MTAQ 2008 Annual Report

Motor Trades Association of Queensland

Annual Report 2008

Contents

1. President’s Report

8. Treasurer’s Report

9. MTA Institute of Technology

11. Members Services and Support

14. Australian Automobile Dealers Association

15. Automotive Engineers Division

16. Automotive Parts Recyclers

17. Engine Reconditioners Association of Queensland

18. National Auto Collision Alliance

19. Queensland Farm and Industrial Machinery Dealers Division

20. Queensland Motorcycle Industry Division

21. Service Station and Convenience Store Association of Queensland

23. Used Car Division

24. Organisational Structure

27. Financial Statements

56. Board Members 2007-2008

Motor Trades Association of Queensland 1

President’s Report

It has been a year of great challenge, change and significant achievement. Given the current challenges of the financial/business world, it is also a time, more than ever, when Members need to be a part of an Industry

body that represents their interests and is able to have some political influence in the hard decisions that will need to be made over the coming months.

It has been a year in which MTA Queensland has moved to a new phase in its operation by becoming a corporate entity, gaining an increased reputation for exceptional skills training and growing respect for our advocacy across all jurisdictions on behalf of Members.

TrainingIt has been a year when we added to the vision of MTA Queensland by expanding skills training and the planning and development for a multi-million dollar training centre at Acacia Ridge. The training centre is a priority project and is being fast-tracked to increase skilled tradespersons for the automotive industry.

This training centre will be the most advanced in Australia, concentrating on the full spectrum of apprenticeships, traineeships, school-based apprenticeships and traineeships and competency-based training.

MTA Institute of Technology is a preferred supplier to the Queensland State Government as an automotive training provider. It is one of the largest providers of training automotive apprentices and trainees in Queensland, employing 31 trainers based from Cairns to the Gold Coast, and from Toowoomba to Emerald in the west.

Over the past year, MTA Institute of Technology has expanded to service international clients. Managing Director, Brett Dale, and his team have positioned trainers in Papua New Guinea and Fiji to increase knowledge of the automotive industry, resulting in a skills base and career opportunities for these countries. Through partnering arrangements we deliver training to international students. This speaks well about the quality of our training products and the dedication of our training team.

I am pleased to report that MTA Institute of Technology has been acknowledged as one of Australia’s premier training organisations and has been awarded the highest rating of “three gold stars” by the Institute for Trade Skills Excellence.

MTA Queensland has moved to a new phase in its operation by becoming a corporate entity, gaining an increased reputation for exceptional skills training and growing respect for our advocacy role.

2 Motor Trades Association of Queensland

This establishes us as the first training entity in Queensland to receive the ultimate rating and the first automotive trainer to attain this level nationally. I congratulate Brett Dale and the entire establishment at MTA Institute of Technology on an outstanding achievement.

New Corporate HeadquartersThe redevelopment of our new Corporate Headquarters is progressing. The plan is for a 13-level mixed-use building to take advantage of the excellent Buchanan Street location. The paperwork for the redevelopment was lodged with the Brisbane City Council late last year and we expect to receive approval in due course.

The changed state of the world financial position may well mean that this initiative will be postponed until times have settled to a more normal market.

The trends in fringe Central Business District (CBD) real estate property continue to reinforce the longer-term economies of the project. The rapid escalation in CBD and fringe CBD property values across the State means that the next decade will see a relocation of most of industry out of these areas as economies dictate higher alternate uses for these centrally located assets.

MilestoneOn 25 March 2009, MTA Queensland will have been registered as an Industrial Organisation of Employers for 60 years (1949 - 2009). It will be a significant achievement and one to celebrate in the coming year.

Constitution MTA Queensland’s Constitution is an important document as our entire standing as an industrial organisation of employers and our whole organisational structure is dependent on our being incorporated as a Union of Employers in Queensland, and in the future the Federal jurisdiction. It became necessary to amend our constitution to comply with the relevant provisions of the Industrial Relations Act 1999 and Industrial Relations Regulations 2000.

Amending our constitution has been a complex and serious matter as it sets out the rules on membership, structure and control, election of office bearers and financial accountability. As it is a legal document and Queensland’s Industrial Relations Commission Registrar approval is required, lawyers McInnes Wilson were retained by the MTA Queensland Board to assist with its rewriting.

Approval ensures the credentials of MTA Queensland within the Queensland Industrial Relations framework.

Board Meetings and Regional VisitsDecentralisation of MTA Queensland activities has been a feature of the past year. The first regional Board meeting was held in Cairns and was appreciated by northern members. This was a new initiative and the intention is to convene the Board in a different regional centre each year. Northern members are congratulated for their enthusiastic support and preparatory work.

Core to our engagement with members are visits to non-metropolitan centres to speak directly with members and hear their views on Association and automotive industry matters. Feedback from members is valuable, enabling us to tailor services to needs and to represent comprehensively industry views and concerns to Local, State and Federal Governments.

MTA Queensland officers visited members in Atherton, Mackay, Townsville and Cairns, Sunshine and Gold Coasts, Central Queensland, Longreach and Toowoomba. A standout issue canvassed with us was the chronic shortage of skilled employees and is a matter that our training department is addressing.

Board GuestsPrior to the Federal Election, the current Minister for Small Business, Independent Contractors and the Service Economy, Dr Craig Emerson, MP, and the previous Minister for Employment and Workplace Relations were guests. Both of their addresses and the discussions that followed were interesting and informative, covering a broad range of issues including economic management, industrial relations, social security, indigenous affairs and skills shortages.

Brisbane International Motor Show (BIMS)MTA Queensland and Australian Automotive Dealers Association Queenslands’ annual BIMS is recognised as one of the three major automotive shows in our nation, and is viewed as a leading international event. The former Governor of Queensland, Her Excellency, Ms Quentin Bryce, opened BIMS 2008 and I trust she may honour us again in her role as Governor General of Australia.

BIMS 2008 featured the leading brands of motor vehicles ranging from exclusive sports and luxury cars, to corporate and family cars, to the small models and for the first time motorcycles made an appearance. Motorcycles will be represented at future BIMS.

Several automotive models made their debuts during the opening day’s Industry and Media preview. Top racing

Over the last 12 months our profile as an effective policy advocate has been recognised across all jurisdictions, particularly at the national level where we have had to develop our own profile as a reliable and effective voice for our membership.


drivers and car aficionados were in attendance to promote vehicle models and take questions from the public.

BIMS was a great success, providing members the opportunity to interface with the public. The organisers deserve the accolades.

As part of BIMS, MTA Institute of Technology held an Automotive Careers Day for High School students in years 10, 11 and 12 who had indicated their interest in pursuing a career in the automotive industry. It was free of charge to the student and all places filled quickly.

The inaugural President’s dinner brought together local, interstate and international interests across the automotive value chain and was an enjoyable evening of bonhomie and business interaction. The guest speaker was the motoring writer for The Australian, John Connolly who was thought provoking as well as entertaining.

Ag ShowQueensland’s largest agricultural and machinery field day was held for the 16th time at Toowoomba in September 2008.

Ag Show is an event organised by The Queensland Farm and Industrial Machinery Dealers (a division of the MTA Queensland) with its joint venture partners the MTA Queensland, the Royal Agricultural Society of Queensland (Toowoomba) and Australian Provincial Newspapers’ Toowoomba Chronicle.

The joint venture partners provide the management structure required to meet the needs of both manufacturer and consumers of agricultural machinery with the aim of developing it into to a world-class expo. F&IMDD Manager Neil Short has been active in Ag Shows since its inception 1992 and reports that the 2008 event was excellent from the perspective of both exhibitors and consumers. It received wide and positive publicity. Neil and his team are congratulated on the success of the event.

Industrial Relations We continue to be the leader in providing advice in this most important area of business activity. Ted Kowalski is recognised as an Australian expert in the advice provided to our wide membership base.

Motor Trader QueenslandThe Association’s magazine has received a facelift in terms of presentation and content to make it reader and membership friendly. The magazine is created in-house. The state of art printing equipment we recently acquired has the capacity to provide printing services to our

wide membership base and we will in the New Year be appointing staff to drive this new initiative.

Advocacy

Over the last 12 months our profile as an effective policy

advocate has been recognised across all jurisdictions,

particularly at the national level where we have had to

develop our own profile as a reliable and effective voice

for our membership. Our policy advocacy on behalf of

members has been extensive, thorough and professional. It

is rewarding that Governments recognise MTA Queensland

for its policy advocacy.

The Australian Taxation Office and the Reserve Bank

has recognised our advocacy capabilities by enlisting

our services for the provision of information on the

Queensland automotive industry. I acknowledge the

excellent working relationship between MTA Queensland

and the Queensland Department of Treasury and

Queensland Office of Fair Trading.

Stamp Duty on Motor Vehicle TransfersThe Queensland Government’s 2008-09 State Budget increased the stamp duty on motor vehicle transfers taking effect from 1 January 2008. The changes distinguished between engine capacity by increasing duties on standard vehicles between 33% and 100%. Hybrid cars duty remained at 2%. We were not consulted on the proposed alterations, instead finding out about the changes with the negative impacts on new and used car dealers through the media.

Although too late to make a difference, we sent a submission to the Queensland Treasurer prior to delivery of the State Budget, expressing disappointment at the lack of consultation, the detrimental impact of the changes on the automotive industry and an alternative proposal. We were not opposed to the purpose of the revenue’s direction (social infrastructure and services) nor the policy objective (combat global warming), but we took exception to the manipulation of the stamp duty on motor vehicle transfers when other more effective and efficient revenue raising measures were available.

It remains our view that this revenue raising measure is a regressive tax, being in part a tax on a tax. It discriminates between city and country, disadvantaging rural and regional Queensland where there is no infrastructure to support “hybrid’ cars. Our submission was acknowledged by the then Treasurer, Anna Blight, with undertaking to respond but to date there has been no response.


Australian Consumer & Competition Commission (ACCC) Inquiry into the Price of Unleaded PetrolOn behalf of our Independent Service Station members we

made a submission to the ACCC Inquiry into the Price of

Unleaded Petrol. We submitted that Independent service

station operators were “price takers” and that the “price

makers” were the vertically integrated oligarchic oil majors.

We recommended a uniform base transparent terminal gate

price from which the wholesale price could be determined

and that consideration should be given to the appointment

of a Petroleum Industry Ombudsman.

GCE Aivars Blums, Member Services Chief Executive

Kellie Dewar and Chairman of the Service Station and

Convenience Store Association of Queensland, Tim Kane,

gave evidence at the ACCC’s hearings at Townsville.

We provided confidential information on purchases and

sales of fuel and margins of some of our Independent

Service Station Members to support our assertions that

the Terminal Gate Pricing mechanism lacks transparency

and weaknesses with the operation of the Oilcode. The

Chairman and Commissioners solidly questioned us for

up to 2 hours on the issues contained in our submission

leading to strong discussions and testing of our submission.

Queensland Government’s Fuel Subsidy InquiryWe made a submission to the Fuel Subsidy Inquiry on behalf

of our Service Station Division. Aivars Blums and Kellie

Dewar attended the inquiry to give evidence.

We strongly supported the Queensland Government’s long-

standing policy to exempt motor fuels for revenue raising

purposes and the continued reimbursement to motorists of

8.354 cents per litre to compensate for Queensland being

included in the uniform Commonwealth excise scheme. We

said MTA Queensland had no knowledge or evidence of

any diversion of some $125 million along the fuel price chain

either out of or inside South East Queensland.

MTA Queensland and one other industry body were invited

by Queensland Treasurer Hon Andrew Fraser to discuss

measures to ensure that the full benefit of the Fuel Rebate

Scheme is transmitted to Queensland motorists and industry.

A proposal that motorists swipe a bar code on their drivers

licences at the point of sale to receive the 8.35 cents per

litre rebate to take effect from 2009 was outlined and the

opportunity given to respond through a formal submission.

It is the view of our Service Station and Convenience Store

Association Committee that the proposal should be strongly

opposed and an alternative model submitted.

Queensland Government’s Performance Review & Efficiency Commission in regard to the Property Agents and Motor Dealers ActThe Association made a submission to the Queensland Government’s Performance Review and Efficiency Commission concerning the Property Agents and Motor Dealers Act. This review was initiated by a request from MTA Queensland on behalf of members. Essentially we indicated that any regulation of motor vehicle sales in Queensland should either be generic or as stand alone legislation.

We brought to the attention of the Commission the need for a level playing field in relation to licensing enforcement and the circumvention of statutory obligations by unlicensed, unprofessional motor vehicle dealers. We put the view that the circumvention is both unfair to complying dealers and the motoring public. We have been advised that the Government has accepted our recommendations.

The Productivity Commission’s Draft Report - Towards a National Framework for Consumer PolicyWe were strong participants in the development of the National Framework for Consumer Policy. Aivars Blums and Kellie Dewar attended Round Table discussions in Brisbane and provided follow-up additional material in writing as well as making a submission.

We are pleased our view that both the consumer and the suppliers can participate fairly and in good faith in competitive markets and is to be incorporated in the high level future policy framework objective. Small businesses are both suppliers of goods and services and consumers in their own right. It is our view that medium businesses are also both suppliers and consumers.

Queensland Government’s Reform of Civil and Administrative JusticeA submission was made to the Department of Justice and Attorney General’s “Reform of Civil and Administrative Justice”. Our comments were confined to the Commercial and Consumer Tribunal and the Small Claims Tribunal and the need for motor vehicle/dealer applications/claimants to be arbitrated in the Commercial and Consumer Tribunal. This reform measure is in process.

Queensland Government’s Reform of Civil and Administrative JusticeA submission was made to the Environmental Protection Agency’s “Let’s not waste our future – Queensland Waste Strategy”. A key issue was a landfill levy. We submitted that tradeable landfill credits that are authentic, soundly

Our emphasis is on a holistic automotive industry policy emphasing it should not be manufacturing centric but be adjusted so that it is non-discriminatory ensuring a level playing field for all participants in the value chain – not stopping at the manufacturing level but continuing through to dealers.


based and comply with the legislation/regulation and issued to businesses for waste management should be considered in waste management strategies. We have not been advised of the outcome.

Australian Competition and Consumer Commission (ACCC) Issues Paper, The Trade Practices Act and carbon offset claims

MTA Queensland made a submission to the ACCC‘s Trade Practices Act 1974 query pertaining to businesses making carbon offset claims and to assist consumers to assess these claims. We submitted that it is our view that the issue of carbon-neutrality should be measured and defined in a clear way so that the public understand it and be uniform across the Commonwealth to allow for equity in comparison.

ACCC Inquiry into the competitiveness of retail prices for standard groceriesOn behalf of our Service Station members we made a submission to the ACCC inquiry into the competitiveness of retail prices for standard groceries. We stated that the convenience grocery sector that is linked to fuel outlets is not a price setter and does not affect the standard of living of the consumer in detrimental ways, as purchases are limited to “needed now” goods.

The Queensland Government’s Service Delivery and Performance CommissionThe Queensland Government’s Service Delivery and Performance Commission sought our views on two matters - Transport Operations (Road Use Management – Vehicle Registration) Regulation 1999 and the Management Review of Queensland Transport.

Petrol PricesWe liaised with the Australian Competition and Council Competition (ACCC) and Queensland Commissioner for Fair Trading (CFT) about the extensive petrol price surveillance programmes they operated over the Easter period.

The ACCC and CFT found very few breaches of the relevant legislation pertaining to retail fuel business behaviour. The results certainly confirmed our advocacy to the ACCC and CFT that our member’s did not behave opportunistically but responded appropriately to business circumstances.

Australian Government’s Energy and Tourism Oilcode ReviewWe forwarded a submission to the Federal Department of Resources, Energy and Tourism Trade Practices (Industry Codes – Oilcode) Regulations 2006 Review. This was an

important issue for our Service Station members.

Key recommendations included: That changes should be made to eliminate hidden discounts to the Terminal Gate Price (TGP); Franchisees, Independents, Commission Agents should know the base TGP and the volume level at which premiums cut in to assist in making fuel purchasing decisions or other business arrangements; and that the Franchise Code be amended to require the inclusion of termination arrangements.

State Motor Vehicle Repair RegisterWe provided a submission regarding the State Motor Vehicle Repair Register and we are hopeful of a very positive outcome. We are awaiting the Government’s response.

Australian Government Automotive Industry Review (Bracks’ Review)We made a submission to the Bracks’ Review from the perspective of our members and engaged in dialogue with Review staff on issues relating to the Discussion Paper.

We were disappointed that the unilateral luxury car tax budget decision coupled with the announcement of $35 million from the Green Car Innovation Fund to assist Toyota Australia to secure a new direction for green automotive production in Australia pre-empted the Bracks’ Review recommendations.

The Bracks Review is broad ranging but is primarily focused on the manufacturing sector, tariffs and the Automotive Competiveness and Investment Scheme. Although Queensland does not have a manufacturing base we made a submission believing that we are stakeholders in the review process as recommendations made may result in changes to the Federal Government’s automotive industry policy that could have significant repercussions on our membership and their businesses that are at the end of the value chain.

The automotive trade value chain in Queensland generates in excess of an estimated $16 billion each year, directly employing more than 60,000 people, contributing significantly to both Queensland’s and the nation’s economy. Our emphasis is on a holistic automotive industry policy emphasing it should not be manufacturing centric but be adjusted so that it is non-discriminatory ensuring a level playing field for all participants in the value chain – not stopping at the manufacturing level but continuing through to dealers.

We submitted that the review process should consider the impact of industry rationalisation on the complete automotive industry value chain to ensure economical


sustainability of the many parts of the industry, such as dealerships. We await the Federal Government’s response to the Bracks’ Review.

Luxury Car TaxThe Federal Budget measure to increase the luxury car tax (LCT) from 25 per cent to 33 percent applying to vehicles above $57,123 in our view is punitive and does not have the elements of a good tax or an understanding of its negative implications for the automotive industry value chain and Commonwealth and State government revenues.

We prepared a brief on the impact of the LCT from the perspective of the MTA Queensland, sending it to the Rudd Government Senior Ministers including the Prime Minister’s Office, Minister for Innovation, Industry, Science and Research Senator the Hon Kim Carr who has responsibility for the automotive industry, Federal Opposition Shadow Ministers and the Federal Chamber of Automotive Industries.

Further examination of the retrospective nature of the LCT by MTA Queensland identified a potential conflict between the administrative arrangements and statutory obligations under the Trade Practices Act (TPA), which required full disclosure of the actual purchase price to the customer at the time of the transaction and in any advertising or promotional material. In response, the Australian Tax Office subsequently instigated a Round Table with industry representatives including MTA Queensland to discuss administrative procedures to be followed by suppliers of motor vehicles subject to LCT. We strongly participated in seeking an equitable and workable solution to the potential contravention of the TPA and in recovering the increase LCT from purchasers.

The Senate Economics Committee undertook an Inquiry in the various 2008 Tax Laws Amendment Bills pertaining to the LCT. We forwarded a submission and attended Hearings to give evidence. The Federal Government amended the legislation and was passed.

National Fuelwatch SchemeOn behalf of Members, in all our submissions pertaining to petrol prices we have indicated a consistent position of caution to the West Australian Fuelwatch Scheme. We are not convinced of the merits of the Scheme, particularly for motorists in decentralised areas and have genuine concerns about its impact on Independent Service Station operators.

Legislation introduced into the Federal Parliament for a National Fuelwatch was the subject of a Senate Economics Inquiry. MTA Queensland was invited to provide a submission and to give evidence at Hearings.

We said in our Senate Inquiry submission that we are unable to support Fuelwatch as it is a form of quasi-price regulation that will impact adversely on our Independent Service Station membership. We have the view that its anti-competitive structure is unlikely to protect the consumer interest and will cause further rationalisation of retail service stations resulting in concentration of market power - which may be the unintended consequences if this policy is implemented in its current form. The legislation is before the Senate and the outcome not yet finalised.

Climate ChangeA precursor to The Garnaut Climate Change Review and the Australian Government’s Carbon Pollution Reduction Scheme Green Paper was the visit of former United States Vice President Al Gore for a series of luncheon addresses on global warming. As a consequence, Aivars was invited by Lexus of Brisbane to meet with the former Vice President and to attend his address.

QFleet Report The QFleet Report was a long awaited document having made many representations on behalf of members over past years. We are pleased that the report was finally made public and to know that our voice was heard.

QFleet is a large business entity owning a motor vehicle fleet of approximately 14,000 with an additional estimated 5,000 vehicles owned by government agencies. This fleet is significant for vehicle manufacturers/motor dealers and their market share within Queensland as well as the used vehicle market.

The Review advocated that government would maintain ownership of the fleet through the existing centralised model assisted by several reform measures. QFleet remains a Commercial Business Unit as commercial practices in place are compliant with the National Competition Policy that ensures competitive neutrality. A move away from a Commercial Business Unit model would result in QFleet not accounting for tax implications consistent with the private sector.

It retains its motor dealer’s licence acquired in 2000. QFleet’s selling strategy remains unchanged from the 64 per cent public buyers to 36% dealer participation introduced in 2006.

MTA Queensland has invested heavily in Training and Advocacy and a professional corporate structure. Over the next several years MTA Queensland will reap the benefits of this hard work by the Board and staff and will continue to develop as an outstanding advocate for members.


Inquiry into the Franchising Code of ConductWe responded to the Parliamentary Joint Committee on Corporations and Financial Services’ invitation for submissions to the “Inquiry into the Franchising Code of Conduct”. We submitted the three major areas that should be considered to improve the competence of Franchising Code of Conduct (the Code), which are: exit arrangements, unilateral renegotiation of franchise fees or benefits during the term of the agreement, and renewal.

It is MTA Queensland’s view that The Code should be effective and relevant to the automotive value chain and should recognise and have the ability to deal with disparate arrangements, such as franchises involving large transactions such as motor vehicles, and franchises involved in a large number of modest transactions such as fuel retailing.

RelationshipsOur advocacy is more important than ever before following the withdrawal of the Victorian Automobile Chamber of Commerce (VACC) and Tasmanian Motor Trades Association (TMTA) from the Canberra based Motor Trades Association – Australia. MTA – Queensland is working towards establishing a special relationship with VACC and TMTA and is working closely with Federated Chamber of Automotive Industries.

Thank youOn behalf of the MTA – Queensland Board, I congratulate Aivars Blums and his staff. I extend thanks to him for his leadership on moving the Association to a corporate structure model and to becoming a respected advocate across all levels of government. We wish Aivars well for the future and trust his ongoing fight with cancer will be successful.

I thank Treasurer/Secretary Ian Field for his high sense of duty in his important role.

A special thank-you is extended to the MTA – Queensland Board for dedication to the Association and support through a year of challenge, change and significant achievement across each group.

Our External Directors – Colin Meng - now Mayor of Regional Council, Paul Moni and Tom Barton have given generously of their talents and time. Their contributions are appreciated and I thank them.

Managing Director Brett Dale has excelled, leading his team through a very successful year with MTA Institute of

Technology being recognised as one of Australia’s premier training organisations and awarded the highest rating of “three gold stars” by the Institute for Trade Skills Excellence.

Thanks to Chief Financial Officer, Kathy Winkcup, for her professionalism and dedication after returning from maternity leave. We are fortunate to have some one in that role who acts at all times in the best interests of our Motor Industry Association.

Kellie Dewar and her team have ensured that services to Members are of high quality. I thank Kellie for her dedication and support and for putting Member’s needs first and for her role as Editor-in-Chief of the Association’s magazine, Motor Trader.

I also thank Ted Kowalski for his industry expertise, professional and balanced industrial relations advice, without which many of our members would have to pay for expensive external advice.

FutureMTA Queensland has invested heavily in Training and Advocacy and a professional corporate structure. Over the next several years MTA Queensland will reap the benefits of this hard work by the Board and staff and will continue to develop as an outstanding advocate for members at Local, State and Federal levels and an excellent provider of services and skills training to members.

Greg Klease. President

MTA Queensland November 2008


I have the pleasure in presenting the MTA Queensland 2007 - 2008 financial results, which show a current period surplus of one quarter of a million dollars. This result is less than we budgeted, but should be viewed in

the context of the Board’s decision to reduce membership fees by approximately three quarters of a million dollars during the same period. The feedback from members indicates this initiative was very much welcomed.

The results from the 2008 Motor Show were less than budget, and as a consequence the Motor Show committee under Chris Beecham has taken the view that external management of the show promotion and administration is essential in the future to protect this most important asset of AADA and MTA Queensland. The job of running this significant Queensland event will in future be delegated to paid event managers to ensure its continued success and viability.

During the year we finalised the corporatisation of the MTA Institute of Technology under Managing Director, Brett Dale, which is now recognised as the major provider of automotive training in Queensland. During this period, MTA Institute of Technology was awarded national recognition for excellence. They were awarded the highest level of recognition by the Institute of Trade Skills Excellence and remain the only Queensland Registered Training Organisation with such award. I am very confident this organisation will continue to be the foundation of our industry body moving forward and continue providing our industry with world class well trained trades persons.

In the past few months we have finalised the management restructure of the association and this should see considerable savings and improved member services in the 2008-2009 financial year.

During the last twelve months your association’s net assets have improved by over a million dollars. With building projects and expansion of our training activities planned for the New Year, we can confidently predict a continued improvement in our asset base.

Ian Field Treasurer

Treasurer’s ReportIn the past few months we have finalised the management restructure of the association and this should see considerable savings and improved member services.


MTA Institute of Technology (MIT) continues to develop as a recognised leader in training through responsiveness, flexibility, and technical innovation. The training model

remains cutting edge in delivery and content and has been formally recognised for excellence over the past year.

The year has presented many exciting challenges and rewarding times for MIT. We have achieved record results in performance both in quality and financial position with a net profit of $1.3m after significant investment in relocation costs and training resources. New business has increased significantly and ongoing growth is anticipated in both our current scope and intended new business products and services.

OperationsMIT has established contracts to deliver automotive training in both Fiji and Papua New Guinea on behalf of the Australian Pacific Technical College which is an initiative of the Federal Government’s AusAid project. This arrangement provides an excellent opportunity for our highly qualified trainers to export their knowledge and technical skills to neighbouring countries to promote greater independence to the pacific regions. The opportunity also provides teaching experiences for our trainers that are not readily available in Australia. This is a great initiative of the Federal Government and one that we are proud to contribute to.

We have commenced training with our International Partner, delivering technical qualifications that will either add to the quality of potential skilled migration applicants for our industry, or transfer technologies to countries less developed. The arrangement is progressing exceptionally well, with an outstanding commitment to quality training from our partner ensuring that the industry standards are maintained throughout their training experience.

MIT have hired several new technical and support staff which has created a capacity for continuous improvement and growth. Our current capacity and structure is capable of an additional 20-30% capacity with limited investment.

AchievementsMIT has secured several noteworthy achievements and has worked hard to expand our training products and services to ensure that we further contribute to the sustainability of

MTA Institute of TechnologyWe have achieved record results in performance both in quality and financial position with a net profit of $1.3m after significant investment in relocation costs and training resources.


the automotive industry. These achievements include the following:

• Awarded the three Gold Star rating for ‘excellence in trade’s skills training’ the highest level awarded by the Institute of Trade Skills Excellence and the only recipient in Queensland.

• Awarded the RTO of the year and most outstanding Trainee by Acclaim GTO

• Increased training products and services aimed at up skilling current trades people

• Gained a Federal contract for ‘Productivity Placement Program’ to support both employed and unemployed applicants with funding for technical training which does not meet State funding criteria

• An Increase in our State funded User Choice Contract 2007-2009 to the value of $4m to further address the skills shortage

• Skills First and Skilling Solutions Contracts which fund recognition of prior learning and gap training services for suitable industry personnel who are motivated to obtain part of full qualifications.

GoalsThe demand for skill shortages will drive the direction of MIT to ensure that industry is provided optimum training products with the flexibility and quality to meet the needs of our members and clients. We remain focused on the global and domestic economy, particularly its impact on the automotive industry together with the demand influenced by the resource boom to ensure that skilling solutions negate the full impact.

We have developed several productivity and sustainability initiatives which we will communicate throughout the year and will include opportunities in the following areas:

• Business Management courses specifically designed for our industry

• Advanced technical qualifications which will provide cutting edge businesses with advanced technical skills required to meet the demands of the latest industry technology.

MIT will continue to attract and retain quality staff to meet the growth demand and to sustain commitments in regions not easily serviced. The talent management of both technical and support staff will stay a priority for quality assurance and staff recognition initiatives. This will remain

the key focus over the coming years and our vision to be recognised for excellence in training will be further evident.

GovernanceMany of you will know that under the corporatisation of MTA Queensland a Board of Directors was appointed to govern MTA Institute of Technology Pty Ltd. The Directors bring a wealth of experience to the Association through both their personal and professional achievements within industry, government and local community.

The Board of Directors consists of:

Mr Colin Meng – Chairman

Mr Tom Barton – Deputy Chairman

Mr Brett Dale – Managing Director

Mr Mark Brady – Director

Mr Glen Ford – Director

Ms Kathy Winkcup – Company Secretary.

Under the new corporate structure of the Association, our valued members and clients can expect services and products that are leading edge and value add to their business and the sustainability of industry.

On behalf the Board and executive management team, I acknowledge the outstanding efforts of both the technical and support staff who work diligently to deliver automotive training and whom are ultimately responsible for the success of the training operation and most importantly the skilling of industry.

Brett Dale Managing Director


The 2007 – 2008 year has been a busy on representation. We continue to build our understanding of policy settings and impacts on the automotive value chain. Representation to relevant

State and Federal Government Departments have been made on the following:

Tyre Product Stewardship Program, Franchising Code of Conduct, Stamp Duty on Motor Vehicles, ACCC Carbon Offset Claims, ACCC Grocery Submission, ACCC Petrol Price Inquiry, Bracks Automotive Industry Review, Civil and Administrative Tribunal, Qld Fuel Subsidy Enquiry, Award Modernisation, Repair Register, Oil Code Review.

The Property Agents and Motor Dealers Act Review is ongoing and we will continue to pursue positive outcomes for our Motor Dealer Members. The Service Delivery and Performance Commission Report has been finalised and provided to Government. The Government is now preparing its response to the report. The Report and the Government’s response will be made publicly available and tabled in Parliament in due course. We will keep you updated on any progress.

A major issue in my new role has been to respond to the Queensland Government’s proposed changes to the Fuel Subsidy Scheme that provides consumers and bulk end users with 8.354 cents per litre (cpl) reimbursement on eligible fuel purchases. Tim Kane, Chairman of our Service Station & Convenience Store Association, Michael Carr Vice Chairman and I attended a meeting with Queensland Treasury to be briefed on the proposed changes outlined in a Consultation Paper.

The reason for the proposed changes is to improve “the visibility of the subsidy to consumers; and to improve the quality of fuel sales data available to better audit compliance with the scheme.”

Our members unanimously deprecated the “point of sale” transaction model stating that it will:

• Unfairly place on fuel retailers the onus to implement the policy and impose substantial new and additional costs on retailers without any commensurate return for the outlays;

• Create complications for unmanned sites (Outside Payment Terminal operations) where a subsidy card scanner is not available:

• Impose on consumers an additional up-to one cent per litre Goods and Services Tax (GST) on fuel purchased as it will be calculated on the unsubsidised price; and

Members Services and SupportWe continue to build our understanding of policy settings and impacts on the automotive value chain.


In the current economic environment it may be timely to assess and compare your business overheads against our membership offers; our telecommunications offer is very competitive in the market. I will be increasing Membership Benefits in the coming year adding even more value to your MTA Queensland membership.

The skills shortage continues to affect our members and retention of staff becomes equally difficult and I am evaluating a HR Coaching Program which may assist.

Divisional SupportMember Services continues to provide administration services for the Divisions of MTA Queensland. I would to thank all my staff involved in the professional operation of our Member Services Department and the Chairmen and Committee Members for their co operation, input and assistance over the past year.

Kellie Dewar Chief Executive Member Services.

• Introduce console rage at the point of sale and particularly at peak purchasing times at busy fuel retail outlets if the consumer does not have the requisite identification card with an unique identifier number.

We submitted to Queensland Treasury an alternative policy that has the unanimous support of MTA Queensland Service Station and Convenience Store Association Division. It is based on individual site surveillance rather than individual transaction monitoring which our Members believe meets the reason for the proposed change “improved visibility of the subsidy to the consumer and fuel sales data to better manage the compliance of the scheme”.

Our alternative policy achieves Queensland Treasury outcomes without:

• the substantial retailer outlays such as subsidy card scanners; costly price board and register changes and staff training;

• the imposition of increased GST fuel charges on fuel consumers diluting the benefit of the subsidy;

• the introduction of the ‘no-card, no subsidy’ policy; and

• possible console rage flowing from consumers without the subsidy card demanding the subsidised price.

The alternative program addresses the Queensland Government’s requirement “to assist improving the visibility of the subsidy to consumers; and to improve the quality of fuel sales data available to better manage compliance with the scheme”. It enables the continuation of the significant contract market in which discount prices are contracted directly to the refiners for large users without complications.

Prior to submitting our submission Queensland Treasury officials invited MTA Queensland to discuss our views on the “point of sale” transaction model. We made a strong case against the proposed changes and outlined our alternative policy. We were given a courteous hearing and there was positive interest in our alternative proposal. It is also worthwhile to note that the RACQ is supportive of alternative proposal. Members wishing to see the full text of our submission - it is on our website.

We will have to wait for Queensland Government’s final decision. I will advise you of any announcements.

Members in regional areas will again have the opportunity to attend MTA Queensland meetings hosted by our President Greg Klease and we both look forward to catching up with our members. A full schedule of dates and locations will be advised at the beginning of the 2009.

Queensland Treasury officials invited MTA Queensland to discuss our views on the “point of sale” transaction model. We made a strong case against the proposed changes and outlined our alternative policy.


INDUSTRIAL RELATIONS REPORTAward modernisationThe financial year 2007/08 saw the first steps taken to establish new “modern awards” which will replace existing Federal awards and State NAPSA’s from 1st January 2010. (Only businesses which are Pty Ltd companies are affected by this change and sole traders/partnerships will remain in the State system until the State government decides how it will deal with the newly created “corporations power” of the Federal government.) This process, called “award modernisation”, involves simplifying the content of awards and reducing the current multiplicity of awards back to a far smaller number – usually based on industry coverage. It is to be done in stages, with various industries being nominated as “priority” industries and other falling into either stage 2, 3 or 4 – with appropriate timetables for completion of each stage. The motor industry has been placed in Stage 3 and we will have until early July 2009 to finalise the preparation of a “modern” award for our industry. Early indications, based on the experience of work done on Stage 1, give us some cause for cautious optimism that we will achieve a result that will simplify the complexity currently facing members and at minimal change-over cost.

Wage movementsBecause wage fixation is currently done by the Queensland Industrial Relations Commission (for sole traders/partnerships) and by the Australian Fair Pay Commission (for Pty Ltd companies), and because both bodies have handed down different wage increases in 2007, the rates of pay for the same type of employee working in different businesses now vary by around $8 per week – which is a constant source of confusion both for employees and employers. State wage rates were increased by $24.60/week from 1st September 2007, while Federal rates went up from 1st October 2007 by $10.26/week for employees being paid up to $700/week and by $5.30/week for employees being paid over $700/week.

Likely changes to unfair dismissal lawsThe Federal government has foreshadowed that the current unfair dismissal laws will change in mid-2009 to remove the current blanket exemption for businesses employing fewer than 100 employees. Instead, businesses having fewer than 15 employees will be exempted for the first 12 months of the employee’s employment, while firms having 15 or more employees will be exempted for the first six months. A Code of Fair Dismissal will be established which will outline the simplified steps necessary to ensure an employee is fairly dismissed. It is to be hoped that this change will not see any marked increase in the numbers of claims being lodged by employees.

Ted Kowalski Industrial Relations.


We enter what is undoubtedly the most difficult time motor dealers have ever faced and probably will ever face in the future. There are no comforting words which will lessen the

difficulties we have to overcome in the next few years.

The media want sound bites which reduce the complexities into thirty second sound bites. The politicians want to blame someone and the public just want things as cheap as possible without the realisation that lower prices may well mean so much competition that complex manufacturing industries that comprise the worlds motor industry can no longer make cars in countries which pay first world wages and provide pension support for them.

This is a time when we will have to dig very deep to stay afloat. Staff who do not give 100 percent cannot be kept on the payroll. We can no longer take what ever stock the manufacturers want us to take, as the floor plan cost pressures are now upwards. We will no longer be able to subsidise new sales by off setting finance income profits. new car sales will have to contribute in their own right to the overhead costs of the dealerships. we will need to look closely at our expensive facility commitments and make rational business decisions as to the viability of the sites if they were paying a real market rental factor.

The manufacturers around the world and especially the U.S. are struggling to survive in this new climate, without government support they will fail! This is not a failure of capital, expertise or innovation but the cost of providing for a larger and larger retired workforce from the sales of current vehicles. New entries to the market do not have these costs! There are some arguing in the U.S. that G.M. and Ford should be allowed to file for bankruptcy protection. If that happens what will happen to all the ex employees who live on the pensions provided for life from those companies. These are enormously challenging questions which have to be answered in the next few months.

The one thing we however as Dealers can count on is “the public will not go back to walking’. Because of that overriding truth we as motor dealers for the most part, assuming we are able to get finance, will adapt to the changing conditions and learn how to profit even in these most difficult times.

I wish you all well for the future, keep your association informed of any unreasonable actions on the part of your franchisors and anything that we may be able to do to assist with.

Ian M. Field. President

Australian Automobile Dealers AssociationWe as motor dealers for the most part, assuming we are able to get finance, will adapt to the changing conditions and learn how to profit even in these most difficult times.


This year has been a relatively quiet year for the AED. We have now been operating for almost a full year under the new name of Automotive Engineers Division (formerly ‘Combined Mechanical Repairer

Specialists Division’). This has now been approved and registered with the appropriate authorities. We expect that our Division will now be more easily recognised under this name.

We can’t say that we have set the world on fire during 07-08, but then again, are there pressing issues in the motor vehicle repair industry that we can actually tackle and resolve ? It appears not, because we are not aware of problems from our divisional members. The automotive repair industry is famous for “sitting on our hands”, in other words knowing that we have a problem, but not taking constructive steps to resolve any issues. This is fine as long as unreasonable complaints are not forthcoming.

We have been working on the VACC Tech Talk for sometime and now it has come to reality. We can now offer a special deal for members who wish to receive Tech Talk, either by paper or on CD format.

The Vehicle Register is still bothering us. It costs our members considerable time and effort to acquire the information required to comprehensively comply with the requirements of the legislation. As you would know, engine numbers are extremely difficult to obtain because of the difficult location on the engine block. Lets hope the authorities see reason to relieve us of this onerous task.

The future of the motor car as we now know will certainly change in the future as will the method of servicing and repairing future vehicles, such as hybrid, electric, hydrogen, etc. A number of manufacturers are now producing vehicles with non-serviceable major components, so does this mean repair shops will become fitters in the future? Then there is the issue of lack of technical information required to effectively repair newer vehicles, which raises the question of what happens to these vehicle when they are beyond the manufacturers desired repair period.

Someone once told me that an automotive technician should be paid more than a doctor, because in 50 years there has been enormous changes to the motor car, but in a lifetime the human body has not changed. I believe that our industry will continue to be met with changes in the year ahead which we will have to contend with.

Our thanks to the staff of MTA Queensland for their efforts throughout the year and I thank my committee members for their support, particularly in sometimes-difficult situations.

Charlie Serchen Chairman

Automotive Engineers DivisionWe have now been operating for almost a full year under the new name of Automotive Engineers Division. This has now been approved and registered with the appropriate authorities.


Firstly I would like to thank the committee for all of their support, as well as input from the members. We have had meetings this year with Qld Transport, Fair Trading, NPC, insurance companies and police,

to pass on our views.

The industry has had a very busy year. Business itself has been very inconsistent - a bit like the finance market - and with the price of property, many businesses have been forced to move or close down altogether.

We have seen a move towards one radio network this year, which I am sure will continue next year.

Scrap prices have dominated all year, from very high pricing that saw a surge of scrap yards starting everywhere and pushing up the prices of low end vehicles at salvage auctions; to very low pricing so that end of life vehicles could become a problem. We might see abandoned cars back on the streets and in the bush.

A reminder about the industry conference in Coffs Harbour in November: this will have local and overseas speakers, and it is well worth attending.

Be aware that there will be workplace health and safety audits after many incidents and fires lately.

The MTA Queensland is moving as fast as ever and with the reduction in fees is real value for money.

I would like the thank Greg Klease and the Board for the insight they have shown, and Aivars Blums for his tireless work.

Glen Ford Chairman

Automotive Parts RecyclersScrap prices have dominated all year, from very high pricing that saw a surge of scrap yards starting everywhere and pushing up the prices of low end vehicles at salvage auctions.


The 2008 year has been a rather challenging one for many of us. Most members are reporting the usual problems. The most common being the difficulty in finding skilled staff, especially in the

more remote country areas. The economic downturn has definitely affected the consistency of work that we see coming into our shops. The general consensus is that things will definitely improve and that the main thing to do is to be diligent in the handling of our own debtors. The country meeting was held in Bundaberg on the May long weekend. The meeting was well attended and we had great opportunity to network, meet old friends, look through the factory that makes the jubaru engines, and most importantly, to visit the Bundaberg Rum distillery!

The first weekend of November saw a gathering of like-minded engine reconditioners from all around Australia and New Zealand, getting together in Brisbane to try and find a solution to the problem of being able to meet at least once a year as a national body. The answer will be that there will be a non-political affiliation of interested members that will be for the main purpose of meeting as a large group and having conferences and sharing of information. A website is being established and all interested parties will be allowed to join; no matter what state they come from. Sounds good! We will keep everyone posted on these events, meanwhile have a safe and hopefully prosperous New Year.

Graham Kirkbride Chairman

Engine Reconditioners Association of QueenslandThe economic downturn has definitely affected the consistency of work that we see coming into our shops.


The collision repair industry will face further hardships during the global financial crisis, as insurance companies reinvestment funds on the world money markets have fallen short of predicted returns.

Does this mean that you, the repairer, will be have to accept harsher adjustments to ease the fall in their bottom line? Remember that all Insurance Companies are in the risk business, and in an article in the Business Section of The Courier Mail on 28/10/08, the Insurer in question said that the decline in profit was because they had an increase in claims due to adverse weather conditions.

After reading this article one could only assume that the premium is all profit and it is taboo for the policyholder to make a claim. All the stakeholders in this industry will see a decline in the net profit of their business.

You may wish to avoid some of the pain by becoming diligent with your job costing as inflation is tipped to be 5% for the nation, and the Collision Repair Industry will be another 2% points above that. The next round of increases in paint and consumables will reinforce that.

The Code of Conduct is one way for fair and just outcomes for those who are signatories. We at MTA Queensland have seen very few noncompliant forms lodged. To get The Office of Small Business to make changes to the Code we need all members to understand the elements within the document and forward to the MTA Queensland any breach that has occurred. If you are not sure if there has been a breach please call me and I will be able to assist.

Going forward, we will be lobbying The Office of Small Business for a QLD representative on the Code Administration Committee, not from the Insurance Companies but from the Collision Repair Industry. The other important issue will be the development of Realistic Times as the current formula is now unworkable and can not be forced upon us any longer as this change is prescribed in the Code.

To influence change, your Body Repair Division needs your support and voice.

I would like to thank both Vice Chairman and Committee Members alike for their support over the past year and it would be remiss of me not to thank the hard working staff at the MTA Queensland.

David Weatherall Chairman

National Auto Collision AllianceInflation is tipped to be 5% for the nation, and the Collision Repair Industry will be another 2% points above that. The next round of increases in paint and consumables will reinforce that.


Machinery dealers have been encouraged by the change to better seasonal conditions and sales. The agricultural sector seems to be in recovery mode after a long period of drought with better

than average summer crops being harvested on the Darling Downs and Central Queensland. Currently we are expecting the best winter crop harvest that has been seen throughout Queensland for many years.

Grain prices continue to be good due to increasing demand for grain being used in the production of ethanol fuels.

Machinery and equipment supplies from manufacturers have been hard to source during the last 12 months, causing concerns to our industry in the current demand climate. The higher demand for machinery has been due to higher prices for grain products and exchange rate benefits that were experienced up until end of September.

The industrial machinery sector has continued to be strong with many government infrastructure projects continuing throughout the 2007-2008 year, but now seems to be slowing down due to the world wide financial crisis.

Ag ShowThe 2008 Ag Show was once again a great success. The onset of a better winter season saw strong demand for equipment and many exhibitors experienced better than normal sales of big-ticket items. QFIMD sponsored the Best Australian Made Machine award again this year.

Bookings for the 2009 event are over 90%, which is about 8-10% up on last year. This includes most of the major exhibitors. The Ag Show will continue to be a major focus for this division in the future.

MembershipMembership for the division is static as is the case across all MTA Queensland divisions, larger groups are taking over smaller groups resulting in fewer members - though members locations remain static. This rationalisation is set to continue for some time into the future.

OtherThis year the QFIMDD worked closely with the Transport Department in achieving a satisfactory outcome for the replacement of the trade plate for dealers in the farm machinery businesses. I am pleased with the outcome and pleased we were able to assist our members in gaining the “Authorisation Letter” to move non-complying vehicles which cannot be moved with a trade plate and would normally require to be conditionally registered.

David Fraser Chairman

Queensland Farm and Industrial Machinery Dealers DivisionMachinery and equipment supplies from manufacturers have been hard to source during the last 12 months, causing concerns to our industry in the current demand climate.


The 07/08 year for the QMID has been very uneventful with very few issues affecting our dealer network. I would like to thank the MTA Queensland team for the assistance throughout the year and to the die

hard committee members for their ongoing support of the division.

Queensland government licencing changes have had the largest impact on both motorcycle sales and Q-ride training providers in the state. The interim change to the licencing system has reverted back to the old 250 starter system to allow the government to re-write the licence laws to accommodate a “LAMS” type system. The “LAMS” or Learner Approved Motorcycle System is the preferred licencing system for the majority of the other states and will be welcomed to Queensland in mid to late 2009.

In our submission on improving Motorcycle Safety in Queensland we supported the Transport Department in developing initiatives which will improve road safety and reduce fatalities and injuries to road users including and particularly motorbike riders.

However, we highlighted that MTA Queensland would expect that any new regime introduced by Queensland Transport would be properly monitored to evaluate the impacts on fatalities and major injuries to motorcycle riders together with the cost of implementation. This will allow a judgment to be made of the efficacy of the new arrangements and their cost effectiveness.

QMID are a member of the Motorcycle Safety Working Group (MSWG) a forum of Qld Transport Departments and Industry Stakeholders working together to increase Motorcycle Safety. We meet bi-monthly and as we represent Industry views I encourage active participation through input and views where requested on related topics. I thank you for your co operation in the past year and your feedback and views are always welcome at any time on increasing safety or other Motorcycle Industry issues.

Queensland dealers and related industry has also seen a slowing in retail activity with South East Queensland recording negative growth for the first time in about four or five years. The record highs of the state leading the strong national growth figures seem to have plateaued and with certain areas of the state feeling it harder than others.

Thanks again for your support

Paul Peterson Chairman

Queensland Motorcycle Industry DivisionQueensland government licencing changes have had the largest impact on both motorcycle sales and Q-ride training providers in the state.


In the nearly eight years in which I have been Chairman of the SSCSAQ and my twentieth year in the Petroleum industry, this year has been both the most fulfilling and challenging of all. It has been a flurry of activity in which

the MTA Queensland and the SSCSAQ division have been involved with seemingly more intervention from both our State and Federal Governments, resulting in increased media attention that our industry has drawn due to the effects of higher fuel costs on the public.

This thankfully should subside in the near future, as at the time of writing this report the price of crude is the lowest for several years, but unfortunately our dollar is also at a 5 year low – however the easing of fuel pricing is still forecast for the coming year.

We have been actively involved in opposing the Fuel Watch Scheme, which if it came to fruition would have seen Service Stations having to fix their pump prices for 24 hours after notifying the Government of their intended pump price. This would have catastrophic effects on small operators.

We have campaigned against this from not only a state level, but also on a federal level by attending meetings with our counterparts from other states. This has also had the added effect of opening up dialogue with the other state bodies on not only issues that are affecting our division, but also other divisions within our organisation.

We also have welcomed the new Fuel Watch Commissioner, Mr Joe Dimasi, and have also reiterated that the Fuel Watch Scheme is flawed and that better transparency at the wholesale level would achieve far greater outcomes.

Although the Fuel Watch Scheme has not been totally ruled out as yet, we have it on good authority that it will not achieve the required support to pass the Senate. We are still actively lobbying on this.

Since my last report, we have also written a submission to yet another enquiry into the Petroleum Industry, this one being to the Senate Standing Committee on Economics. I attended meetings with both Aivars Blums and Kellie Dewar, in which we were all questioned at length on the structure of the Retail Petroleum Industry, Terminal Gate Pricing and the volatility in the retail market and pricing.

We are still awaiting the Review of Oilcode results, which were due out at the end of September 2008. Little, if anything, of these results are expected to have any real impact.

Service Station and Convenience Store Association of QueenslandWe have been actively involved in opposing the Fuel Watch Scheme, which if it came to fruition would have catastrophic effects on small operators.


As mentioned earlier, the SSCSAQ has elected a new Vice Chairman, Michael Carr. Michael has been of great help and has given great input into what I think everyone would agree has been a difficult year. I would also like to thank our retiring Vice Chairman, Wayne Hanson, who is leaving the petroleum industry to pursue other interests. I wish him all the best of luck in his new venture in the future. Wayne will not only be missed for his great help and knowledge, but also for his enduring friendship and fellowship.

I would also on behalf of my committee and myself like to thank Aivars Blums upon his retirement for his unsurpassed help, knowledge and strong involvement. Without this I am very sure that we would not have gained the positive outcomes that we have achieved, as well as the strong, respected position that we are now placed in nationally.

I would also like to thank my Committee, all the MTA Queensland staff and Board members, and wish them all a safe and prosperous Christmas and New Year.

Tim Kane Chairman

We have also written a submission to the ACCC Grocery Inquiry, stating that petroleum-based convenience stores are not price setters or leaders and that this market is for “top up” convenience purchases, therefore do not constitute regulating in our sector.

And finally, concerning the proposed changes to the Queensland Fuel Subsidy Scheme – of which I could go into depth regarding what these changes are - I am aware that Queensland Treasury has notified all recipients of the Subsidy Scheme by mail outlining these changes.

Aivars Blums, Kellie Dewar, Michael Carr (Vice Chairman SSCSAQ) and myself, attended a meeting at Queensland Treasury to discuss these changes, at which time we opposed all changes and spoke of the ramifications both financially and emotionally for our members if these changes were implemented.

Subsequently, we were asked to write a submission on these changes and any alternatives that we feel will fulfil Treasury’s obligations back to Queensland Government. As this was a very involved submission, I urge every member to read this submission via our web site as all our submissions are posted on it.

It is interesting to note that the RACQ, Qld Tourism Association and the Qld Chamber of Commerce have all opposed the proposed changes to the Qld Fuel Subsidy.

It should also be noted that the Federal Governments Ethanol Distribution Program finished in March 2008. It is also my understanding that this scheme has run out of finances, and Service Station dealers who were eligible and have placed claims in the specified time frame have still not received their entitlements. We are currently assisting our members with this and urge anyone who has not received their grants to contact the MTA Queensland.

This year we have also seen the implementation of new food handling rules in Queensland that affect all persons handling food, including Service Stations and Convenience Stores. Please ensure that you are compliant as inspectors are currently auditing premises and new fines do apply.

I also attended the Forecourt and Convenience Expo in July 2008 in Melbourne. This is a bi-annual event and is well worth attending, as I found it a great networking opportunity to meet dealers from other states and find out about any new innovations in our industry. Several SSCSAQ committee members also attended the expo, as Queensland dealers are always in strong attendance at these functions.

we opposed all changes and spoke of the ramifications both financially and emotionally for our members if these changes were implemented.


The Used Car Division has been very active this year, although unfortunately there have not been a lot of positive outcomes to report from our recommendations and submissions to Government.

We made what we considered to be strong recommendations to the State Government regarding the increases in motor vehicle stamp duty, unfortunately to no avail.

We also have submissions before Government at the present time. One of these submissions is pertaining to the abolition of the Class B warranty on used motor vehicles. We are awaiting a decision from Government on this.

There have been massive changes within the used car industry in recent times, with the lines between Retailers and Wholesalers becoming very blurred. Prices of cars have been as turbulent as the stock market, with six cylinders diving and four cylinders rising dramatically.

Petrol pricing has obviously had a major impact on our industry, fuelling the car price fluctuations.

Hopefully next year will bring some more positive results for our industry.

Daryll Searle Chairman

Used Car DivisionOne of these submissions is pertaining to the abolition of the Class B Warranty on used motor vehicles.


Organisational Structure

Kellie DewarChief Executive Officer Members Services

Brett DaleManaging Director MTA Institute of Technology

Michael taylorPublications Manager

Peter RichardsonArt Direction Consultant

Russell sticklenTechnical Advisor

Print Manager

emma PiresPA to Chief Executive

Member Services

neil shortDivisional Executive

Aynslee BelltDivisional Executive

niki JohnsonDivisional Executive

ted KowalskiManager

Industrial Relations

Marcello RiottoBusiness Development

Manager

Katie GouldAdministration Assistant

Member Services

sherie GodfreyReceptionist

MDocs MPrint

Commercial Business MtA Queensland

Rebecca KulpaPA to Managing Director

MTA Institute of Technology


Kerry CookOffice Manager

Leonie MordueAdministration Assistant

Lachlan GriersonIT and Technology Education Manager

Mirela PribicAccounts Payable Clerk

Laura HouchenAccounts Receivable

Clerk

Leigh JoyAdministration Assistant

(on maternity leave)

Judy MargisonAdministration Assistant

tony WilsonSenior Trainer

Regional Queensland 10 Trainers

Rob thompsonSenior Trainer Brisbane

17 TrainersRosita seeto

Administration Assistant

Kathleen selfridgeAdministration Assistant

Kathy WinkcupChief Financial Officer

Ravi sathiyavan International Trainer

shawn o’sullivan Residential Trainer

Joe newberyLearning and Development

Consultant

Gloria RogersCompliance Manager

Motor Trades Association of Queensland Industrial Organisation of Employers

Financial Report for the year ended 30 june 2008

Contents

24. Income statement

25. Balance sheet

26. Cash flow statement

27. Statement of changes in equity

28. Notes to and forming part of the financial statements

46. Declaration by members of the board of MTA Queensland

47. Independent audit report

49. Accounting officer’s certificate

50. Certificate by members of the board of MTA Queensland

51. Auditors independence declaration

28 Motor Trades Association of Queensland Industrial Organisation of Employers

2008 2007 Note $ $

REVENUES 2 9,684,183 9,664,662

EXPENSES

Employee benefits expense 3 (4,693,111) (3,999,533)

Freight and cartage 3 (61,332) (48,935)

Depreciation and Amortisation expenses 3 (249,299) (250,301)

Commissions paid 3 (20,992) (143,557)

Finance costs 3 (12,898) -

Other expenses 3 (4,398,355) (3,493,816)

Total Expenses 9,435,987 7,936,142

PROFIT BEFORE INCOME TAX 248,196 1,728,520

INCOME TAX EXPENSE 1(b) - -

PROFIT ATTRIBUTABLE TO MEMBERS OF THE ASSOCIATION 248,196 1,728,52

Income StatementFor the year ended 30 June 2008

Motor Trades Association of Queensland Industrial Organisation of Employers 29

2008 2007 Note $ $

ASSETS

Current Asset

Cash and cash equivalents 4 4,022,645 3,185,206

Trade and other receivables 5 1,146,340 1,308,095

Inventories 6 87,618 65,251

Other 7 86,758 320,960

Total Current Assets 5,343,361 4,879,512

Non-current Assets

Other 8 267,777 149,515

Intangible asset 9 51,534 66,333

Other financial assets 10 5,385,435 4,464,084

Property, Plant & Equipment 11 6,479,289 6,165,759

Total Non-current Assets 12,184,035 10,845,691

TOTAL ASSETS 17,527,396 15,725,203

LIABILITIES

Current Liabilities

Trade and other payables 12 756,365 935,990

Provisions 13 33,225 36,829

Other 14 231,607 8,974

Financial liability 15 88,754 -

Total Current Liabilities 1,109,951 981,793

Non-current Liabilities

Provisions 13 65,859 21,332

Financial liability 15 357,974 -

Total Non-current Liabilities 423,833 21,332

TOTAL LIABILITIES 1,533,784 1,003,125

NET ASSETS 15,993,612 14,722,078

MEMBERS’ FUNDS

Reserves 16 5,882,289 4,858,951

Retained Earnings 17 10,111,323 9,863,127

TOTAL MEMBERS’ FUNDS 15,993,612 14,722,078

Balance SheetAs at 30 June 2008


2008 2007 Note $ $

CASH FLOWS FROM OPERATING ACTIVITIESCash receipts from customers 9,402,464 8,697,367

Dividends received 295,556 458,780

Interest received 249,114 206,006

Cash paid to suppliers and employees (8,982,872) (8,408,957)

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES 19(b) 964,262 953,196

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment (494,203) (275,927)

Payment for investments (5,000) -

Payment for capital expenditure (118,261) -

Purchase of intangible assets - (39,760)

Proceeds from sale of property plant and equipment 43,913 84,559

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES (573,551) (231,128)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings 446,728 -

NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES 446,728 -

Net Increase / (Decrease) in cash and cash equivalents 837,439 722,068

Cash and cash equivalents at the beginning of the period 3,185,206 2,463,138

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 19(a) 4,022,645 3,185,206

Cash Flow StatementFor the year ended 30 June 2008


Asset Revaluation Retained Reserve Earnings Total

Balance at 1 July 2006 4,709,762 4,950,530 9,660,292

Add Revaluations 3,333,266 - 3,333,266

Transfer to retained earnings (3,184,077) 3,184,077 -

Net Profit - 1,728,520 1,728,520

Balance at 30 June 2007 4,858,951 9,863,127 14,722,078

Balance 1 July 2007 4,858,951 9,863,127 14,722,078

Revaluations 1,023,338 - 1,023,338

Net Profit - 248,196 248,196

Balance at 30 June 2008 5,882,289 10,111,323 15,993,612

Statement of Changes in EquityFor the year ended 30 June 2008


NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThe financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report covers the Motor Trades Association of Queensland as an individual entity. Motor Trades Association of Queensland is a Union of Employers governed by the Industrial Relations Act 1999 within Queensland and the Workplace Relations Act at a national level.

The financial report of Motor Trades Association of Queensland complies with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety.

The following is a summary of the material accounting policies adopted by the association in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of Preparation The accounting policies set out below have been consistently applied to all years presented.

Reporting Basis and Conventions

The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Accounting Policies

a. Associated Entities

Motor Trades Association of Queensland owns and controls a number of associated entities..

The following are the associated entities:

MTAQ Ltd

MTA Institute of Technology Pty Ltd

MTAQ Services Pty Ltd

MTAQ Holdings Pty Ltd

MTAQ Management Pty Ltd

All entities have a June financial year end. MTAQ Ltd was the only entity which had any activity for the 2008 financial year. Transactions which relates to these entities are conducted on trust for Motor Trades Association of Queensland and are brought to account by the Motor Trades Association of Queensland.

b. Income Tax

The association is exempt from income tax under section 50-40 of the Australian Income Tax assessment Act 1999.

c. Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on the basis of weighted average costs.

d. Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Note to and Forming Part of the Financial StatementsFor the year ended 30 June 2008


Property

Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings.

Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity; all other decreases are charged to the income statement. Each year the difference between depreciation based on the revalued carrying amount of the asset charged to the income statement and depreciation based on the asset’s original cost is transferred from the revaluation reserve to retained earnings.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

Depreciation

The depreciable amount of buildings is depreciated on a straight line basis with all other fixed assets and capitalised lease assets, but excluding freehold land, is depreciated on a diminishing value basis over their useful lives to the association commencing from the time the asset is held ready for use. Leased assets are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the assets.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation Rate

Buildings 5%

Plant and equipment 15 – 60%

Motor Vehicles 30%

Leased Assets 20%

Fixtures and Fittings 20%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.


NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continuede. Financial Instruments

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Financial assets at fair value through profit and loss

A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139: Financial Instruments: Recognition and Measurement. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Held-to-maturity investments

These investments have fixed maturities, and it is the group’s intention to hold these investments to maturity. Any held-to-maturity investments held by the group are stated at amortised cost using the effective interest rate method.

Available-for-sale financial assets

Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity.

Financial liabilities

Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment

At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.

f. Impairment of Assets

At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

g. Employee Benefits

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.



h. Provisions

Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

i. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.

j. Revenue

Revenue from the sale of goods is recognised upon the delivery of goods to customers.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Dividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates and joint venture entities are accounted for in accordance with the equity method of accounting.

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

All revenue is stated net of the amount of goods and services tax (GST).

k. Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use of sale.

All other borrowing costs are recognised in income in the period in which they are incurred.

l. Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

m. Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to entities in the association, are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term.

n. Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

o. Capital Management

The directors of the association control the capital to ensure that the association can fund its operations and continue as a going concern. The association manages capital primarily through receipt of membership and training revenue and profits generated from business activities. There has been no change in the current year to this approach.


NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continued

p. Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group

Key estimates — Impairment

The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

The financial report was authorised for issue on 23 October 2008 by the board of directors.

2008 2007 $ $

NOTE 2: REVENUES

Revenues From Operating Activities

Agricultural Show Distribution 45,000 50,000

Commissions received 173,066 216,503

Industrial services income 39,687 104,231

Training services 4,930,276 4,130,839

Sale of publications 262,394 284,107

Sale of stationery 384,609 394,960

Interest from other persons 278,779 206,006

Members subscriptions & entrance fees 855,453 1,409,372

Motor show income 2,315,307 2,218,553

MTQ Insurance dividend 100,000 125,000

MTAA House dividend 235,556 333,780

Loss on sale of assets (9,434) -

Rent 19,456 33,472

Sundry income 54,033 157,839

TOTAL REVENUE FROM OPERATING ACTIVITIES 9,684,183 9,664,662



2008 2007 $ $

NOTE 3: EXPENSES

Expenses From Operating Activities

Accounting & Audit Fees 39,841 16,292

Advertising & Promotion 78,838 120,066

Affiliation Fees 7,238 -

Bad & Doubtful Debts 45,873 4,986

Bank Charges 17,773 13,304

Cleaning 47,854 27,949

Cost of goods sold – Publications 111,829 107,881

Cost of goods sold – Stationery 204,191 187,285

Cost of goods sold - Training 164,871 186,875

Commissions 20,992 15,345

Computer Upgrades 56,425 67,272

Consultants fees 214,378 312,206

Depreciation & Amortisation 249,299 250,301

Director Fees 29,069 -

Donations 61,635 37,280

Entertainment 27,713 15,131

Fees 9,715 8,299

Fringe Benefits Tax 47,606 36,984

Hire 46,882 3,571

Insurance 54,628 54,630

Interest 12,898 -

Legal Costs 188,897 85,042

Light & Power 22,185 23,798

Travel Board – Airfares/Accom 101,242 77,497

Meetings - Catering Board 35,536 33,254

Travel Staff – Airfares/Accommodation 145,733 57,506

Meetings – Catering Staff 11,484 11,908

Travel Other Staff & Board 811 -

Motor Show Expenses 2,097,577 1,733,402

Motor Vehicle - Fuel 42,416 57,917

Motor Vehicle - Other 18,929 17,412


2008 2007 $ $

NOTE 3: EXPENSES continued

Motor Vehicle – Repairs 7,278 14,769

Office Supplies 65,141 43,367

Packaging & Posting 61,332 48,935

Payroll Tax 212,402 175,446

Personnel – Engagement 32,417 50,491

Personnel – Long Service 40,923 (73,188)

Personnel – Salaries & Wages 3,839,714 3,305,924

Personnel – Salary Sacrifice 64,654 46,693

Personnel – Superannuation 535,418 403,927

Personnel – Uniforms 1,060 -

Personnel – Training 35,081 22,827

Printing & Stationery 7,778 37,699

Rates & Taxes 35,868 34,968

Rental on operating leases - 14,610

Rental 74,958 -

Repairs & Maintenance Other 18,440 13,463

Security 1,378 5,929

Special Projects 11,195 16,274

Sponsorships 3,973 2,350

Staff Amenities 14,751 16,617

Subscriptions 12,923 20,847

Technical Journals 9,240 13,789

Telephone/Facsimile 123,284 107,101

Web Site 1,793 -

Workshop Supplies 8,057 -

Workers Compensation 7,574 7,541

TOTAL EXPENSES FOR OPERATING ACTIVITIES 9,435,987 7,936,142

NOTE 4: CASH AND CASH EQUIVALENTS (CURRENT) Cash on hand 1,200 700

Cash at Bank 632,132 126,639

Cash on deposit 3,389,313 3,057,867

4,022,645 3,185,206



2008 2007 $ $

NOTE 5: TRADE AND OTHER RECEIVABLES (CURRENT)

Accounts Receivable 444,602 334,592

Less: Provision for impairment of trade receivables (35,950) (31,980)

408,652 302,612

Sundry Debtors 646,238 866,110

GST Receivable 62,938 67,514

Unearned Interest on Investments 28,162 -

Borrowing Costs 350 -

Loan Receivable - 71,859

Total Receivables 1,146,340 1,308,095

2008 2007 Amount Amount Amount Amount Total Impaired not impaired Total Impaired not impaired $’000 $’000 $’000 $’000 $’000 $’000

Not past due 195,393 - 195,393 129,563 - 129,563

Past due [30] days 30,248 - 30,248 57,525 - 57,525

Past due [30-60] days 20,936 - 20,936 17,258 - 17,258

Past due [60-90] days 98,005 - 98,005 44,112 - 44112

Past due [>90] days 100,020 35,950 64,070 85,695 31,980 53,715

Total 444,602 35,950 408,652 334,153 31,980 302,173

2008 2007 $’000 $’000

Analysis of Impairment Account

Opening Balance 31,980 32,565

Provisions for doubtful receivables 45,873 4,986

Receivables written off during the year (41,903) (5,571)

Reversal of amounts provided - -

Closing balance 35,950 31,980

(i) Provision for Impairment of Receivables

Current trade receivables are on 30 day terms except for the apprenticeship tuition fees. The total amount for tuition fees as at 30th June 2008 was $165,973, these debts are generally on a six month terms basis. These receivables are assessed for recoverable and provision for impairment is recognised based on historical levels of bad debts.


2008 2007 $ $

NOTE 6: INVENTORIES (CURRENT)

Finished Goods - Stationery 87,618 65,217

NOTE 7: OTHER ASSETS (CURRENT) General Prepayments 86,758 320,960

86,758 320,960

NOTE 8:OTHER ASSETS (NON-CURRENT)

Capitalised Development Costs 267,777 149,515

NOTE 9: INTANGIBLE ASSETS Software 283,304 268,056

Less: Accumulated Amortisation (231,770) (218,552)

Written Down Value 51,534 49,504

Trade Marks and Logo Costs 16,829 19,896

Less: Accumulated Amortisation (16,829) (3,067)

Written Down Value - 16,829

Total Written down Value of Intangible Assets 51,534 66,333

(a) Movement in carrying amounts

SoftwareBalance at the beginning of the year 49,504 35,962

Additions 15,247 15,024

Disposals - -

Revaluations - 3,989

Amortisation (13,217) (5,471)

Carrying amount at the end of the year 51,534 49,504

Trade Mark and Logo CostsBalance at the beginning of the year 16,829 -

Additions - 19,896

Disposals - -

Revaluations - -

Amortisation (16,829) (3,067)

Carrying amount at the end of the year - 16,829



2008 2007 $ $

NOTE 10: OTHER FINANCIAL ASSETS (NON-CURRENT)

Investments in Unlisted Entities Classified as Available for Sale

Units MTAA House Unit Trust at directors’ valuation, 2006 - 3,247,084

Units MTAA House Unit Trust at directors’ valuation, 2008 3,880,435 -

Shares QASA at cost June 2008 5,000 -

Shares MTQ Insurance at directors’ valuation June 2008 1,500,000 1,217,000

5,385,435 4,464,084

The basis of valuation of Units held in MTAA House is at fair value based on a valuation undertaken by an independent valuer as at June 2008. MTAQ Ltd holds 21 units of a total 115 units. The valuation is based on 18.26% of net assets held by MTAA Unit Trust.

The basis of valuation of shares in MTQ Insurance is at fair value based on recent sale price of $15 per share.

The basis of valuation of shares in QASA is at cost June 2008.

2008 2007 $ $

NOTE 11: PROPERTY, PLANT & EQUIPMENT (NON-CURRENT)Land & Buildings at fair value 5,800,000 5,750,000

Less: Accumulated Depreciation - -

Written Down Value 5,800,000 5,750,000

Fixtures & Fittings at fair value 122,183 116,067

Less: Accumulated Depreciation (57,020) (46,204)


Plant & Equipment at cost 541,762 738,000



Motor Vehicles at cost 98,212 263,645



Leased Assets 451,928 -

Less: Accumulated Depreciation (46,867) -

Written Down Value 405,061 -

Total Property, Plant & Equipment 7,014,085 6,945,211


Total Written Down Value of Property, Plant & Equipment 6,479,289 6,165,759


NOTE 11: PROPERTY, PLANT & EQUIPMENT (NON-CURRENT) continuedThe basis of valuation of Land & Buildings is at fair value based on the valuation undertaken by an independent valuer in June 2008 by Taylor Byrne Valuers (073815 registered valuation number)

a) Movement in carrying amounts.

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Land and Fixtures Plant & Motor Leased Buildings & Fittings Equipment Vehicles Assets Total

5,750,000 69,863 223,831 122,065 - 6,165,759

Additions 17,705 6,115 3,208 - 451,928 478,956

Disposals - (28,363) (24,796) - (53,159)

Revaluations 106,985 - - - - 106,985

Depreciation (74,690) (10,815) (57,544) (29,336) (46,867) (219,252)

Carrying Amount at the end of the year 5,800,000 65,163 141,132 67,933 405,061 6,479,289

b) MTAQ has an over draft facility for an amount of $500,000 which remained unused at 30 June 2008. The overdraft facility is secured by the land and buildings which has a written down value of $5,800,000 at 30 June 2008.

2008 2007 $ $

NOTE 12: TRADE AND OTHER PAYABLES (CURRENT) Creditors 224,083 555,025

Accrued Expenses 202,559 141,048

Annual Leave (note 12a) 329,723 177,155

Loan Payable - 62,762

756,365 935,956

NOTE 13: EMPLOYEE BENEFIT PROVISION Current 33,225 36,829

Provision for Long Service Leave (a)

Non Current 65,859 21,332

Provision for Long Service Leave (a)

428,807 248,334

(a) Aggregate employee entitlement liability.

Average number of employees during the reporting period 61 59



Long-term Employee Benefits Annual leave Current Non-current Total $ $ $ $

Opening balance at 1 July 2007 177,155 36,829 21,332 235,316

Additional provisions raised during the year 291,758 6,415 44,527 342,700

Amounts used 139,190 - - 139,190

Amounts reversed - 10,019 - 10,109

Balance at 30 June 2008 329,723 33,225 65,859 428,807

Provision for Long-term Employee Benefits

A provision has been recognised for employee benefits relating to long service leave for employees. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits has been included in Note 1(g).

2008 2007 $ $

NOTE 14: OTHER LIABILITIES (CURRENT)Other Payables 5,408 439

Subscriptions Received in advance 226,199 8,535

231,607 8,974

NOTE 15: INTEREST BEARING LIABILITIESCurrent Lease Liability 88,754 -

Non-current Lease Liability 357,974 -

446,728 -

NOTE 16: RESERVESBalance at beginning of financial year 4,858,951 4,709,762

Revaluation increment in investments 1,023,339 149,189

Asset Revaluation Reserve 5,882,290 4,858,951

NOTE 17: ACCUMULATED SURPLUSES / (DEFICIT) Accumulated surpluses at the beginning of the year 9,863,127 4,950,530

Reclassification of Asset Reserves - 3,184,077

Net profit attributable to the association 248,196 1,728,520

Accumulated Surpluses at the End of the Year 10,111,323 9,863,127


NOTE 17: ACCUMULATED SURPLUSES / (DEFICIT) continued 2008 2007 $ $

Represented By Division Motor Trades Association – Queensland 7,386,263 7,144,188

Australian Automobile Dealers Association (Qld) 1,934,472 1,947,529

Queensland Motorcycle Industry Division 16,236 15,598

Rental Vehicle Industry Division (765) (675)

Automotive Engineers Division 86,692 81,454

Engine Reconditioners Association of Queensland 1,821 3,177

National Auto Collision Alliance 8,028 7,453

Queensland Tyre Dealers and Retreaders Division 29,972 27,404

Used Car Division 125,716 127,009

Auto Electrical Specialists Division 29,497 28,414

Auto Parts Recyclers Division 7,099 6,900

Automotive Undercar Division 26,448 25,832

Service Station & Convenience Store Association of Queensland 209,525 223,932

Queensland Farm & Industrial Machinery Dealers Division 250,319 224,909

10,111,323 9,863,127

NOTE 18: CONTINGENT ASSETS/LIABILITIES

Contingent AssetsMTAQ has provided an amount of $120,000 to Mr Peter Lockart in relation to a court case dealing with a dealer franchise agreement. As at 30th June 2008 $116,827 has been expensed against this facility. The return of this money is contingent of the outcome of the court case hearing.

Contingent LiabilitiesThe income tax status for MTAQ Ltd is currently under review for dividends received by this entity. Dividends received for the 2006/07 financial year were $333,780 and an amount of $235,556 was received for the 2007/08 financial year.



2008 2007 $ $

NOTE 19: CASH FLOW INFORMATION a) Reconciliation of Cash

Cash on hand 1,200 700

Cash at bank 632,132 126,639

Cash on deposit 3,389,313 3,057,867

4,022,645 3,185,206

b) Reconciliation of net cash provided by operating activities to operating surplus after income tax:

Operating Surplus/(Deficit) 248,196 1,728,520

Non-cash flows in operating profit:

Depreciation 249,299 250,301

Decrease/Increase in Doubtful Debts - (585)

Borrowing costs (350) -

Loss (Profit) on sale of assets 9,246 42,370

Changes in assets and liabilities:

Decrease/(Increase) in receivables (34,179) (687,588)

Decrease (Increase) in Training debtors 219,880 -

Decrease/(Increase) in inventory (22,367) (5,050)

Decrease/(Increase) in prepayments 234,202 (324,993)

Increase/(decrease) in Accounts Payable (179,635) 360,835

Increase/(decrease) in provisions (3,604) -

Increase/(decrease) in deferred income 222,633 (439,171)

Increase/ (decrease) in GST receivable 4,576 -

Increase / (decrease) in provisions 44,527 28,557

Increase / (decrease) in interest receivable (28,162) -

Net Cash Provided by / (used in) Operating Activities 964,262 953,196

c) Credit-Standby Arrangement & Loan Facilities

MTAQ has a bank overdraft facility amounting to $500,000. At 30 June 2008 the facility remained unused. The facility is reviewed annually and interest rates are variable.


NOTE 20: RELATED PARTIES

a) Officers’ Remuneration and Other Transactions

The Board Members’ businesses are all current members of the association and also purchase Stationary from the association which are on standard terms.

MTQ Insurance Services Limited paid Motor Trades Association of Queensland dividends to the value of $100,000 in the 2008 financial year while Mr Ian Field was the Treasurer for MTA Queensland and a Director of MTQ Insurance.

Gregory Klease was paid $35,000 and David Weatherall was paid $6,069 for providing consulting services to the group.

Apart from the above, there was no other Related Party Transaction during the financial year ended 30th June 08

Names of Officers who held office during the year are:

Gregory Klease Len Daddow Rodney Pether

David Weatherall Dean Turner John Ruddick

Ian Field Glen Ford Les Tickell Daryll Searle

Charlie Serchen Ian Goble Paul Peterson

Graham Winter Steve Eaton David Fraser

Tim Kane Graham Kirkbride

NOTE 21: SEGMENT REPORTING The Association operates in the motor industry sector providing benefits to members of the Association within Queensland.

2008 2007 $ $

NOTE 22: INTER-DIVISION CONTRIBUTIONS AND PAYMENTSa) Amounts contributed / donated by divisions to the Corporate

division of MTA Queensland - 102,811

b) Amounts contributed / allocated by MTAQ Corporate to other MTAQ divisions representing $20 membership renewal. 27,780 -

c) Amounts contributed / allocated by MTAQ Corporate to other MTAQ divisions representing $40 membership renewal. - 56,400

d) Success fees at the rate of 36% paid to Corporate division of MTAQ for monies raised by divisions’ activities. 125,897 218,419

The above amounts are eliminated upon consolidation of the Corporate division with other divisions and are not disclosed in revenues and expenses disclosed in Notes 2 and 3 respectively. Refer Note 17 for list of divisions.

NOTE 23: FINANCIAL RISK MANAGEMENTa. General Objectives, Policies and ProcessesMotor Trades Association of Queensland (MTAQ) is exposed to risks that arise from its use of financial instruments. This note describes the company’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the entity’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.



The principal financial instruments from which financial instrument risk arises are:

- Trade receivables

- Cash at bank

- Trade payables

- Leased liability

The Board of MTAQ has overall responsibility for the determination of the MTAQ risk management objectives and polices and, designing and operating processes that ensure the effective implementation of the objectives and policies to the entity. MTAQ’s risk management policies and objectives are therefore designed to minimise the potential impacts of these risks on the results of , where such impacts may be material. The Board receives bi annual reports from the Finance Manager of MTAQ, through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. The overall objective of the Board is to set polices that seek to reduce risk as far as possible without unduly affecting MTAQ competitiveness and flexibility. Further details regarding these policies are set out below:

b. Credit RiskCredit risk is the risk that the other party to a financial instrument will fail to discharge their obligation resulting in MTAQ incurring a financial loss. This usually occurs when debtors fail to settle their obligations owing to MTAQ.

There is no concentration of credit risk with respect to receivables. The group does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the company.

2008 2007 $’000 $’000

The maximum exposure to credit risk at balance date is as follows:

Receivables 408,652 302,612

The company’s most significant customer accounts for $24,994 of trade receivables at 30 June 2008 (2007: $5,247).

c. Liquidity RiskLiquidity risk is the risk that the entity may encounter difficulties raising funds to meet commitments associated with financial instruments. It is the policy of the Board of Directors of MTAQ, to maintain adequate committed credit facilities. The unused bank overdraft credit facility at balance date was $500,000. The bank overdraft facilities may be drawn down at any time but may be terminated by the bank without notice.

Carrying Contractual Amount Cash flows < 6 mths 6- 12 mths 1-3 years $’000 $’000 $’000 $’000 $’000

Maturity Analysis - 2008

Financial LiabilitiesTrade and other payables 756,365 756,365 740,480 15,885 -

Lease liability 446,728 446,728 43,902 44,853 357,973

TOTAL 1,203,093 1,203,093 784,382 60,738 357,973


NOTE 23: FINANCIAL RISK MANAGEMENT continued

Maturity Analysis - 2007 Carrying Contractual Amount Cash flows < 6 mths 6- 12 mths 1-3 years $’000 $’000 $’000 $’000 $’000

Financial LiabilitiesTrade and other payables 935,990 935,990 935,990 - -

TOTAL 935,990 935,990 935,990 - -

d. Interest Rate Risk

The company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities, is as follows:

Weighted Average Floating

Effective Interest Rate Interest Rate Non-Interest Bearing Total

2008 2007 2008 2007 2008 2007 2008 2007

% % $’000 $’000 $’000 $’000 $’000 $’000

Financial Assets

Cash 8.12 6.45 4,022,645 3,185,206 4,022,645 3,185,206

Receivables - - 1,263,159 1,308,095 408,652 302,612

Total Financial Assets 4,022,645 3,185,206 1,263,1592 1,308,095 4,431,297 3,487,818

Financial Liabilities

Trade & other payables 756,365 935,990 756,365 935,990

Lease liability 4.29 - 446,728 - - - 446,728 -

Total Financial Liabilities 446,728 - 756,365 935,990 1,203,093 935,990

e. Net Fair ValuesThe net fair values for all assets and liabilities approximates their carrying values. No financial assets and financial liabilities are readily traded on organised markets in a standardised form. Financial assets where the carrying amount exceeds net fair values have not been written down as the company intends to hold these assets to maturity.

f. Sensitivity Analysis Management has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. This sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in this risk.

At 30 June, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining constant would be as follows:

2008 2007 $’000 $’000

Change in profit

- Increase in interest rate by 2% 70 60

- Decrease in interest rate by 2% (70) (60)

Change in equity

- Increase in interest rate by 2% 70 60

- Decrease in interest rate by 2% (70) (60)



Short-term Post employment benefit benefits

NOTE 24: KEY MANAGEMENT PERSONNEL COMPENSATION2008Total compensation 593,613 -

2007Total compensation 455,075 -

2008 2007 $’000 $’000

NOTE 25: AUDITORS REMUNERATIONAuditAudit of the financial report 38,301 26,398

Non-audit Services Other services 7,677 23,166

Total Auditors RemunerationThe directors are satisfied that the provision of non-audit services, during the year, by the auditor (or another person or firm on behalf of the auditor), is compatible with general standard of independence for auditors imposed by corporations Act 2001.

2008 2007 Note $ $

Note 26: Capital and Leasing CommitmentsFinance Lease Commitments

Payable — minimum lease payments

— not later than 12 months 106,217 -

— between 12 months and five years 387,350 -

Minimum lease payments 493,565 -

Less future finance charges 46,837 -

Present value of minimum lease payments 15 446,728 -

The finance lease on office equipment comprises a 5 year lease which commenced in October 2007 for $222,054.81 and January 2008 for $275,066.24. The equipment is being leased directly from the manufacturer with lease payments paid monthly. The interest rate implicit in that lease is 4.20% and 4.37%.

NOTE 27: ACCOUNTING STANDARDS ISSUED NOT YET EFFECTIVEThere are a number of accounting standards that have been issued but are not yet effective. The organisation does not expect any material impact on financial statements from the impending changes. However, various additional disclosures will be required in the financial statements in future periods.

NOTE 28: EVENTS AFTER BALANCE SHEET DATENo events have occurred subsequent to the balance date that would require adjustment to, or disclosure in, the financial report.

NOTE 29: REGISTERED OFFICEMotor Trades Association – Queensland 11-15 Buchanan Street WEST END QLD 4101


Declaration by Members of the Board of MTA Queensland

In the opinion of the board of MTAQ the financial report as set out on pages 28 to 49.

1. Present fairly the financial position of the Motor Trades Association of Queensland Industrial Organisation of Employers as at 30 June 2008 and the results and cash flows of the association for the year ended on that date in accordance with Australian Accounting Standards and other mandatory professional reporting requirements.

2. At the date of this statement, there are reasonable grounds to believe that Motor Trades Association of Queensland Industrial Organisation of Employers will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the board of MTAQ and is signed for and on behalf of the Committee by:

Gregory Klease President

Ian Field Treasurer

Dated: this 7th day of November 2008.


SCOPE

The Financial Report and Directors’ ResponsibilityThe financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements, and the declaration by the members of the board for Motor Trades Association of Queensland Industrial Organisation of Employers (MTAQ), for the year ended 30 June 2008.

The board of MTAQ are responsible for the preparation and true and fair presentation of the financial report in accordance with the Industrial Relations Act 1999. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

AUDIT APPROACHWe have conducted an independent audit in order to express an opinion to the members of the association. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgment, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Industrial Relations Act 1999, including compliance with Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the association’s financial position, and of its performance as represented by the results of its operations and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

• examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and

• assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.

While we considered the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

INDEPENDENCEIn conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements.

Independent Audit ReportTo the Members of Motor Trades Association of Queensland Industrial Organisation of Employers


INDEPENDENT AUDIT REPORT continued

AUDIT OPINIONIn our opinion, the financial report of Motor Trades Association - Queensland Industrial Organisation of Employers is properly drawn up:

a) so as to give a true and fair view of the organisation’s:

i) financial affairs as at 30 June 2008; and

ii) income and expenditure and the results for the year;

b) in accordance with the Australian Accounting Standards including the Australian Accounting Interpretations; and

c) in accordance with the provisions of the Industrial Relations Act 1999.

Based on the above scope of work nothing has come to our attention that causes us to believe that the organisation has not kept satisfactory records for the financial year, including records of the:

i) sources and nature of the organisation’s income; and

ii) nature and reasons for the organisation’s expenditure.

BDO Kendalls (QLD)

D P Wright Partner Brisbane

Dated: 11th November 2008


Accounting Officer’s Certificate

I, Kathy Winkcup, being the officer responsible for keeping the accounting records of the Motor Trades Association of Queensland Industrial Organisation of Employers, certify that as at 30 June 2008 the number of financial members of the Association was 1592, and the number of non-financial members was nil.

In my opinion:

(i) the attached financial report shows a true and fair view of the financial affairs of the Association as at 30 June 2008;

(ii) a record has been kept of all moneys paid by, or collected from, members and all moneys so paid and collected have been credited to the bank account to which those moneys are to be credited, in accordance with the rules of the Association;

(iii) expenditure incurred by the Association was approved under the Association’s Rules before it was incurred.

(iv) with regard to the funds of the Association raised by compulsory levies from members, or funds other than the General Fund operated in accordance with the rules, no payments were made of any such fund for purposes other than those for which the fund was operated;

(v) all financial benefits granted to employees were allowed under the Associations rules. There were no loans or financial benefits given to persons holding office in the Association;

(vi) the register of members of the Association was maintained in accordance with the Act.

Kathy Winkcup Chief Financial Officer

Dated:7th November 2008


Certificate by Members of the Board of MTA Queensland

In the opinion of the board of management the financial report:

(i) Present fairly the financial position of the Motor Trades Association of Queensland Industrial Organisation of Employers as at 30 June 2008 and the results and cash flows of the association for the year ended on that date in accordance with Australian Accounting Standards and the Industrial Relations Act.

(ii) At the date of this statement, there are reasonable grounds to believe that Motor Trades Association - Queensland Industrial Organisation of Employers will be able to pay its debts as and when they fall due.

(iii) Meetings of the Board of MTAQ were held during the year ended 30 June 2008, in accordance with the rules of the association.

(iv) To the knowledge of the Board of Management, there have been no instances where records, rules or copies of them have not been given to the Association’s members under the Act.

(v) The Audit report and accounts for the Associations financial year ended 30 June 2008 have been presented to an annual general meeting of the Association, and given to all financial members at that time.

This statement is made in accordance with a resolution of the board of MTAQ and is signed for and on behalf of the Committee by:

Gregory Klease President

Ian Field Treasurer

Dated: 7th day of November 2008


Auditors Independence Declaration

11th November 2008

The Directors MTA Queensland 11-15 Buchanan Street WEST END QLD 4101

Dear Directors

In relation to our audit of the Financial Report of Motor Trades Association of Queensland Industrial Organisation of Employers for the year ended 30 June 2008, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

Yours faithfully

BDO Kendalls (QLD)

D P Wright Partner


Greg Klease, President – representing Central Queensland region

Rod Pether, Vice President – representing North Queensland region

John Ruddick Chairman Queensland Tyre Dealers & Retreaders Division (QTDRD)

Ian Field, Treasurer/Secretary – representing South East (South) region and

President Australian Automobile Dealers Association (Qld) (AADA(Q))

David Weatherall, Vice President – Chairman National Auto Collision Alliance (NACA)

Len Daddow Deputy Chairman, Australian Automobile Dealers Association

Steve Eatonrepresenting Far North Queensland region

Glen FordChairman Auto Parts Recyclers Association (APRA)

David FraserChairman Queensland Farm and Industrial Machinery Dealer Division (QFIMDD)

Ian GobleChairman Automotive Undercar Division (AUD)

Mark Huston representing South East (North) region

Tim Kane Chairman Service Station & Convenience Store Association Qld (SSCSAQ)

Graham Kirkbride Chairman Engine Reconditioners Association Qld (ERAQ)

Paul Peterson Chairman Queensland Motorcycle Industry Division (QMID)

Charlie Serchen Chairman Combined Mechanical Repairer Specialists Division (CMRSD)

John O’Kearney Chairman Used Car Division (UCD)

Les TickellChairman Rental Vehicle Industry Division (RVID)

Rob Vandersee Chairman Queensland Farm and Industrial Machinery Dealer Division (QFIMDD)

Graham Winter representing South West region

Board Members 2007-2008

11-15 Buchanan Street, West End Queensland 4101PO Box 3359, South Brisbane Queensland 4101

p: (07) 3237 8777 f: (07) 3844 4488 tf: 1800 177 951www.mtaq.com.au

MTA Institute of Technology247 Bradman Street, Acacia Ridge, Queensland 4110

PO Box 344 Acacia Ridge, Queensland 4110p: (07) 3722 3000 f: (07) 3722 3030 tf: 1800 884 137

www.mtaq.com.au

Documents

MTAQ 2008 Annual Report