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Industry association government relations strategy

Emily Hollosy December 7, 2009

4 min read

The Australian Automotive Aftermarket Association (AAAA) is the national industry association representing manufacturers, distributors, wholesalers, importers and retailers of automotive parts, accessories, tools and equipment in Australia.

The AAAA now represents nearly 1,300 companies at all levels of the auto aftermarket supply chain and our industry collectively turns over $5 billion per annum, employs 30,000 people and exports $600 million worth of products each year.

GOVERNMENT RELATIONS STRATEGY

Developing an integrated and co-ordinated government relations strategy has been a major focus of the AAAA over the past two years. In December last year we appointed a government relations consultant and they have assisted us in refining our strategy, which was formally approved by the AAAA National Council in June 2009.

The key objectives of the strategy are to provide industry advocacy to support the interests and the sustainability of AAAA members and the industry as a whole.

This will be achieved through:

Industry policy and product advocacy on both a proactive and reactive basis.
Positioning and influencing government and other stakeholders for the advantage of our industry

Assisting members in gaining access to government grants and assistance programs.

The importance of industry policy and product advocacy cannot be overstated, as it has the ability to significantly impact on the viability of individual companies and entire sectors of our industry.

In the past we have taken the approach of making ourselves available to work with the various bodies that develop policy and regulation that impact upon the aftermarket sector and, while we will continue to do this, due to a combination of technological advances, environmental factors and a significant increase in government intervention, we now believe that we need to add a new dimension to our activities in this area.

Activities will now include:

Advocating for changes in the regulatory environment (including harmonisation of regulations and standards).
Developing industry position papers on key product areas to enable us to present an objective and researched position to government.
Positioning our industry to key influencers highlighting the value of the sector in terms of economic activity, employment and exports.

RATIONAL AND RESEARCHED

The key messages to take out of the case studies are that governments do listen to industry associations that present rational and researched arguments, and it is possible to achieve meaningful changes in government policy with limited resources.

To achieve this, organisations must have a clear strategy in place with achievable objectives and be in a position to mobilise individual members when required to support the overall industry position.

In the case of the AAAA, we are hopeful that the developments of the last few months will result in more meaningful and constructive future engagement with government agencies that regulate the sale and fitment of aftermarket parts and accessories.

TESTING THE STRATEGY

Case study 1.

On 16 July the NSW Minister for Roads Michael Daley announced that, effective 1 August, all modifications to vehicle suspension would require certification by an independent engineer. This was announced under the headline ‘Tough new rules for car hoons’ and was released without any consultation with industry or user groups.

We immediately wrote to the Minister seeking a meeting and issued a media release calling for the deferral of the regulation to enable appropriate stakeholder consultation. We also worked in collaboration with driver groups and the media to ensure the general public was aware of the impact of the proposed regulations.

These actions generated a significant public backlash and as a result, the AAAA, in conjunction with 4WD NSW/ACT, was given the opportunity to meet with the Minister to detail the catastrophic impact this regulation would have on the industry and NSW road users. After a 30 minute presentation the Minister announced the deferral of the regulation and the formation of a working group to assist in developing a regulation that is workable and has the support of stakeholders.

We are now working with the Roads and Traffic Authority (RTA) on the development of a sensible regulation that meets the Government’s road safety objectives without detrimentally impacting on industry or law abiding car owners.

Cast study 2.

Again without any stakeholder consultation, the Western Australian Department of Transport (DPI) introduced a regulation that came into effect on 20 April that requires all vehicle owners to undertake IM240 testing for engines that have been ‘significantly modified’. Unfortunately no workable definition of ‘significantly modified’ was provided in the regulation.

In addition, the regulation required any owner that replaces their catalytic converter with an OEM equivalent part to undertake an IM240 test however, if they fit an OEM branded part no test is required. This unnecessary and onerous regulation effectively created a Government sanctioned monopoly in WA for vehicle manufacturers and their dealers and directly contravened the Trade Practices Act.

In addition to the technical shortcomings in the regulation, the WA Government introduced the regulation despite the fact that there is only one, privately owned IM240 testing station in the state, and did so with no safety net for consumers to regulate the price, quality and waiting times for tests undertaken by the private operator.

Again as a result of the industry and public opposition to this regulation, WA Transport Minister Simon O’Brien intervened and on 11 September his department announced a moratorium for up to six months on IM240 vehicle emissions testing to enable the formation of a broad industry based committee made up of industry and departmental representatives to design a testing regime that limits any negative impacts on industry and consumers.

Emily Hollosy

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Industry association government relations strategy

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