Oz Government Upholds Limits on Parallel Car Imports

Car dealers and motorists are among potential winners in a sweeping review of Australia’s competition policy by an independent panel.

Treasurer Scott Morrison says the government will partly or fully support 44 of the  panel’s 56 recommendations and remains open to the other 12, depending on the outcome of further review and consultation with the states and territories and other stakeholders.

One of the recommendations rejected by the government in the first major review of Australia’s competition laws and policy in more than 20 years is that restrictions on the parallel importation of secondhand cars be removed.

The review calls parallel import restrictions “effectively an implicit tax on Australian consumers and businesses” that shield local producers from international competition.

It says restrictions on parallel imports should be removed so individuals or retailers can import certain products without going through an authorized distributor.

The government, mindful of criticism that such a move could allow unsafe and polluting used vehicles from countries such as Japan to enter Australia, rejects the proposal.

Australian Automobile Assn. CEO Michael Bradley says the package of economic reforms will provide increased choice and competition for Australian motorists.

He says the AAA is pleased that government has committed to work with consumer groups to allow consumers to access and use their own vehicle data to improve choice in the marketplace.

“The AAA believes that data captured and stored within a vehicle’s own electronic systems should be made available to the owner of that vehicle, or a third party nominated by the owner, such as their preferred vehicle repairer or roadside assistance provider,” Bradley says in a statement.

“From a motorist’s perspective, communications and telematics technologies have progressed rapidly in recent years and there is a need to ensure that vehicle manufacturers are not able to restrict access to data or leave consumers worse off.”