Doug Shave

Doug Shave

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    Legislation will increase safeguards for used vehicles: Minister

    19/10/2000 10:13 AM
     
    19/10/00

    Changes to used vehicle warranties are planned in legislation introduced into State Parliament by Fair Trading Minister Doug Shave.

    “The proposed changes are the result of a review of the Motor Vehicle Dealers Act by an industry reference group and a separate National Competition Policy review,” Mr Shave said.

    Key changes proposed include:
    • statutory warranties to be required for used four-wheel drive passenger vehicles;
    • an updated warranty system based on a vehicle’s age and the distance it has travelled;
    • increased penalties of up to $20,000 for illegal ‘backyard’ dealers;
    • trust accounts for consignment sales; and -increased disciplinary power for the industry licensing board.

    Mr Shave said the introduction of warranties for four-wheel drives recognised the growth in their popularity as a family car.

    “I have introduced the changes in a ‘Green Bill’ so that there can be a three-month public comment period and changes made if required before the bill is debated,” he said.

    Proposed changes to the powers of the Motor Vehicle Dealers’ Licensing Board mean it will not only be able to disqualify dealers but also impose penalties, attach conditions to licences and issue reprimands and cautions.

    “Increases in penalties for illegal operators and strengthening the powers of the board will protect the interests of licensed dealers and the public,” the Minister said.

    “The bill is a package of well-considered reforms to current laws which the industry itself wants to have implemented as soon as possible.”

    Dealers, sales staff and yard managers will all continue to be licensed under the revised framework.

    Media contact: John Clune - 9213 6500