Inquiry Into Tougher Laws For 'lemon' Cars

Sydney Morning Herald

Saturday May 31, 2008

Ian Porter

IF THE experiences of US motorists is anything to go by, each year Australians buy up to 15,000 new-car "lemons" - cars that dealers fail to properly repair and manufacturers refuse to replace.

Worryingly for us, as many as 1.5 per cent of cars sold in the US - and many of our cars come from the same factories - are classed as duds under US consumer laws.

Each problem car brings with it disruption to lives, anxiety, frustration and family stress that customers can well do without.

It may also bring financial hardship if it's a tool of trade such as a salesman's office or a delivery vehicle. A lemon's effect spreads far and wide.

It may be only a small proportion of the approximately 1 million vehicles sold each year but the impact is heavy on those involved and that is why the Victorian Government is examining "lemon laws" later this year.

The Victorian Minister for Consumer Affairs, Tony Robinson, has commissioned an inquiry and consultation with the public and the industry to determine the extent of the problem.

The inquiry, to be led by the MP for Mordialloc, Janice Munt, aims to have a draft report ready for consultation by the end of March. A revised draft will go to the minister, with the aim that legislation can be ready for passage before the end of next year.

But the industry is concerned that the inquiry is not about determining whether laws should be passed but which laws should be passed.

The car makers fear the decision to legislate has already been made, regardless of the recent quality track record, which suggests things have improved markedly over the past decade.

It is even disturbed by the use of the term "lemon laws", said the chief executive of the Federal Chamber of Automotive Industries, Andrew McKellar.

"It is worth noting that the term 'lemon laws' is somewhat pejorative and I think - for an industry that is so important to Victoria - to be characterising a legal reform targeted at the automotive industry in those terms is not necessarily putting the best spin on it," McKellar said.

Munt is conciliatory but is also following a course that leads to legislation.

"Ideally, what we want is to come to a position that is fairly comfortable for everyone," she said. "We want to bring everyone along with us. We think that would be absolutely best. At the moment I think we are looking at an amendment to the Fair Trading Act."

© 2008 Sydney Morning Herald

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