’s recent inclusion within the Office ofFair Trading was a strategic move to extend and improve the Authority’s abilityto monitor and enforce the Act throughout New South Wales.

Agency performanceProvision of effective enforcement

The Authority supports the community-level objective of maximum compliance with fair tradinglaws through a service-level objective of providing effective enforcement activities. Enforcementactivities include inspection programs as well as investigations that arise from inspections or fromspecific consumer complaints. Enforcement options range from prosecution to disciplinaryaction such as suspension or cancellation of a licence or the imposition of conditions.Compliance with fair trading laws is supported by a licensing and certification process designedto ensure motor vehicle repairers are appropriately skilled to carry out repair work to a standardthat would be reasonably expected by consumers.

2

Comment/InterpretationGood service level measures for compliancework are quite hard to develop. Currently wemonitor successful prosecutions – those thatresult in conviction, as well as those where the

offence is proven but a conviction is notrecorded. This measure reports the outcome ofenforcement through the courts in matterswhere the Authority is satisfied, as a result ofinvestigation, that significant legislative

community-level objective two

Service delivery objectives/results 00-01 01-02 02-03 03-04 04-05 Target 05-06

Result: Provision of effective enforcementMeasures: • % of prosecutions successful 100% 100% 100% 100% 100% ≥≥≥≥≥95%

• % of disciplinary actions not reviewed by ADTor where ADT reviews not upheld 100% 100% 100% 100% 100% ≥95≥95≥95≥95≥95%

• % of licence/certificate applications processedwithin 8 days of receipt of all requiredinformation 100% 100% 100% 100% 100% ≥95≥95≥95≥95≥95%


The Authority relies on the Office’s overallassessment of the levels of compliance in theNew South Wales marketplace.

There are immense difficulties, in principleand in practice, in directly measuring levels ofcompliance with fair trading legislation. It isnot possible – or desirable – to monitor everytransaction which occurs in the marketplacefor compliance.

Numbers of complaints or Tribunalapplications are possible indirect measures butby themselves can be very misleading, (forexample, an increase in the number ofcomplaints related to motor vehicles may notreflect a problem if the number of motorvehicles in the State is itself increasing). To getaround this problem, as an indirect measure,Fair Trading has been monitoring the level ofcomplaints relative to the amount of activityoccurring in the marketplace, measured (for

Community level statistics

01-02 02-03 03-04 04-05 Projection 05-06

Outcome: Maximum compliance withregulatory requirements

Indicators: Number of complaints per$Billion of Gross State Product 110 98 104 102 90-120

practical reasons) by the dollar value of GrossState Product.

The indicator is still experimental, but since itwas introduced it shows that the level ofcomplaints per $Billion of marketplace activityis both quite low and relatively steady in NSW.

Complaint numbers can be expected to varywithin a bandwidth, but a very large increase inthe ratio of complaints to marketplace activitywould trigger closer scrutiny to see if there areproblem areas where Fair Trading could betaking action.

Fair Trading can only contribute to the level ofcompliance in the marketplace – it does notdirectly control it – but the Office willcontinue to monitor this indicator which mustbe treated with caution as it is stillexperimental.

breaches have occurred. Although this is aservice-level measure, the results are notcompletely within our control as the outcomesdepend not just on the cases prepared by theAuthority, but on Court decisions. Theeffectiveness of our compliance work can befurther measured by the incidence of recurrentcomplaints against particular repairers. Thelow frequency of these complaints (there wereonly 2 instances in 2004-2005) suggests the greatmajority of repairers understand theconsequences of disregarding the law.

The Authority measures the quality of itsdisciplinary action by the percentage of itsactions that are challenged in theAdministrative Decisions Tribunal. That anysuch reviews have not been upheld in the pastfive years indicates the Authority’s disciplinaryprocesses meet high standards ofprofessionalism and thoroughness.

Although licensing and certification ofrepairers is part of the overall complianceprocess, the resulting authorisations to carry onrepair businesses in NSW are an importantaspect of New South Wales’ economy - withperhaps more than 40,000 people making theirlivelihood through direct involvement in themotor repairs industry. Equally, countlessthousands of consumers expect access toqualified repair facilities when they require it.

From the perspective of both consumers andrepairers, an efficient and effective licensingregime is essential to the viability of the motorrepair industry. The Authority continues toexceed its target licensing and certificationprocessing timeframes - demonstrating that theindustry is not subject to any administrative orregulatory impediments.

MVRIA’sdisciplinaryprocesses meethigh standardsprofessionalismand thoroughness


All motor vehiclerepair businesses

in New SouthWales must hold arepairer's licence.

Licensing of motor vehiclerepair businesses

Motor vehicle owners have a legitimateexpectation that repairs to their motor vehicleswill be carried out to proper trade standardsand at a fair cost.

The core strategy to achieve this is themonitoring and enforcement of licensing andcertification requirements and repair standards.This requires repair businesses to performwork to proper trade standards from a fixed ormobile workshop and to employ qualifiedtradespeople for the repair work undertaken.

All motor vehicle repair businesses in NewSouth Wales must hold a repairer's licence forthe class or classes of repair work that theyperform.

To be granted a licence businesses must be fitand proper, must have sufficient financial andmaterial resources to carry on the business andmust employ suitably qualified tradespeople toperform the repair work. At the end of thereporting period there were 11,933 licences inforce. During the year 1,645 applications forlicences were received.

The Authority also issues BusinessAuthorisations on behalf of the Department ofEnvironment and Conservation for businessesthat use ozone-depleting substances in

automotive air conditioning work. A total of1,850 Business Authorisations were in force atthe end of the year.

Certification of tradespeople

The Motor Vehicle Repairs Act requires motorvehicle repair businesses and commercialvehicle owners to employ tradespeople whoare suitably qualified to perform the type ofrepair work carried on by the business. Thesetradespeople are required to holdtradespersons’ certificates issued by theAuthority.

The completion of an apprenticeship ortraineeship for the particular work performedis the most common qualification used tosupport an application for a tradesperson’scertificate. People who do not have formalqualifications may be granted a provisionaltradesperson’s certificate, to allow them towork in the industry while they gain thenecessary skills and qualifications to be granteda full certificate.

Provisional certificates are usually granted for aspecific period of time and may also be subjectto certain conditions or restrictions, such aslimiting the range of work that can beperformed, or requiring the person to workunder supervision. During the reportingperiod 2,684 applications for tradespersoncertificates were granted.

Licences by Classes of Repair Work 03/04 04/05Automotive electrician fixed workshop 879 874Automotive electrician mobile workshop 86 121Body maker 488 504Brake mechanic 400 408Exhaust repairer 300 327Front end specialist 524 539Liquefied petroleum gas mechanic 544 562Motor cycle mechanic 466 466Motor mechanic fixed workshop 7,714 7,839Motor mechanic mobile workshop 569 689Natural gas mechanic 38 39Panel beater 2,085 2,161Radiator repairer 240 251Transmission specialist 501 503Vehicle painter fixed workshop 1,900 1,863Vehicle painter mobile workshop 81 110Total 16,815 17,256

Note: the number of licensed classes of work is greater than the number of current licences because they can be issuedfor more than one class of repair work.


As in past yearson investigationthe majority ofthese complaintsproved to beunfounded.

Disciplinary action againstrepairers

Disciplinary action can be taken againstrepairers and tradespeople due to the way theyconduct their business or the repair work theyperform.

The most common grounds for disciplinaryaction is where the trade work of a repairbusiness is below usual trade standard or wherethe business is being carried on in a dishonestor unfair manner.

Two formal disciplinary matters weredetermined during the year. The first matterrelated to a licence that had been granted to acompany whose director was subsequentlyconvicted for having received a stolen motorvehicle part. A determination was made tocancel the licence, and to disqualify thedirector from holding a licence or beingconcerned in the direction, management orconduct or a repair business for a period of tenyears. It was also determined that the directorwas required for a period of ten years to adviseany repairer who subsequently employed himas a tradesperson of his criminal record.

The primary grounds of the second matterwere that a company was carrying on itsbusiness in a dishonest or unfair manner andthat the repair work done by the business wasbelow usual trade standards.

It was determined to cancel the licence held bythe company, to permanently disqualify thecompany's sole director from holding a licenceor being concerned in the direction,management or conduct or a repair businessand to disqualify a former director fromholding a licence or being concerned in thedirection, management or conduct or a repairbusiness for a period of five years.

Prosecution of offences

It is an offence under the Motor Vehicle Repairs Actto conduct a motor vehicle repair businesswithout holding a licence for the class orclasses of repair work performed or to employuncertificated people to perform repair work.The Authority receives many complaints aboutalleged unlicensed repair work. The Authorityinvestigates these complaints and except in thecase of anonymous complaints informs thecomplainant about the outcome of theinvestigation.

In the majority of cases there is no breach ofthe Act, as the repair work being done is notthe carrying on of a business, but is being doneby an owner on his or her own vehicle orvehicles, or those of family members.

During the reporting period the Authorityreceived 375 complaints about possiblebreaches of the Act. As in past years oninvestigation the majority of these complaintsproved to be unfounded. As a result of its

Licence/certificate applications received and issued

1,000

2,000

3,000

0

Licences

issued

Licence

applications

Certificate

applications

4,000

Certificates

issued

01-02 02-03 03-04

2,9

05

2,6

87

1,3

06

1,3

45

3,2

88

2,9

94

1,3

13

1,3

82

2,9

43

2,7

40

1,3

28

1,4

28

2,6

84

2,4

60

1,6

42

1,6

45

04-05

*

* Some certificate applications involve the issuing of more than one certificate -first as a provisional certificate and then as a full certificate.


investigations the Authority prosecuted tenpeople for a total of 38 offences.

The offences related to the carrying on oradvertising the business of motor vehiclerepairer without a licence and the employmentof uncertificated tradespeople and the failure toproduce records to the Authority. All matterswere found proven and a total of $46,283 wasawarded in fines and costs.

Prosecutions and disciplinary actions 00-01 01-02 02-03 03-04 04-05Number of prosecutions 3 6 10 5 10Number of disciplinary actions 3 2 4 4 2

Unlicensed work complaints

Complaints about unlicensed repair work are initiated by members of the public andthe vehicle repair trade itself. They fluctuate according to marketplace activity.

100

200

300

0

03-04 04-05

400

500

00-01

32

6 35

8

42

9

48

9

37

5

01-02 02-03

Three of the matters, involving 18 offences andcosts and fines of $30,134, are subject toannulment applications that will be heard bythe court in the next reporting period.

Documents

Corporate pages - NSW Fair Trading | NSW Fair Trading€¦ · MVRIA Annual Report 2004-2005 1 Contents Letter of Transmission 2 About MVRIA 3 ... fair trading laws Financial statements