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The Board of MTA, at its December meeting, unanimously resolved to resign MTA NSW from the MTAA Federation. This decision was, later that day, unanimously endorsed by the Governing Council of this Association – your elected representatives.
MTA Queensland [MTA-Q] and the Victorian Automobile Chamber of Commerce [VACC] had resigned from the MTAA Federation 4 years ago and 2 years ago respectively.
MTA NSW’s decision was based on many factors firstly, with Victoria and Queensland gone MTAA only represented 50% of the motor industry across Australia and it was felt that this meant MTAA was no longer a truly national voice for the motor industry.
Secondly we were disappointed with the effectiveness of MTAA’s lobbying on a number of issues important to the industry. We received no support when we put forward the Cash for Klunkers proposal which was a programme introduced successfully in the USA, UK, Germany, France and many other advanced economies in Europe.
We were also unhappy that there seemed to be no ability to gain any useful legislative measure to assist businesses being bullied by mega corporations [e.g. motor manufactures/distributors and their dealer franchise contracts, smash repairers and insurers, independent service stations and the oil companies etc. etc.]
In fairness it must be said MTAA played a leading role in the Government providing support to dealers through the Auscar arrangement.
It was MTA NSW’s belief that the MTAA had become too bureaucratic and much too expensive – MTA NSW was required to pay well over $600,000 a year in subscriptions and other subsidies. It was felt this was not good value for MTA members’ money.
There was also considerable concern that the Executive Director of MTAA also managed the administration of the MTAA Superannuation Fund. It was felt that no one person, no matter how talented that person is, can effectively manage a Superannuation Fund that has in excess of $6 billion in employees’ funds and a major national Association. Superannuation Funds’ management has become much more complex in the light of the Global Economic Crisis.
Since leaving the Federation on 31st December last MTA NSW has worked intensely, in co-operation with MTA-Q and VACC [in all our three Associations represent some 80% of the motor industry across Australia], in an endeavour to convince the remaining members of MTAA that the organisation needs major reform if it is to be effective in the future and provide value for money so that we can, in good conscience, return to membership.
We have had one major meeting of all the States, Territories and allied groups to date.
While negotiations are continuing I must say that there appears little enthusiasm among the remaining members of MTAA for any major overhaul of that organisation. But we will keep trying for the time being.
If our efforts come to nothing than MTA NSW, VACC, MTA-Q, and MTA Tasmania may well have to form a new National Association to represent the interests of the 80% of the Australian motor industry that carry on business in their States.
By James McCall
Chief Executive
phone: 02 9213 4222 fax: 02 9212 6889 Motor Traders' Association of NSW
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