Motor Trader February 2014

FEB 2014

THE

LIVING

LEGEND SIR JACKIE STEWART

+

MEMBERS CLASSIC: 1968 HOLDEN HK MONARO

OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

The indusTry super fund for The auTomoTive indusTry.

www.mtaasuper.com.au motor Trades association of australia superannuation fund pty Ltd (aBn 14 008 650 628, afsL 238 718) is the Trustee of mTaa superannuation fund (aBn 74 559 365 913). you should consider whether or not mTaa super is appropriate for you. The mTaa super product disclosure statement (pds) can be obtained by calling us on 1300 362 415. you should consider the pds in making a decision.

Contents Official Publication of the Motor Trades Association of Queensland

Follow us on Facebook www.facebook.com/MTAQueensland

HEAD OFFICE Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 P.O. Box 4530, Eight Mile Plains, Qld 4113 Tel: 07 3237 8777 Fax: 07 3844 4488 Toll Free: 1800 177 951 Email: publications@mtaq.com.au Website: www.mtaq.com.au EDITOR Jonathan Nash ART DIRECTOR Marco Ilinic INDUSTRIAL RELATIONS Ted Kowalski Michelle Chadburn POLICY Kellie Dewar, General Manager MTA Queensland ADVERTISING ENQUIRIES Emily Metelmann 07 3237 8784 Facsimile: 07 3844 4488 Email: emilys@mtaq.com.au

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EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777

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SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually MOTOR TRADER PUBLISHING POLICY Motor Trader is the official publication of the Motor Trades Association of Queensland. The role of Motor Trader is to inform members of current issues and legislation affecting the industry. As such it can be regarded as the business magazine for the Queensland motor industry. The role of Motor Trader is not to be in competition with the technical magazines already on the market. It will advise of new vehicles being released and of the latest technology incorporated into them; it will advise of latest technology affecting members in each of the MTA Queensland Divisions; it will keep members abreast of the latest in motor industry training and industrial affairs; and it will keep members informed of the latest technical aids available through MTA Queensland Member Services, which will assist members in staying ahead of the technological revolution presently being encountered within the motor industry.

The publisher reserves the right to omit or alter any advertisement and the advertiser agrees to indemnify the publisher for all damages or liabilities arising from the published material.

02 From the editor

MTA QUEENSLAND ABN: 74 028 933 848 CORPORATE PARTNERS

04 Policy/Viewpoint

16 Members Classic HOLDEN HERO: 1968 HK MONARO

07 News

19 MEMBERS ESSENTIALS

DEALER ASSOCIATION TO REINVIGORATE INDUSTRY

13 BMW I3 HERALDS NEW ERA

FOR ELECTRIC CARS

14 RUNNING OUT OF PATIENCE? 32 SCHUMACHER’S GREATEST BATTLE

20130134

08 MTA Q&A IAN TOMLINSON: RGM MAINTENANCE Feature 10 THE FLYING SCOTSMAN:

JACKIE STEWART

20 Training matters 22 Members matters 26 Member profiles 30 Industrial relations 31 Investment matters

MARKET WRAP

33 Industry insight

BENCHMARKS, A SELF-FULFILLING PROPHECY? February 2014 Motor Trader | 1

From the editor

H

JONATHAN NASH EDITOR

2 | Motor Trader February 2014

ELLO AND WELCOME to the February edition of Motor Trader.

In this month’s edition, MT interviews Formula One legend Sir Jackie Stewart. The three-time World Champion, team manager, businessman and broadcaster talks about his life in motor racing and how, through on-track tragedy, he was motivated to make the sport safer and shape it into what it is today.

We also take a look at the career of the equally legendary Formula One champion Michael Schumacher who, at the time of going to press, was still seriously ill in a coma following a skiing accident in December.

In our Members Classic section we talk to Mark Howard, owner of a 1968 HK Holden Monaro. Mark has put plenty of time and effort into the machine you can see on page 16.

We also check out the latest work of the maestro’s at BMW. The electric BMW i3 had its debut at Brisbane BMW in January and, though not available on Australian roads until the end of the year, the technology and know-how that has gone in to creating the car could be a game-changer.

In training matters, MT talks to Brisbane City Council’s First Year Apprentice of the Year, Justin Ware, and also to Luke Roxburgh, an inspirational young man who was terribly injured in an accident a decade ago but who has returned to the industry to complete his apprenticeship.

We also look at the business of the Madill family. After nearly 80 years, and starting from one location in Gympie, three generations of the family have now worked in the business and it continues to go from strength to strength.

MT also talks to Mackay MTAQ members McCarthy Panel Works about their achieving I-CAR Gold Class Professional status, and to Mark Dodge Autos from Cairns and their creation of Queensland’s first RACQ Motoring Store.

Our MTQ&A this month is with Ian Tomlinson, Business Development Manager for RGM Maintenance, a company with locations from Darwin to Adelaide whose business varies from servicing heavy haulage vehicles for national firms, to war zone-bound vehicles for the Australian Armed Forces – with a number of unique projects inbetween.

And we celebrate the career of Ted Kowalski, who has chalked up 30 years with MTAQ as its Industrial Relations Manager.

As always, we will endeavour to bring you news and insight into the automobile industry, the most up-todate information regarding training opportunities and, of course, continue to highlight members’ interests with the MTAQ&A and Members Classics features.

I hope you enjoy this edition of Motor Trader, and if you have a story you think is worth telling, want to appear in Member Profiles or have a classic car, motorbike or truck you would like to see featured, then please don’t hesitate to contact me.

Jonathan Nash jonathann@mtaq.com.au

LAST MONTH, MTA Queensland ran a Special Member Offer, in conjunction with our corporate partners at Commonwealth Bank, offering members the opportunity to receive a free comparison of EFTPOS terminal fees and save money with new lower fees and special rates.

Members who took up the free comparison offer were also entered into a draw to a win a $500 Flight Centre Gift Voucher and Kamson Mechanical Services of Mt Warren Park were the lucky prizewinners.

Congratulations and enjoy the break!

Automotive Air Conditioning Technology

Light Vehicle Mechanical Technology

Automotive Tyre Servicing Technology (Light & Heavy)

Automotive Body Repair Technology

Mobile Plant Technology

Heavy Commercial Vehicle Mechanical Technology

Automotive Underbody Technology

Automotive Sales

Automotive Electrical Technology

Management Courses Motorcycle Mechanical Technology

Automotive Refinishing Technology Automotive Pre-vocational Courses

ON THE JOB TRAINING IN YOUR WORKSHOP In most cases, Qld Government funding meets the cost of training

Call us on 1800 884 137 or visit www.mtait.com.au to register your apprentice

Policy/Viewpoint

KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND

W

ELCOME TO 2014 and Happy New Year.

My family and I had a joyful Christmas and New Year Break.

I trust your festive season was enjoyable too.

Recent economic indicators show that the State’s economy is ticking along quite well. Tempering this is the concerning fact that two thirds of Queensland has been drought declared since late last year.

It is not just the primary industry sector that is impacted by drought.

Our members have businesses in these and adjacent areas and experience the financial downturn on their enterprises too. We will raise this in our advocacy with Government.

RED TAPE REDUCTION

A bugbear for members is the insidious reach of red-tape into every corner of business. The Queensland Government has been making inroads with the aim of cutting red tape by 20 per cent. The Greentape Reduction Project has resulted in administration reductions and savings. I encourage members to try the new online tool, Forms and fees finder, to check if there are changes applicable to their businesses.

Please don’t forget our own Green Stamp Program to “assist small to medium businesses in the automotive trades to incorporate processes and practices that avoid, reduce, reuse, 4 | Motor Trader February 2014

recycle and dispose of their wastes in an environmentally sensitive manner.”

At the Commonwealth level, 19th March 2014 has been designated as the first repeal day with the introduction of an Omnibus Red Tape Reduction Bill.

It’s the first step towards cutting $1 billion in red and green tape each year to benefit business and not-forprofit organisations.

At the national level there are more than 130 regulators. The States and the Territories have some 350 regulators.

That is over 480 regulators that has some influence on business in one way or another. We look forward to the actual inroads into red tape.

SOBERING STATISTICS

Statistics usually have a sting in their tale. This applies to road deaths.

The bad news is that for 12 months ended December, nationally there were 1,193 road deaths. This was an 8.4 per cent reduction compared to the total for the 12 month period ended December 2012. At the Queensland state level, there was a small reduction from 280 to 271, or 3.2 per cent, which was below the national average.

THE ECONOMY

Queensland’s economy is on the improve. This is the finding of Comsec’s State of the State Report.

It indicates that the State has the fastest economic growth rate in the nation.

Business investment in September quarter was 27 per cent above decade average levels.

The Australian Chamber of Commerce and Industry January 2014 national survey of business confidence for the December quarter indicated that there was a “general upward trend in many indicators such as sales and profitability.” These improvements are good news but it must be considered in the context of a “low base and are mainly serving to bring conditions back toward more normal levels.”

The Reserve Bank Board meets for the first time in 2014 on Wednesday 5 February. The recent Consumer Price Index (CPI) which showed an unexpected increase in the inflation

rate virtually means that there will be no interest rate cut in the near term.

The CPI over the three months to end of December 2013 rose 0.8 per cent - more than twice the anticipated increase. For the year, the inflation rate rose to 2.7 per cent - that is above the current cash rate of 2.5 per cent.

The increases were attributed to big rises in fruit and vegetable prices and the cost of domestic and international travel. Interestingly, these increases were offset to some extent by lesser falls in petrol, computing equipment, pharmaceuticals and women’s clothing.

The Australian dollar has slowly dropped to a low of $US0.88 due to some degree to the low employment growth. The impact of the inflation rate on the dollar is a case of “wait and see”.

On another matter, the Queensland Government is preparing a “whole of government economic strategy” which is to be released before the end of the financial year. We will keep an eye out for it.

ADVOCACY

It’s our practice to make a prebudget submission to the Federal Treasury. We will do so for the 201415 Federal Budget. One matter we will be referring to was the Commonwealth Government’s ending from 1 January 2014 the tax concessions to small business linked to the Minerals Resource Rental Tax. This includes the $6,500 instant asset write-off for small businesses and sole traders reducing the limit to $1,000 and the loss carryback provisions We support the repeal of the Minerals Resource Rent Tax. We are unsupportive of scrapping the linked small business tax concessions.

This saving measure is short-sighted and its impact will act as a financial disincentive for small business.

As indicated in my last Viewpoint, the Queensland Government introduced into Parliament the standalone legislation for the sectors that were regulated under the former Property Agents and Motor Dealer Act 2000 (PAMDA). The legislation

applying to our sector is the Motor Dealers and Chattel Auctioneers Bill and the Agents Financial Administration Bill (the Bill).

The Bill, when it is proclaimed, will bring to an end our long term advocacy for standalone legislation for used car dealers. Under the Queensland parliamentary process, these Bills will be examined by the Legal and Community Safety Parliamentary Committee.

Submissions were sought to assist the Committee with its deliberations.

We responded and will attend the Hearings to present evidence.

In our submission we reiterated previously proposed policy positions that in our opinion should be included in the Bill. It appears we will not be successful in achieving these outcomes but for us, for now, the priority is to achieve the standalone legislation.

The Chairman of the Used Car Division, Michael Kennedy, also presented a submission.

The Department of Transport’s Regulation Office - Program Office consulted with us as a stakeholder on proposed changes to the Transport Operations (Road Use Management) Act 1995. In a nutshell, the purpose of the suggested amendments was to enable drivers so that they would no longer be required to report collisions which only involve property damage.

We made a fulsome response and pointed to policy issues that need to be addressed prior to the amendments proceeding for Departmental approval.

SMALL BUSINESS SUPERANNUATION CLEARING HOUSE

A new Commonwealth measure is the Small Business Superannuation Clearing House. It is a free online service that helps small businesses with 19 or fewer employees meet their superannuation guarantee obligations. It allows employers to pay superannuation contributions in one transaction to a single location to reduce red tape and compliance costs.

In addition it provides a better way to pay superannuation for workers by remitting compulsory superannuation payments directly to the Australian Tax Office (ATO), with the tax office distributing contributions to individual accounts.

The ATO is to launch an App in an effort to further assist small business.

Using mobile devices, small businesses will be able to: • f ind out if their worker is an employee or contractor for tax and super purposes; • search small business assist, the ATO’s online service that provides an easy pathway for small business to find information they need on a range of tax and super topics, with the option to book an after-hours call from an ATO customer service consultant; and • use the payment plan estimator to simulate a payment plan for an ATO debt. Users will also be provided with information on how to enter a payment plan once they have determined the arrangement that would suit their needs.

CHANGES TO THE FAIR WORK ACT

Significant changes have been made to the Fair Work Act effective from 1 January 2014. These include anti-bullying measures, right to entry measures, penalty rates, award flexibility, consultation about changes to rosters or working hours, superannuation provision in enterprise agreements, and apprentice trainees and junior wage rates etc.

If Members need assistance with these or other workplace relations advice, contact our Ted Kowalski.

He is across the changes and is happy to advise.

Ideally, Members would like these changes repealed. Better still would be a review of the Fair Work Act amended accordingly so that it is business friendly.

NEW MOTOR VEHICLE SALES

December 2013 new motor vehicle sales (seasonally adjusted ((SA)) were up by 4.2 per cent to 19,744 units compared with the previous month. In terms of the previous year, new motor vehicle sales were down (as) by - 2.5 per cent. By volume, for the calendar year, Queensland’s new motor vehicle sales fell shy of the 235,025 sales in 2012 by 1,886 units. We may have been able to beat the 2012 sales had it not been for the Fringe Benefit Tax debacle!

According to the Federated Chamber of Automotive Industries’ VFacts, nationally for 2013, government purchases were down a significant 20.2 per cent, or 10,291 vehicles. Business purchases too, were down by a total of 1.1 per cent.

Interestingly, business purchases in the SUV segment increased by 5.9 per cent. Private sales were up a total of 8.1 per cent. This included a 37.2 per cent rise in private purchases of light commercial vehicles.

TYRE PRODUCT STEWARDSHIP PROGRAM

There has been a breakthrough on the management of the 48 million end of life tyres. The Tyre Stewardship Australia (TSA) has been launched and the Tyre Product Stewardship Program established. These are the result of some 20 years of consultations and involvement by tyre retailers nationwide and other parts of the industry.

The creation of the TSA means that the industry can commence examining and implementing strategies to lift the percentage of tyres being recycled. This involves a national, coordinated, focus on researching and creating uses for the end of life tyres. In addition it will assist with the strengthening of existing tyre recycling businesses and potentially creating new ones, enhancing employment opportunities and reducing the environment harm caused by the illegal dumping of waste tyres.

The creation of these new products and technologies originating from an undervalued commodity will contribute to preventing 66 per cent of waste tyres ending up as landfill, or stockpiled or illegally dumped.

The Australian Motor Industry Federation including our Tyre and Undercar Division was instrumental in securing this outcome. It is a good outcome for consumers and industry alike.

AND FINALLY . . .

Like all Queenslanders, I’m looking forward to cooler weather. I trust that when I prepare the next Viewpoint, the State has had steady soaking rain.

In the mean time all the best and take care.

February 2014 Motor Trader | 5

Divisional news NACA

We have come back to a new year with a lot of work around, which is a good position to be in.

A number of new insurer contracts will be coming into play this year.

IAG are currently carrying out their shop inspections as we speak, and they have advised me of their intentions to come in and discuss their progress in the next few weeks.

By the time this goes to print I will have met with Suncorp to discuss their new contracts and their processes around their own repair standards.

RACQ have just released their sublet and allowances guide, so if anybody hasn’t received this please make contact and I will resend.

Mark Brady and myself are heading to Perth mid-Feb to attend the AMBRA meeting where there will quite a lot of discussion around the shop grading program, the code review and eMTA. Keep an eye out for updates on these exciting phases for our industry as they come to hand.

We have seen more IDRs being

lodged. This is an indication that our industry is making the right noises in regard to their business needs, which is good to see, so remember to copy me in on your IDR lodgement so we can keep a record of the numbers, which is needed if we are to see the code mandated in Queensland.

with Ben Chesterfield AED

We are holding our first meeting mid-Feb and I would encourage all ERAQ members to attend if they can. Notes from this meeting will be distributed to all members after the meeting. We have not had very good response to our meetings over the past year or so, so it would be good to see a few new faces in attendance.

ERAA is going to be involved in the engine reconditioners conference to be held on the Gold Coast later this year. It is being run by the NZ ERA and I look forward to a lot of local participation and attendance.

More information will be distributed as it comes to hand.

Welcome back to 2014. I have called on quite a few members from this division already this year and there seems to be a sense of optimism and plenty of work around so far.

I have met with Charlie (our fearless Chairman) already this year and have a few ideas on the go for this division. We have a new member on our committee, Frank Teggart from A1 mobile mechanics. Welcome aboard Frank.

We have finally finished our submissions on Section 133 which will be signed off in the near future. We will distribute this document as soon as it becomes finalised.

There have been a few issues raised across the state in relation to Queensland transport inspectors and the new code of practice for AIS. I have spoken to Queensland transport in relation to this issue and they have assured me that all AIS will be given a copy of the new code with enough notice prior to it coming into effect. If you have any questions around this matter, don’t hesitate to make contact.

The smart-looking S-Cross range is offered in three model line specifications: GL, GLX and Prestige.

The GL Series is front wheel drive; the GLX is available as a two-wheel drive or all-wheel drive. The all-wheel drive system offers four modes of operation - Auto, Sport, Snow and Lock, offering flexibility in different driving environments.

The S-Cross has a five-star ANCAP safety rating thanks to a range of safety

features, including electronic stability control, anti-lock braking system, electronic brake force distribution and brake assist system.

The S-Cross is jam-packed full of technological goodies too. Cruise control, USB sockets, Bluetooth, parking sensors, push button start and stop are just some of the features available across the range.

But the real star of the technological package is the voice-operated multimedia system available on the GLX and Prestige models which allows the driver to tune to a radio station, play a song or make a phone call, among other functions, all by voice control.

Prices for the Suzuki S-Cross range from $22,990 for the GL 2wd Manual, up to $34,990 for the Prestige CVT 4WD model.

ERAQ

News SUZUKI LAUNCHES NEW S-CROSS

S

UZUKI HAS LAUNCHED a new model in the small SUV market with its five-seater sports wagon, the S-Cross.

Built on an entirely new platform, the S-Cross is available in two-wheel and all-wheel drive variants, and the 1.6-litre engine achieves fuel economy of 5.8 litres per 100km, making it one of the most economical vehicles on the market.

"No doubt one of the greatest advantages of the car is the economy," said Adam Le Fevre, General Manager of Suzuki Queensland. "And given the very high petrol prices in Queensland, anyone looking for a unique SUV platform should look at the S-Cross.

The fuel economy is simply outstanding."

6 | Motor Trader February 2014

News

DEALER ASSOCIATION TO REINVIGORATE INDUSTRY T

HE NEWLY FORMED Australian Automotive Dealer Association Limited (AADA, established on January 17, 2014) will roll out a number of initiatives as it fulfils its pledge to protect and represent new car dealers and fight for new policies and improved operating environments for members.

“The importance of Australia’s retail automotive industry to the national economy should not be underestimated,” said AADA Chairman, Ian Field.

With annual new car sales of over 1.1million across 67 automotive brands, statistics from IBIS World show Australia’s retail automotive industry paid $5.6 billion in wages and earned profits of over $2.6 billion.

AADA is being led by a highlyexperienced team, including new CEO Patrick Tessier.

“This Association must bring together Patrick Tessier dealerships from across the country, give them one voice, and address the real issues affecting the industry." said Mr Tessier.

The AADA’s renewed focus on protecting Dealer interests will see the Association working with key industry members along with government decision makers.

Issues that will be addressed include changing the current luxury car tax policy and working with dealerships

affected by the manufacturing withdrawal of Holden and Ford.

As part of its efforts, the AADA will release Automotive Dealer - a print and online magazine highlighting important issues, milestones and opportunities for Dealers across the country.

The AADA is also set to host the AADA National Dealer Convention, bringing world-leading speakers and workshops to over 700 delegates across the country. Details are available at www.aadaconvention.com.au To promote the new AADA, Chairman Ian Field, CEO Patrick Tessier and members of the new leadership team will tour the country holding information sessions. Details of session dates will be available in the coming weeks.

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February 2014 Motor Trader | 7

QA

MTA &

MT: When did RGM Maintenance start doing business??

IT: The business was started in May 2002 in Brisbane. Three friends Russell Newman, Greg Jackson and Mark Berry - saw the opportunity to create RGM to pursue military truck repair and maintenance work.

MT: How has the company grown and expanded since then and what is its core business now?

IT: RGM now has locations in Brisbane, Townsville, Darwin and Adelaide with a field service representative in Katherine.

The company has evolved from purely heavy vehicle maintenance into truck smash repairs, paint and panel work including sandblasting for truck chassis, structural steel and other engineering types. We also work with load-handling equipment such as cranes and forklifts, as well as Safe Load Program (SLP) servicing and repairs for fuel equipment and other projects too.

MT: How has the expansion worked?

IT: The owners saw an opportunity to expand into Townsville in 2005.

About four years ago the opportunity arose to enter the market in Darwin, and two months after opening there it was recognised there was a need for field service type support in Katherine, particularly supporting some of our interstate road transport customers.

About 18 months ago, an opportunity came up in the load-handling business, with cranes and hook lifts and those sorts of products. There was an existing facility in Adelaide and that provided our entry into that market.

Each of our sites is located near a major transport hub. In Brisbane that is Rocklea. In Darwin, we are the anchor tenant in the defence hub outside at Holtze and that will put RGM at the

Ian Tomlinson, Business Development Manager for RGM Maintenance, gives MT the lowdown on a business that has gone from a single workshop in a Brisbane suburb to a company that straddles the country and whose business varies from servicing heavy haulage vehicles for national firms to warzone-bound vehicles for the Australian Armed Forces - with a number of unique projects inbetween. gateway of Darwin for any heavy transport customers travelling to the south-east or west. RGM has also just become the service and spare parts agent for Mercedes Benz Trucks in Darwin. We’re building a new facility out at Holtze and that will give us the opportunity to support Mercedes trucks that are used in the mining industry.

MT: Is there more growth for RGM on the horizon?

IT: There are often requests from customers for RGM to pursue opportunities in NSW, Western Australia and Victoria. Certainly there is opportunity in the mining industry in Queensland, however the cost structures are different and competition for labour is always a problem.

Mechanics, fitters, welders – any of those sort of trades - are highly sought after in the mining industry. The RGM culture is always ensuring you look after your customer and instilling that culture into local workforces. RGM likes to establish new facilities and relocate one or two key staff members from existing sites so that the RGM customer focus is migrated and instilled from the start. In all cases, while we may have a couple of core employees who come out of an existing RGM site, we try and buy what we can locally, to employ our staff locally and we get involved with sponsorships and things like that. Some of our national road transport customers use our Darwin and Townsville facilities as end-to-end maintenance facilities for their fleets. It means our bigger customers deal with one company, the same maintenance philosophy, the same culture at multiple locations.

That’s what gives us the strength and the edge.

MT: RGM Maintenance has been involved in some unusual projects.

Can you explain how they came about?

IT: We bid for services to refurbish medium girder bridges. It’s like a giant meccano set. Each bridge set contained about 600 significant items and it involved sandblasting, treatment of high-hardness aluminium, repainting, stenciling, re-assembly and re-palletising. We were also lucky enough to get a spot on a contract panel let by the Australian War Memorial for the restoration and conservation of two Bofor light anti-aircraft guns.

It was extremely interesting and was a very positive heritage activity for the company to be involved with.

It involved everything from sandblasting, stenciling, spray painting, riveting and even splicing ropes for the braking system on the gun carriage.

We were also involved in restoring a 6-inch German Howitzer that belonged to the Rosewood RSL. Also, at the moment, RGM is doing some work on a set of twin Bofor anti-aircraft guns for the Darwin Military Museum.

MT: Rocklea was caught in the terrible floods of 2011. How did RGM cope?

IT: The Rocklea site did get caught in the flood. We started the clean up as soon as the water had subsided on the Friday and we had friends, family and even some of our suppliers came to see if we needed a hand. In the space of three days the site was cleaned. On the Monday morning our sandblasting and paint and panel business were operating. It was one of those things that we couldn’t sit back and do nothing, we had to just crack on.

MT: RGM has a seemingly unique relationship with the Australian Defence Force. Can you explain that?

IT: There is, to the best of my knowledge, no other company that has a presence like RGM has close to the major military establishments in Qld,

NT and South Australia that provides the range of vehicle and equipment repair and maintenance activities.

RGM is unique in that aspect.

The Department of Defence is a reasonable portion of our vehicle maintenance work but there are also significant prime contractors like Thales Australia, the manufacturers of the Bushmaster Protected Mobility Vehicle. With the Bushmaster, RGM has a national agreement in place that involves everything from general repairs, service and maintenance work to some specific painting and welding activities. RGM also provides trade repair services to the ADF B-Vehicle fleet which is the light, medium and heavy vehicles, airport fire vehicles, refueling tankers, potable water trucks, some airport-type support equipment and almost any other variant of that.

MT: There must be great pride working on military machines like the Bushmaster given its protection role?

IT: For RGM to be regarded by Thales Australia as having the capability to meet their requirements is a very good vote of confidence for staff and management. And it is good to be able to recognize the role RGM has played in supporting Thales and also the troops in the conflicts of the last decade in the Middle East. While the Bushmaster is probably the highest profile vehicle that we’ve worked on, we have also worked on up-armoured bobcats, up-armoured fuel trucks and other vehicles that we know are going into Iraq or Afghanistan. We also did some mobile reverse osmosis water treatment plants some years ago that went into Tsunami-hit Indonesia.

To have the opportunity in assisting in the success of those activities is very rewarding and it something that the owners, management and staff of RGM are very proud of.

February 2014 Motor Trader | 9

Sir Jackie Stewart made his name on the track in motor racing’s most dangerous era. As he watched his friends dying all around him, he began a crusade to improve the safety of the sport. Motor Trader talks to the living legend.

10 | Motor Trader February 2014

T

HREE-TIME FORMULA ONE champion, team manager, businessman, excitable racing broadcaster and commentator. Sir Jackie Stewart is all these things and more. One of the sporting world’s most successful competitors, with 27 Grand Prix wins to his name as well as European and British championship trophies in the sport of shooting, he’s also one of its best loved personalities and an inspiring speaker.

It could all have been different, of course. If he hadn’t missed out on qualification for the 1960 Olympics in Rome by one point, Stewart could have gone on to make his mark with a very different type of weapon, but when in 1965 he followed his father and brother into motorsport, he quickly became one of Formula One’s leading lights.

His grounding in shooting was valuable. “Success is often critical to your sense of self-worth and pride,” he begins.

“Shooting was what enabled me to gain confidence, and that helped me when I started racing. It taught me valuable lessons in mind management. When you miss a clay target, you don’t get to do it over again. You can’t get to 100 no matter how brilliant you are. The best you can do is 99.

In driving you can make an error on one lap and you get a chance to make the time up on other laps.”

But no amount of mind management could soften the blow of friendships being cut tragically short. It was an era of

“IT WAS VERY DIFFICULT TO CONVINCE THE TRACK OWNERS TO SPEND ANY MONEY ON GUARD RAILS OR MEDICAL FACILITIES. THAT WAS THE DARK SIDE OF RACING IN THOSE DAYS.”

uncertainty. Indeed Stewart’s best friend and rival, fellow Scot Jim Clark, died in 1968 at the Hockenheimring in Germany.

“It was one of the worst moments I can remember in racing,” Stewart recalls sombrely. “Death was becoming routine. It made me angry and frustrated and I was very determined to try to make racing safer and get the tracks to take necessary steps to at least try to protect drivers in some way. It was very difficult to convince the track owners to spend any money on guard rails or medical facilities. That was the dark side of racing in those days. The race owners were so stubborn and their attitude was that if you didn’t like it, you could go home.”

Together with the support of fellow drivers, including in particular three-time world champion and legendary Aussie sporting hero Jack Brabham, Stewart and his supporters February 2014 Motor Trader | 11

closed the infamously deadly Nurburgring (where, incidentally, he won four times) in 1970 and began changing the way track safety was considered.

Stewart has a great respect for Brabham, who was honoured this year at a special ceremony during the Australian Grand Prix. He says, “Seeing Jack race was quite incredible. He was such a cool customer and some of the stuff he did was effortless. He had vision like no other and was impossible to second guess because he was two seconds ahead of you in planning moves on the track.

“Sometimes he didn’t have the faster car but his defending, particularly on the straights, was wonderful. And we must remember he did it all himself... the game plan and the car was his creation. It was remarkable.”

Having helped to shape the sport into what it is today, what does Stewart make of today’s top drivers, such as Fernando Alonso and Sebastian Vettel? “Alonso and Vettel are both very fast, but Alonso has better mind management than Vettel,” he says. “Vettel is the most mature 25-year-old driver F1 has ever had. You’re not as good a driver at 21 or 22 as you are at 25. He lives at home with his parents, he hasn’t gone wild in terms of his personal life, and he is very focused on driving. He doesn’t let himself get distracted and his feet are firmly on the ground.

“Vettel is the number one driver on the Red Bull team and even though Webber is a good driver, he’s not on the same level as Vettel. If Hamilton had gone to Red Bull, you would have had the situation of having two top drivers competing against each other, which would have upset the balance you have on the team.”

Sir Jackie Stewart with Jim Clark

12 | Motor Trader February 2014

For a man who has consistently been named as one of the top five drivers of all time, who are Stewart’s own personal favourites? “Jim Clark was the best driver I ever raced against but my hero was Juan Manuel Fangio. For me, Fangio was the most complete driver I ever knew. He retired and he had the dignity and style that was emblematic of the sport. He went on to become president of Mercedes-Benz in Argentina and carried his relationships globally in the most perfect way.”

Like his hero, Stewart survived the perils of the time to become a successful businessman, despite battling the inherent disadvantages of being dyslexic. His business partnership with Ford has now lasted four decades, as have similar incentives with the likes of Rolex and Moet & Chandon.

“I’ve earned so much more money outside of motor racing than inside it!” Stewart laughs. “When you have those long-term relationships, you need to deliver. So working for those companies taught me to under-promise and over-deliver.

That always wins you points.”

And surprisingly, Stewart says his dyslexia turned out to be something of a blessing. “You learn to focus your mind and energy in a very concentrated way because you’re not clever in the ordinary sense. You sadly can’t think in the same terms as clever folk because educationally you’re so far behind – as a dyslexic you’re not able to read and absorb information the way others can. That forces you to think out of the box, to come up with alternative strategies and ideas that wouldn’t necessarily occur to other people.

“That’s been a major force in my life and has pushed me to try to excel and work very hard to be successful.

Would I ever have been a successful driver without such a disadvantage?” he asks. “I don’t think so.”

News

BMW i3 HERALDS NEW ERA FOR ELECTRIC CARS B MW LOOKS SET to revolutionise the Australian car market with its all-electric offerings, the i3 and the i8.

To be launched into the Australian market later this year, the cars are the first products from the company’s new sub-brand, BMW i, and Brisbane BMW played host to one of the i3 models in January as it was taken on a preview tour of the country.

The MTAQ member was the only BMW dealership in Queensland, and one of only four across Australia, to host the i3 and even though it was on static display and not available for a test drive, it was a successful cameo appearance with orders already taken for a car which, at this stage, is being priced at somewhere up to $70,000.

“Every person who has walked into the dealership has come over to look at the car and has reacted very positively,” said Martin Roller, Managing Director of Brisbane BMW. “We have taken four orders in one week. The biggest question we are now being faced with is ‘when can we deliver?’.”

According to Scott Croaker, Products Communications Manager for BMW Group Australia, the BMW i3 has been met with an enthusiastic response from consumers. “There are already 11,000 orders worldwide, which has far outstripped our expectations. It’s a positive message and vindicates the direction that BMW has taken,” he said.

The BMW i3 is the first-ever electric vehicle to be conceived and custombuilt by the new BMW i sub-brand, and utilises cutting edge, lightweight components including extensive use of carbon fibre and aluminium, making the car both light and strong.

BMW says one of the benefits of this purpose-built construction is that the weight savings from materials make up for the extra weight of the battery - even with a battery pack that comes in at a hefty 230kg, the i3

still weighs in at 1195kgs, comparable to similar sized petrol vehicles.

The battery itself can be charged from a standard wall socket or from a specially installed unit, bringing charging time down from 11 hours to six.

Driving the rear wheels of the i3 is an electric motor that generates 125kW and maximum torque of 250Nm which can push the car from 0-100km/h in just 7.2 seconds.

BMW says the i3 has a range of 200kms but that can be boosted by choosing the model with a range extender engine - a 650cc two-cylinder engine used to maintain battery charge.

Aimed at the urban market, that means the BMW i3 has more than enough range for most people’s daily needs.

Sustainability and the environmental impact of production were key considerations in the development of the i3 with hydroelectric and wind power used to provide power during production. Inside, the smart interior

designs use wool, leather, eucalyptus wood and other sustainable natural fibres.

Recognising that consumers are getting more hitech and connected, BMW has also come up with a smartphone app that allows the driver to remotely monitor the i3.

Once linked, the app shows important information about the car, including battery status, range and charging time, allows remote control of certain functions and even has a CO2 calculator to see how much the BMW i3 is reducing a driver’s CO2 footprint.

The BMW i3, and its big brother the i8, look to herald a change in the industry and keep BMW at the cutting edge of automotive innovation.

“Nearly half the world’s population live in cities. In 2030 that will be 60 per cent,” said Mr Croaker. “Stricter CO2 regulations and changing customer expectations mean that to be successful it’s not enough just to be involved in progress, you need to shape it.”

February 2014 Motor Trader | 13

News

RUNNING OUT OF PATIENCE? A WORD OF WARNING Thinking of selling an uncollected car at your business?

STOP! Have you complied with the legislation?

BY BRIAN SMITH, COMMERCIAL DIRECTOR, BENNETT & PHILP LAWYERS

T

HE DISPOSAL OF Uncollected Goods Act 1967 ("the Act") prescribes how and when the disposal of uncollected goods can occur.

Of particular importance to motor traders are the special provisions in the Act applicable to the disposal of uncollected motor vehicles and the focus of this article is on such provisions in the Act. Any motor vehicles that are accepted in the course of a business for inspection, custody, storage, repair or other treatment and intended to be re-delivered may, if uncollected, be sold under the provisions of the Act. Motor vehicles include motorcycles, tractors and any other motorised vehicle powered by gas, steam, oil or electricity.

Readers should note that the term inspection includes accepting a vehicle for the purpose of providing a quotation.

Of particular importance to motor traders are the special provisions in the Act applicable to the disposal of uncollected motor vehicles and the focus of this article is on such 14 | Motor Trader February 2014

provisions in the Act. You can only sell an uncollected motor vehicle if you have satisfied various criteria under the Act: Sign - You have prominently displayed at your premises, at the time of accepting the motor vehicle, a sign indicating that the acceptance of the motor vehicle for inspection, custody, storage, repair or other treatment is subject to the Act and if after 6 months if the motor vehicle being ready for re-delivery is not collected then you have a right of sale under the Act. Notice that the motor vehicle is ready - You have given written notice to the customer that their motor vehicle is ready for re-delivery. This notice must also state that the motor vehicle is liable to be sold under the Act if the customer fails to pay your costs or if the customer pays your costs but fails to take re-delivery of the motor vehicle.

Notice of your intention to sell After 6 months from the date the notice was given that the motor vehicle is ready for re-delivery you have given a

further notice to the customer of your intention to sell the motor vehicle. This notice must contain a full description of the motor vehicle and must be given at least 28 days before the intended date of sale of the motor vehicle.

Advertised your notice of intention to sell - The notice must be published in a local newspaper, a newspaper published in Brisbane and circulating throughout Queensland and in the Queensland Government gazette.

In addition to all of the above requirements, Section 19 of the Act provides that if you intend to sell a motor vehicle you must, before you make an application to Court, give notice to the commissioner of police of your intention to sell a motor vehicle.

The notice to the commissioner of police must include details of the following: • Make of motor vehicle • Model of motor vehicle • Colour of motor vehicle • Registration number • Chassis number (if any)

• • •

Body number (if any) Engine number Details of how the motor vehicle came into your possession.

The commissioner of police will then carry out a search of the police records and provide you with a certificate as to whether or not the motor vehicle is recorded as stolen.

Below is a useful checklist to consider when contemplating any action under the Act: • Make sure you have a sign displayed prominently in the area where a customer hands over possession of the motor vehicle.

• If a customer has not paid or paid and not collected their motor vehicle, have you given them notice in writing (either personally or sent to their last known address) that their motor vehicle is ready for re-delivery? Make sure you keep a copy of the notice for your records.

• Do you know of anyone else having an interest in the motor vehicle?

If so, make sure written notice is also given to them and copies kept for your records.

• Have you complied with time periods stipulated in the Act? • Have you advertised the notice of intention to sell?

• Have you given special notice to the police about the motor vehicle?

• Have you obtained legal advice?

The provisions of the Act are intricate and failure to comply with just one section can affect and delay your subsequent rights to dispose of an uncollected motor vehicle.

At Bennett & Philp Lawyers we advise many businesses on issues relating to uncollected goods, both inrespect of general goods and motor vehicles. We would happily advise you or your business should you have any queries as a result of this article.

NEW PROGRAM TO TACKLE TYRE WASTE Each year, 48 million end-of-life tyres are disposed of in Australia with only 16 per cent of those currently being recycled and 66 per cent ending up as landfill, stockpiled or illegally dumped. This compares with recycling rates of 43 per cent in Europe and 32 per cent in the United States.

Launched in January by the Minister for the Environment, Greg Hunt, on behalf of the tyre industry, Tyre Stewardship Australia (TSA) and the Tyre Product Stewardship Program should end that waste.

The new scheme aims to expand recycling programs and research new methods to reuse discarded tyres using a 25 cents per tyre levy to help fund the program.

The Australian Tyre Industry Council applied for authorisation of the scheme in 2012 with the Australian Competition and Consumer Commission (ACCC) granting authorisation for a period of five years until 3 May 2018.

“The tyre industry has wanted something like this for the past

“CONSUMERS CAN

BE CONFIDENT THAT THE ISSUE OF WASTE TYRES IS BEING ADDRESSED.”

20 years,” said Gerry Morvell, Chairman of Tyre Stewardship Australia, talking to the ABC. “ And now we have designed this scheme that has been endorsed by all of the peak industry bodies in the supply chain.

“The intent is to remove out of the industry those who are doing the wrong thing – the illegal dumpers and the like – and only have those in the system who are legitimate players. The second part of what we are doing is to understand the fundamental economic and research technology problems that are preventing recycling moving from its current low base of 16 per cent.”

A number of leading tyre manufacturers have joined the voluntary scheme, including Toyo, Continental, Pirelli, GoodyearDunlop, Yokohama, Michelin and Yokohama.

“The creation of TSA and the Stewardship Program is the culmination of almost 20 years of hard work and involvement by tyre retailers nationwide as well as other parts of the industry,” said Richard Dudley, CEO of the Australian Motor Industry Federation.

“Consumers can be confident that the issue of waste tyres is being addressed and we as an industry can begin examining and implementing strategies to lift the percentage of tyres being recycled.”

This article provides a general overview of some relevant topics regarding The Disposal of Uncollected Goods Act 1967. Please note this article is not intended to provide nor does it constitute legal advice. You should seek legal advice before acting on or using the content of this article.

Should you require legal advice on matters raised in this article please contact Bennett & Philp Lawyers on 07 3001 2999.

February 2014 Motor Trader | 15

HOLDEN HERO H

OLDEN MAY HAVE decided to stop automotive manufacturing in Australia from 2017 – a painful decision for both the company and this car-loving nation – but, thankfully, one thing it cannot erase is the part it has played in the rich history of the industry in this country.

From the Ute to the Barina, from the Kingswood to the Commodore, Holden has been at the heart of the industry and become an Aussie icon to boot.

And perhaps no car captures the classic nature of the marque more than the Monaro – a car that, since its introduction in 1968, has become as iconic as the company that made it.

Named after the country region of NSW, the Monaro was introduced in 1968 as a two-door pillarless hardtop coupe available in three models: the basic Monaro coupe, Monaro 'GTS' coupe and Monaro 'GTS 327' coupe.

The cars were a runaway success, picking up the Wheels magazine Car of the Year award in its first year as well as stealing Ford’s thunder at the 1968 Bathurst 500.

Little wonder then that the Monaro became a ‘hero’ car that every dad, every young bloke, every kid with an interest in cars, wanted to have.

Mark Howard, the owner of Howard Head Services on the Gold Coast, was one of those kids.

“My Dad had a 327 Bathurst Monaro,” says Mark. “He bought it brand new and when I was a kid I remember sitting in the back seat and driving around in it. I was hooked from there. He ended up selling it after a few years but I’ve never forgotten it and I wanted an HK since then.”

It was a dream Mark realised when he got his hands on his

16 | Motor Trader February 2014

HK Monaro 17 years ago. It had been through a few owners since new and, though it was in reasonably good condition, Mark felt there was some work to be done.

“It was originally sold in Casino and I’m the fourth owner,” says Mark.

“It did have original paint on it but that had started to fade and though it was pretty tidy there was a bit of rust.”

So Mark got to work sorting out these minor problems.

But that was just the start. He has been restoring and tinkering with the Monaro pretty much ever since.

“It’s an ongoing project,” he says with a smile. “There’s always something to do. It’s an ongoing thing. Like a hobby.

“I’ve painted it, redone all the suspension, I’ve had the dash restored, all the bushes, new springs, new shocks, new exhausts and I’ve put a couple of engines in it over the years.”

Mark’s ‘tinkering’ has been worth it. The car looks showroom-new, at least to the untrained eye, and it sounds as good as it looks – the engine rumbles and growls like a thunderstorm.

“It had a 350 in it when I got it but had the original 307 engine with it,” he says. “So I rebuilt the 307 and put that in it for a while. But it didn’t feel powerful enough so I put in a 383. Then I put the 307 back in before building the 383 that’s in it now.”

The engine is, of course, what defines a muscle car,

Make: HOLDEN Model: 1968 HK MONARO Engine: 383 CHEVY Transmission: POWERGLIDE Owned: 17 YEARS Owner: MARK HOWARD

but the power of the Chevy 383 is not to everyone’s taste in the Howard family.

“My wife doesn’t like driving it,” he says. “There’s too much power for her I think. When I take her for a drive in it she leaves finger marks on the dash she’s gripping so hard!”

The Monaro, unsurprisingly, isn’t Mark’s runabout car – he has a much less thirsty motor for everyday duties – and though he takes it out at weekends and for the occasional Monaro Club run, it has seen a workout or two in unexpected areas.

“Friends do ask to use it now and again,” he says.

“I’ve used it to take the bride or the best men to three weddings.

“I took my daughter to her formal a couple of months ago at Versace too.

“Actually, that wasn’t so much fun. It was the night we had a big storm and driving up to the hotel I could see these big black clouds and it started to bucket down with rain.

Thankfully, I managed to pull it undercover and wait until the storm cleared.”

Why the caution?

“I paid about $6500 when I bought it, which was about the average price for one back then,” he says. “I’ve got it insured through Shannon’s now for $60,000, so you can see why the kids won’t be driving it!”

Mark doesn’t feel ready, yet, to take the Monaro to car shows and exhibit his handiwork.

DO YOU HAVE A PRIDE AND JOY IN THE GARAGE THAT YOU WOULD LOVE TO SEE IN THE PAGES OF MOTOR TRADER? Contact Jonathan Nash at jonathann@ mtaq.com.au or 07 3237 8721 and let’s see if we can share your classic with other members.

“I haven’t really got involved in that sort of thing,” he says. “I can see faults in it still. I always think it’s not quite good enough. There’ll probably always be something that I want to do to it.”

That’s dedication.

Holden the car manufacturer may be on its way out, but thanks to people like Mark, it will live on in the cars they lovingly protect.

Long may the tinkering continue.

February 2014 Motor Trader | 17

Do you want to be an employer of choice?

Would you like to attract mature knowledge and skills into your business?

If you answered yes, then the Government funded

Do you want assistance with recruitment and retention practices in your business?

Corporate ChampIons proGram could be perfect for you!

The Australian Government has developed a range of resources and services to help employers to attract and retain mature-aged workers (aged 45 years+) through the Experience+ Corporate Champions Program. That means that the government will support you by providing tailored support and assistance valued up to $20,000.

What will you receive?

•

Support to access Australian Government financial assistance including the Experience+ Jobs Bonus

•

Advice on positive age management, superannuation, occupational health and safety, career planning, training and age discrimination.

Employers participating in the program can receive the following support: •

A professional assessment of workforce strategies, recruitment and retention packages

•

Practical help developing an action plan using the Investing in Experience Tool Kit. This could include updating recruitment processes, rolling out new flexible working arrangements and putting into practice retention and mentoring programs for mature age workers

You don’t need to have a mature workforce to participate. With an aging population and aging workforce it is important to start planning ahead.

The Corporate Champions Program will assist you to make sure you have the best workforce possible.

All at no cost to you!

Interested?

Register your interest by sending an email to: CorporateChampions@franklynscholar.edu.au

www.franklynscholar.edu.au

Ph: 1300 918 872

ESSENTIALS Contents 20 Training matters 22 Members matters 26 Member profiles

BRIDGESTONE SELECT WOOLLOONGABBA

BRYANT ENGINEERING 2008 PTY LTD

ROSENBERG MOTORCYCLES

30 Industrial relations

Ted Kowalski

1984 was a momentous year for Ted. Not only did he start his work with MTAQ, he also married his wife, Gwen, in April of that year.

He and Gwen, who is now a teacher, started Bachelor of Arts courses as mature-age students the same year.

"We took a while to finish our degrees because we did them parttime," he said. "We were working and then our children came along."

"My daughter Louise is a teacher and my son Matthew is an optometrist.

"Matthew’s been married for about three years to another Louise and she is training to be an optometrist too - that should be good for mates' rates!

Ted has taken a great deal of satisfaction of working for MTAQ and has fond memories of the people he has met and worked with over the years.

"The majority of our members are small businesses," he said. "They are down to earth and I can relate to that.

It does you good to help that level of business person. Some do struggle to know what the rules are and there is a great deal of satisfaction to be had to help in that regard."

"I’ve met some interesting characters over the years. I often threaten that I’ll write a book one day about some of the characters and situations I have lived through - it would be quite a colourful history."

February 2014 Motor Trader | 19

E S S E N T I A L S

MEMBERS

IME FLIES, OR at least that's how the saying goes. And it certainly has for Ted Kowalski who has just notched up 30 years as Industrial Relations Manager for MTAQ. In his role, Ted assists members with questions and queries that cover the range of employment-related issues.

"We are an employer organisation," said Ted. "So businesses join us to, amongst other things, obtain employment-type information on questions such as ‘What are the wages I need to pay somebody’, ‘This person is going on annual leave, what are they entitled to?’, ‘I’ve just been served with an unfair dismissal claim, can you represent us?’, ‘I’ve just been served with an discrimination claim, what do I do?’ - members seek our advice on anything employment related."

Ted has helped many members over the years but it might come as a surprise to discover that, were it not for wise decision-making by his parents, employers in Canada would be reaping the benefits of his wisdom.

"I was born in Germany, at the Wildflecken displaced persons camp where mum and dad were placed after WWII after fleeing their home in Poland," said Ted. "They had the opportunity to come to Australia but Canada was their alternative choice.

"Fortunately, they chose Australia.

I had my first birthday here and regard myself as an Aussie."

"We were at an army camp in Enoggera, near Brisbane, for a while before they were able to find a home - a Housing Commission home which they lived in for the next 60 years."

Ted worked at the Commonwealth Bank for a numbers of years and took up a position with the Federated Clerks Union before finding his way to MTAQ in 1984.

"Industrial relations has been my life for the best part of 40 years," he said.

"I guess a love of cars was the main thing that attracted me to the position at MTAQ. Guys like motor cars, and the opportunity to work in the motor industry was an attraction that made me seek out the position."

M E M B E R S

MILESTONE FOR TED AND MTAQ T

E S S E N T I A L S M E M B E R S

Training matters

AWARD A SURE SIGN OF A BRIGHT FUTURE H ARD WORK, TALENT and the right attitude can get an apprentice’s career off to a flying start.

And Justin Ware, a 19-year-old automotive electrical apprentice at Brisbane City Council’s Eagle Farm bus depot, has been able to accomplish just that.

Justin capped off his first year of training by winning the Council’s First Year Apprentice of the Year Award.

He picked up the award, and a $250 voucher, from Brisbane Mayor Graham Quirk, at a ceremony at the City Hall in November.

“When they called my name I was pretty stoked,” said Justin. “My trainer Paul and my boss were standing in front of me, and they were cheering!

“My parents were over the moon too. I’m the first in the family to do an apprenticeship - my sister went to university and my brother went into the army, so for us all to be successful has made them pretty proud.

“I was a bit nervous going up to collect the award though, especially

in front of other apprentices who were just as worthy.”

The award is a fantastic achievement for a young man who, just a couple of years ago, knew he wanted to work with cars but wasn’t sure in what capacity.

“I was still at school and went looking online for an automotive apprenticeship job - something in the spray painting or panel beating line,” he said. “And I noticed there were a number of jobs available on the electrical side of the trade. I thought I’d look into that. I showed my dad and he said I should have a go and it went from there.”

Paul Tugwell, Justin’s trainer at MTA Institute of Technology (MIT), is full of praise for his young student.

“He’s really motivated,” he said.

“I’ve been training him since he began his apprenticeship and he really has the ability to go to a higher level.

“I’m passionate about the training and I want it to be a very high standard so this is a big achievement. The kids love the training when they come to

MIT trainer Paul Tugwell with Justin Ware

20 | Motor Trader February 2014

MIT and we really hammer home the skills factor.”

And there’s plenty of skill required in the automotive electrical trade.

“It has been pretty hard,” said Justin. “The formulas have come fairly easily for me because I was always good at Math, but I have struggled with the English side of things. I’ve had to focus hard.

“I do my training through MIT and I’ve been working with Paul since day one and he’s great.

"I told him from the start that I hadn’t worked much with this side of things and he’s worked really well with me.”

“And it’s great to come down here to MIT and see the other apprentices too. We get to hear about problems and issues that others have encountered and it’s always good to talk to people your own age doing the same job as you.”

“Justin is an excellent apprentice and he’s an excellent person actually,” said Colin Gibson, Garage Manager at the Eagle Farm Depot and Justin’s boss. “Everybody here at Eagle Farm is proud of him. He’s streets ahead of most people when it comes to anything he applies himself to, in particular auto-electrical work.

“He’s one that I would encourage to continue on after his apprenticeship and go into electrical engineering or something like that. He’s certainly got the capacity and the capability to do it.”

With one award now under his belt, Justin is looking ahead to another successful year, and a satisfying career - a career he acknowledges may have received a lift with his winning the award.

“The overall Apprentice of the Year winner received $500 and an iPad,” he said. “That’s my next goal!

“I don’t know that I’ll have a job when I finish my apprenticeship but even if I don’t it is great to have this.

I wouldn’t mind staying at the Council though. It’s a pretty good place.”

M E M B E R S

LUKE’S LONG BATTLE TO RESTART CAREER “ T HERE ARE INSPIRING stories, and then there are REALLY inspiring stories.

This is one of them.

It’s Luke Roxburgh’s story - a 26-year-old first year automotive mechanic apprentice from Brisbane.

Luke was a first year automotive apprentice 10 years ago too, but his career was cut short when he was hit by a train - an accident which nearly took his life and which left him with terrible injuries to his right arm and legs.

“The train hit me side on,” said Luke. “I landed on the track and the train ran over my legs. It dragged me for 100m and stopped on top of me.

“I was trapped for about an hourand-a-half and emergency services were thinking about removing my legs.

Fortunately they didn’t, they were able to jack the train up to get me out.

“I was in a coma for a month and had skin, muscle and bone grafts.

Thanks to very good doctors I was able to keep my arm and my legs.”

After suffering such devastating injuries, then spending 8 months in hospital, another year wheelchair-bound, and teaching himself to become lefthanded, a return to the workforce was never going to be an easy task.

Luke tried a few different jobs in the intervening years but it took nearly a decade for him to find his way back into an automotive workshop.

Last year, with the help of a

I CAME IN AND DID A COUPLE OF WEEKS WITH THEM AND THEY OFFERED ME AN APPRENTICESHIP. I AM SO GRATEFUL THAT THEY OFFERED ME THE CHANCE.”

disability support group, Luke was offered some work experience with Steve and Michael Georgas, owners of Absolute Car Care in Brisbane.

It proved to be a rewarding few days.

“I came in and did a couple of weeks with them and they offered me an apprenticeship. I am so grateful that they offered me the chance.”

“We got a call to see if we could give Luke some work experience,” said Michael. “We were impressed with his attitude and the guts he was showing to cope with his disability and we offered him a job.

“The main criteria when we bring someone on as a trainee is their attitude,” he added. “In this day and age it is hard to find people with the determination and the right attitude.

To me that is paramount."

Luke’s injuries prevent him from working full-time and his

apprenticeship will be taken part-time too, potentially extending out to 2021.

“He’s going well,” said James Dixon, Luke’s trainer from the MTA Institute of Technology. “He does get quite tired and it will be tough for him, but he is a great kid and very determined.

“He had his accident some years ago and a lot of things have changed since he was first doing an apprenticeship. What we have decided to do is to give him the workbooks, see how he goes and, if we can, we'll accelerate him through quicker on sections he completed in his previous apprenticeship.”

Luke will get every opportunity to work and learn on the job - Absolute Car Care is a busy firm.

“We’ve been in business for 13 years and we have a loyal customer base of 2900 regulars,” said Michael.

“To get through them in a year is hard.

There’s never a day when the guys aren’t doing something."

Luke is philosophical about what he can do and what his expectations should be. “I haven’t thought any further than finishing my apprenticeship. I just want to finish what I set out to do when I was 17,” he said.

“I’ve always loved cars. That was all I could ever see myself doing. At the time of the accident I was working on my first car - a Nissan Bluebird TRX Series 3. I still have it. It’s sitting in the shed. I hope to finish it one day.”

We have no doubt he will.

February 2014 Motor Trader | 21

E S S E N T I A L S

MIT trainer James Dixon with Luke Roxburgh and Michael Georgas

E S S E N T I A L S M E M B E R S

Member matters

Artist impression of the new Toyota facility at Gympie

FAMILY THE FOUNDATION FO “ I F YOU’RE FROM the southern Queensland town of Gympie, or the surrounding Mary Valley area, then there is probably one name you associate with the automobile industry more than most.

That name is Madill.

And it’s no surprise, because from humble beginnings when brothers Tom and Alex started the firm in 1935, the Madill family business has expanded to include dealerships for Toyota, Holden, Mazda, Suzuki, Great Wall and Isuzu Trucks, as well as a number of other businesses, and now boasts a workforce of more than 200.

And, while now overseen by Tom’s sons, Garth and John Madill, the business is continuing to expand - its latest project being a new and innovative 8000sqm Toyota sales and service facility in Gympie.

“The facility will have a 16-bay service centre including two ‘quick service’ bays,” said John. “They’re bigger than the other bays, allowing more technicians to work on the vehicle meaning a quicker service time. The idea is to give a ‘service-while-youwait’ experience for our customers.

“We’ll also have a new delivery showroom which will be an exciting experience for customers receiving their new cars. The whole building is 22 | Motor Trader February 2014

THE WHOLE BUILDING IS DESIGNED AROUND DELIVERING OPTIMUM SERVICE TO CUSTOMERS.”

designed around delivering optimum service to customers.”

The facility is a big investment – an investment only a company confident in the future would make - and it’s another move by a family firm which, after decades of endeavour, has built one of the area’s biggest businesses.

The Madill family’s business interests began in Gympie when Tom and Alex Madill took over The Carlton Motor Company in 1935. But the young men were not to have an easy time of it - world events would intervene to hamstring the fledgling business.

“They shut down for the war,” said John. “And while they were away someone moved into town and actually took the business franchise from them there weren’t the franchise agreements like there are today! When they returned, they started Madills Service Station selling used cars.

“Dad bought out Alex in 1945 and began to sell cars from the Rootes

Group, the British company that made Hillmans and Humbers, and then moved on to Vauxhall cars and Bedford Trucks for GM.” In those days, getting hold of stock was not an easy task and hard work and a certain laid-back attitude was the order of the day. The brothers remember their father’s dealings with a smile.

“He used to do a lot of miles,” said John. “After the war he would take five mates down to Melbourne to pick up cars and drive them back. They used to take a drum of oil and service them at the border before bringing them back.”

“Dad used to sell a lot of the trucks himself and he used to close a lot of deals in the pub. 5 o’clock, every day, he’d be over at the Royal having a beer and doing business.”

Expansion would continue through the purchase of a Holden dealership in Gympie in 1961 and Tom would eventually become the sole Holden dealer in town. And it was a few years later that the brothers joined their father in the business, although they weren’t certain that the car business was where their futures lay at the time.

“I left school in 1964,” said Garth.

“I originally wanted to study engineering and to travel but I think Dad had everything mapped out.

I worked for him for 12 months, then

OR MADILL SUCCESS studied in England with Vauxhall before going to work for Chevrolet in California for a while before coming home.”

John, too, had eyes on a different career.

“I was studying architecture,” he said. “But Dad became ill so I came back to work for six months in April 1975 and I’ve been here ever since.

I’m much happier here though. I’m more of a people person.”

Steady growth in Gympie, which saw the business take on various franchises including Land Rover and Mercedes Benz, would lead to expansion to the Noosa area north of Brisbane in the early ‘80s and a massive investment in land and facilities that today comprise Holden, Great Wall and Toyota dealerships.

“We started off with a used car yard in 1982,” said Garth. “Then we bought the Holden dealership in 1985 and got the Toyota franchise in 1996.”

“Toyota said they would love to see a facility here,” added John. “So we bought 13 acres of land in 1997 and built a facility which originally housed Holden and Toyota. The growth of the town meant things just kept getting better and we ended up separating the franchises and kept growing.”

It’s no surprise to discover that a

family with such a past has deep roots in the community, and those roots reach out in the guise of sponsorship and other programs - the business sponsors the Road Craft Driver education program, to which they supply four Toyotas for use in student defensive driver training, as well as the Sunshine Beach Surf Club and a number of other programs and clubs.

And it seems likely the roots will only get deeper as a third generation of the family becomes involved in the business. Garth’s son, John Scott, is Dealer Principal for Holden, while John’s son Adam works in facilities and logistics and oversees the company’s marketing and purchasing.

The family business has come a long way since the early days and the future looks bright - the new, hi-tech, Toyota facility at Gympie being just another step in a long and steady development. And, if circumstances allow, that development will continue for years to come.

“It’s about opportunities,” said John.

“We concentrate on making our current businesses better for our customers and we are always working on that and our people skills to make a better customer experience.

“But if opportunities come up, we’re there.”

Australia's best-selling mid-size car 20 years running - Toyota Camry (Atara SX shown)

February 2014 Motor Trader | 23

E S S E N T I A L S

John and Garth Madill

TOYOTA'S COROLLA IS Australia's best-selling vehicle, topping the sales chart in 2013 as it helped Toyota extend its overall market leadership to an 11th consecutive year.

It was the first time Toyota has produced the country's top-selling car with local customers buying 43,498 Corolla hatches and sedans.

The Camry, built in Australia since 1987, confirmed its status among local motorists by recording a 20th year in a row as the nation's best-selling mid-size car.

The Corolla and Camry, along with the HiLux, which retained its mantle as the country's workhorse of choice, enabled Toyota dealers to sell a market-leading 214,630 vehicles for the year - more than 102,000 ahead of the nearest rival.

Toyota's performance in 2013 led the entire automotive industry to achieve record sales of 1.136 million - the fourth year running Australians have bought more than one million new motor vehicles in a calendar year.

Toyota Australia's executive director sales and marketing Tony Cramb said Toyota was proud of its sales achievements, which he attributed to the loyalty of the buying public, a broad range of value-for-money vehicles and the support of employees, suppliers and dealers.

HiLux, in 4x2 and 4x4 variants, was Australia's best-selling lightcommercial and four-wheel drive vehicle as Toyota notched up its 35th year running as the market leader in commercial-vehicle sales.

Mr Cramb said Toyota expected market conditions in 2014 to produce strong sales for the company and the industry. "Toyota is targeting in excess of 200,000 sales for the 10th time and we expect another solid result for the industry with more than one million sales for the seventh time," he said.

M E M B E R S

TOYOTA CLAIMS SALES VICTORY

E S S E N T I A L S M E M B E R S

Members matters

MCCARTHY’S GOLDEN ACHIEVEMENT P ASSION FOR YOUR work.

That’s something we’d all like to have. And it’s something that comes through loud and clear when talking to Craig and Andrea McCarthy from McCarthy Panel Works in Mackay, North Queensland.

Craig has been running the business for 30 years and, along with Andrea and their 12 loyal staff, has a passion for keeping people safe.

“Consumers probably don’t realise what can happen when a car has been in an accident,” said Craig. “The ANCAP safety rating is important to them when they buy a car, but once that car has had an accident it needs to be repaired properly for that rating to be the same.

That’s what we’re about, making sure the customer has a car that is as safe as when it rolled out of the factory.”

This view is especially relevant today as new hi-tech cars, using the latest materials and electronics, come onto the market. Ensuring your business is prepared to deal with emerging technologies is a key to success.

The McCarthy’s passion has paid off for, after many months of hard graft, McCarthy Panel Works recently achieved Gold Class Professional

Andrea and Craig McCarthy

24 | Motor Trader February 2014

status from I-CAR Australia, the international training organisation.

Gold Class Professional status is the highest recognition of training available to a business in the collision repair industry and McCarthy Panel Works are the first business in Queensland to achieve the standard.

“From a business perspective, we’ve been working towards this for about five years,” said Andrea. “I-CAR has been in the country for about three years, but we knew they were coming and we wanted to make sure we were on board, so we were working towards it even before they were here.”

“McCARTHY’S STAFF HAS UNDERTAKEN A SERIES OF ROLE SPECIFIC I-CAR COURSES AS WELL AS THE STEEL GMA (MIG) WELDING QUALIFICATION TEST PROGRAM.”

Gold Status is certainly not an easy goal to reach, requiring time and a commitment to ongoing training that means staff must achieve a certain level – called Platinum Individual – before the business itself can go on to achieve Gold Class status. And it was a significant investment for McCarthy Panel Works.

“We paid a trainer to come to the workshop to spend time with us,” said Andrea. “And we paid for the training and paid our staff to do the training too. That’s how important it is to us.

“It was a real team effort,” adds Craig. “You get a point for every course you do, and each individual has to reach 10 points. Then there’s an exam at the end of every course and you must reach 50 per cent to pass to become a Platinum Individual. Only then could we reach Gold Status.”

As I-CAR Australia CEO Richard Pratt said, “The Gold Class status is the highest level of accreditation within the I-CAR Professional Development program. It recognises a significant commitment to on-going training and education within the business.

McCarthy’s staff has undertaken a series of role specific I-CAR courses as well as the Steel GMA (MIG) Welding Qualification Test program.”

The McCarthy’s acknowledge that achievements such as reaching Gold Status can have a beneficial effect on an industry that is sometimes looked upon with a wary eye by the public.

“There are some very professional people in the industry and these achievements, and steps like that which the MTAQ are taking with their ‘shop grading’ initiative, are very important,” said Andrea. “We think it’s important for more people to jump on board and it’s equally important to communicate to the customer what it means to have I-CAR accreditation. The consumer needs to understand the difference between fixing a car and fixing it right.”

Mark and Sharon Dodge at Service Reception with service adviser David Dunbar

“IN DEALING WITH THE RACQ AND MEMBERS, WE REALISED NO ONE HAD A RETAIL OUTLET FOR RACQ BATTERY PRODUCTS.” mechanical, auto electrical and other repair work can all be done on site.

Opened in 1989 by Mark and wife Sharon, Mark Dodge Auto became a RACQ Approved Repairer 15 years ago and secured Service Provider status two years ago. And during their long and fruitful relationship with RACQ, the husband and wife team saw an opportunity to provide customers with an even more comprehensive service.

“In dealing with the RACQ and members, we realised no one had a

LORENZO TAKES FLIGHT

retail outlet for RACQ battery products.

Because of the volume of batteries we were selling through our patrols, we believed there was a much bigger market out there.

“Sharon came up with the concept and we developed it over a 12 month period and then got together with RACQ and a company called Club Assist, the distributors of the batteries.

We put together a business plan and came up with what we now have.”

Mark Dodge Auto runs seven RACQ patrols and four tow trucks and the team of 28 staff service a large area in and around Cairns.

“We became an RACQ Approved Repairer and then we secured the Service Provider contract so we look after all the members in the Cairns region. With the facilities we have and with the backing of the RACQ we give them the very best service.”

HERE’S SOMETHING YOU don’t see everyday.

Taken by the MTAQ’s own Mal Beattie, this photo shows MotoGP rider Jorge Lorenzo in full flight rounding a corner during qualifying for last year’s Australian GP at Phillip Island.

While that might not seem so unusual, what is odd is the bundle of feathers jammed into the front of Lorenzo’s bike.

The culprit? A seagull that had chosen a most unfortunate time to use the track as a place to rest.

Mal, a mentor under the

MAAP program at MTAQ and, as can be seen, a pretty decent photographer, had chosen his spot well to get the shot.

“Going to the MotoGP has been an annual treat to myself,” he said.

“I picked a slowish corner to capture the riders as they’re leaning over and I got this. Lorenzo ended up doing three laps with the seagull trapped in the front of his bike.”

Though things did not turn out well for the seagull, Lorenzo would go on to win the GP. February 2014 Motor Trader | 25

E S S E N T I A L S

N A FIRST for Queensland, RACQ members and customers of Mark Dodge Auto in Cairns now have access to more services thanks to a new venture - an RACQ Motoring store.

The RACQ contracted service provider, approved repairer and MTAQ member now offers additional services having created a ‘one-stop’ shop where customers can purchase batteries and have windscreen chips repaired as well as bringing RACQ membership under one roof. Non-members can also signup for Club membership at the store.

“We’ve created a standalone agency attached to our mechanical business,” said Mark. “We have a retail ‘store front’ in which you can buy RACQ products and we also we have a warehouse right next to it where we stock all the batteries RACQ sell.”

“Customers can come in and get their battery tested, charged or replaced.

Should they have an issue with their battery while it’s under warranty then we can replace it on site there and then.

It’s a first for the RACQ. “We do represent the RACQ through the agency and provide membership renewal, maps, brochures and so on.

Effectively, if you were to walk down the road now and see our building you would think that we are the RACQ.” And with the workshop next-door,

M E M B E R S

CAIRNS THE SITE FOR FIRST RACQ MOTORING STORE I

E S S E N T I A L S M E M B E R S

Member profiles

Bridgestone Select Woolloongabba

Bryant Engineering 2008 Pty Ltd

How did you hear about the Motor Trades Association of Queensland? (MTAQ) Physical location at West End.

Location: 110 Mica Street Carole Park

How has being an MTAQ member benefited your business?

Access to skilled labour relations people.

Type of business: Diesel engine machine shop Number of employees: 14 Trading since: 1929 MTAQ member since: A long time

What has been your proudest business achievement to date?

Starting again from scratch at the height of the GFC in 2008 and surviving.

What is the best thing about working in your industry?

Pride in your work and receiving compliments from customers.

What is the best piece of business advice you have ever given or been given? a) Be nice to people on your way up, because you will meet the same people on yor way down. b) It is often necessary to take one step back to get two steps forward.

What would you say to someone thinking about joining MTAQ? Money well spent.

Rosenberg Motorcycles

26 | Motor Trader February 2014

Type of business: Tyre and mechanical Number of employees: 5 Trading since: 2010 MTAQ member since: 2012

How has being an MTAQ member benefited your business?

MTAQ is a trusted name in the Qld both for industry insiders and the public. It brings added credibility and trust to a small business.

What has been your proudest business achievement to date?

We are the current national franchise of the year, and we achieved this within a short period of time in business.

What is the best thing about working in your industry?

No two days are exactly the same.

What is the best piece of business advice you have ever given or been given?

If someone tells you “you can’t”, they either never have or never will.

What would you say to someone thinking about joining MTAQ? It has been a benefit to our business.

Bryant Engineering 2008 Pty Ltd

Rosenberg Motorcycles Location: 123 William Sreet Rockhampton Type of business: Motorcycle dealership Number of employees: 8 Trading since: 1988 MTAQ member since: 1988

How did you hear about the Motor Trades Association of Queensland? (MTAQ) Phil Beaumont was MTAQ President in 1988 and he advised me to join so I did.

How has being an MTAQ member benefited your business?

Having that trade advice at the end of the phone anytime, any day.

What has been your proudest business achievement to date?

Being in business for 25 years and now expanding to multi franchise (Kawasaki, Suzuki, Kymco). Moving to our new location where I did my time as a motorcycle mechanic back in 1978.

What is the best thing about working in your industry?

Meeting people and building up my customer relationship and the ever changing technology.

What is the best piece of business advice you have ever given or been given?

Advice I have given: Work hard and be honest.

Advice I have received: You never make money until the paperwork is finished.

What would you say to someone thinking about joining MTAQ? Do it. You won’t regret it.

February 2014 Motor Trader | 27

E S S E N T I A L S

Location: 200 Logan Road Woolloongabba

How did you hear about the Motor Trades Association of Queensland? (MTAQ) Other associates in the automotive industry.

M E M B E R S

Bridgestone Select Woolloongabba

E S S E N T I A L S M E M B E R S

Solar revolution

MTAQ GETS A BOOST FROM SOLAR POWER

T

HE MTAQ HAS joined the solar power revolution, with the Association’s headquarters at the Sir Jack Brabham Centre of Excellence now crowned by an array of solar panels.

Installed in mid-December 2013, the 30kw system has been generating, on average, 148kw per day in its first month of operation, about one third of the building’s daily energy requirement.

To put that into perspective, the average family home uses about 21kw a day.

“It has, and will, put a big hole in our energy bill,” said Kathy Winkcup, MTAQ Business Manager. “We have no say over the increases in energy price, but with this solar system we do have some control as we are producing part of our energy. It’s a system that should pay for itself in five to six years.”

The solar system was procured through, and installed by Queensland company, Australian All Energy Solutions (AAES).

Founded by Laurie Bradbrook and Paul Reynolds, AAES has installed systems across the state, providing solutions to farming customers as well as commercial and industrial projects, including a notable project in which solar panels were combined with fabric and used as shade sails over a shopping centre car park.

“The customer wanted to see whether fabric and solar could be integrated,” said Laurie. “Large shopping centre car parks could become solar fields. The system is 28 | Motor Trader February 2014

“WE HAVE NO SAY OVER THE INCREASES IN ENERGY PRICE, BUT WITH THIS SOLAR SYSTEM WE DO HAVE SOME CONTROL AS WE ARE PRODUCING PART OF OUR ENERGY.” very flexible and could be used even to run charging stations for hybrid and electric vehicles.”

AAES takes a broader view of energy solutions, complementing the solar panel business with other energy saving plans.

“Over the past 12 months we’ve identified an area for businesses where peak demand falls outside of solar generation hours,” said Paul. “We’re looking at power optimisation to be able to help those businesses. That goes hand-in-hand with solar. It’s not just a matter of saying ‘put solar panels on every building’, it’s a matter of identifying what’s the best course of action. And as we are ‘All Energy Solutions’ we look at all facets of that.

“We do an energy audit, look at the power bill - we look at everything, analyse it and determine how best we can help. Whether it be solar, voltage optimisation or even the use of lighting and heating in the business - depending

on what the customer wants to achieve, we can put a plan together.’

And this approach should be an attractive one to automotive industry businesses.

“Those businesses would get a lift from these systems,” said Paul. “From spray painting units in workshops to new car dealerships which use lighting 24 hours a day, seven days a week, the amount of power it takes to run equipment and systems is significant.

We have solutions that can really help.”

AAES has also teamed up with finance companies to provide plans that let customers install a range of energy saving solutions without a large upfront payment and which have a number of benefits, including no deposit and flexible terms up to seven years.

Once the system has been installed, AAES performs regular checks to make sure everything is working well.

“One of our strengths is we go back and monitor,” said Paul. “People often don’t understand energy, so it pays to go back and talk to them and check the system with them. That way they learn about the system too.”

It’s an area of their business that MTAQ appreciates.

“One of the reasons we chose AAES was their follow-up service,” said Kathy Winkcup. “They have returned to make sure the system is working properly. Their customer service is exceptional. They truly are passionate about their product.”

Power your BusiNess wiTh solar.

CommerCial iNdusTrial agriBusiNess

PV Solutions Solar Hot Water Solar Air Conditioning LED Lighting Power Optimisation

28.5% SAViNG* The Time is Now for BusiNesses To save.

WiThouT SolAr

WiTh SolAr

Is the cost of energy eating into your bottom line?

Have you considered offsetting your energy cost with a solar solution?

Did you know that you can finance a solar system?

Did you know that in many cases, solar systems can become cash flow positive in the first year?

With the energy demands on the automotive industry, we are finding that solar systems have a profound impact on reducing grid energy dependency.

who is ausTraliaN all eNergy soluTioNs?

$17,892 pa

$12,800 pa

Current electricity cost (year)

Savings – $5,089 Finance Repayments (year)

*The above figures are based on a 30kW solar system, financed over 5 years for a SAC Large User tariff classification.

AAES is one of Queenslands leading solar brokers and experts in solar solutions.

We cater directly to the commercial and industrial community, to team up with clients to reduce ongoing and spiralling energy costs.

With the rising cost of electricity and ever increasing financial burden on small businesses, solar is now a very attractive alternative for reducing your grid dependency on electricity and taking control of spiralling energy costs.

Proud Supplier to

To find out how you can offset your energy costs with solar, call us today on 1300 137 227.

Australian All Energy Solutions PO Box 6109 Upper Mount Gravatt, QLD 4122 1300 137 227 www.aaes.com.au

DMS 1401080

Depending on the tariff you are paying, solar can have a significant impact on your bottom line.

E S S E N T I A L S M E M B E R S

Industrial relations

MICHELLE CHADBURN INDUSTRIAL RELATIONS OFFICER

ADDITIONAL PUBLIC HOLIDAY (FOR BRISBANE ONLY) FOR G20 SUMMIT

The State government has gazetted an additional Public Holiday for Friday 14th November, 2014 - but the holiday will only apply to the “Brisbane Area”.

The “Brisbane Area” effectively covers any business which pays rates to the Brisbane City Council. Security will be very tight, and movement in and around the Brisbane CBD will be restricted for the duration of the Summit. Newspapers will carry detailed information about road closures and other restrictions closer to the date.

WHAT IS THE G20?

The Australian Government website provides the following information;The Group of Twenty (G20) is a group of twenty major advanced and emerging economies. The group started in 1999 as a meeting of finance ministers and central bank governors in the aftermath of the Asian financial

crisis. In 2008, the first G20 leaders summit was held to deal with the global financial crisis. G20 leaders have met seven times since 2008, and there is now a leaders summit each year.

The G20 includes 19 countries and the European Union. The G20 works closely with international organisations, including the International Monetary Fund, the World Bank, the OECD and the United Nations, on a wide range of global economic issues. These organisations are invited to attend key G20 meetings.

Additionally, five guest countries are invited each year.

The summit will be held from Saturday 15 to Sunday 16 November 2014 in Brisbane. It is expected that a number of supporting meetings, including meetings of officials, will also be held in Brisbane from Wednesday 12 November to Friday 14th November, 2014.

WORKPLACE BULLYING – NEW LAWS

From 1st January 2014, Fair Work Commission (FWC) is able to receive claims for workplace bullying.

Under the new jurisdiction within the FWC, bullying is defined as “repeated, unreasonable behaviour that creates a risk to health and safety.” A single incident does not constitute bullying nor does reasonable management action, provided managers carry out performance management and disciplinary procedures in a reasonable manner.

Safe Work Australia have released a publication “Guide for preventing and responding to workplace bullying,” which addresses the issue of workplace bullying. The guide lists examples

of what may constitute workplace bullying: • Abusive, insulting or offensive language or comments • Unjustified criticism or complaints • Deliberating excluding someone from workplace activities • Withholding information that is vital for effective work performance • Setting unreasonable timelines or constantly changing deadlines • Setting tasks that are outside of a person’s skill level • Spreading misinformation or malicious rumours This list is not exhaustive and other examples of bullying can be found.

Bullying obviously has a detrimental effect on staff and may cause the loss of trained and talented staff, loss of profits, reduced morale and productivity, unsafe working environment and a risk of legal costs if a complaint is lodged.

If an employee lodges a complaint with FWC all complaints will be heard within 14 days. The Commission will be able to make any (non-monetary) order it deems necessary to address any proven case of bullying. Importantly therefore, FWC is not able to award any form of compensation.

Therefore it’s important that you have anti-workplace bullying policies in place and you investigate any complaints of bullying promptly and efficiently. It’s best to have a written policy in relation to workplace bullying which spells out the procedure for complaints and investigations. Once in place, ensure the procedure is followed should a complaint be received.

A model policy, covering bullying, sexual harassment and discrimination is available through the Industrial Relations section of our website.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Division

All Auto Recycling

Sean Rose

99 South Pine Road, BRENDALE Q 4500

allauto@optusnet.com.au

APRD

Rolin Mechanical

Robert Clacher

1/3 Granard Road ROCKLEA Q 4106

info@rolinmechanical.com.au

AED

Tom Leyden Tyres & Mechanical

Sharon Medlin

11 O’Shanesy Street GRACEMERE Q 4702

n/a

TUDQ

30 | Motor Trader February 2014

Investment matters

MARKET WRAP

E

QUITIES EDGED 0.79% higher in December ending a positive year where the ASX200 Accumulation Index rose 20.20%.

This was a good outcome, as during the month the US Federal Reserve decided to reduce the pace of its quantitative easing. However the well-signalled decision coupled with positive data and assurances saw markets respond positively to the withdrawal of liquidity.

Domestically the RBA left official cash rates on hold at 2.5% with growth remaining a little below trend and noting the A$ is still uncomfortably high. This was reinforced later in the month by the release of the Coalitions Mid-Year Economic and Fiscal Outlook, which unsurprisingly revealed weaker growth and higher deficits.

MARKET REVIEW Due to the soft state of economies globally, 2013 proved to be a year of leadership change/action both domestically and abroad. Both Japan and China ushered in pro-growth governments’ intent on structural economic reforms, while in Australia the Liberal National Party took over leadership promising more business friendly policies. In America Barack Obama was re-elected signalling the continuation of quantitative easing, all in all encouraging investors that governments were intent on returning to normalised growth with their stimulatory policies.

Due to these policies that suppressed real rates to record lows, a dominant theme throughout the year that is still continuing was the hunt for yield.

A rotation out of bonds into equities

occurred, in particular high yielding stocks in defensive markets early in the year. As the year progressed and confidence and tail risks improved, this money found its way into more cyclical stocks expecting a recovery however to date earnings have been slow to flow through.

MARKET OUTLOOK

Over the past year we have seen solid returns and from a price to earnings (PE) perspective experienced a strong increase. The market is now trading at a level similar to the earlier part of the decade and in particular the Australian market ex resources has an expected PE ratio that has expanded ~19% over the past year.

We doubt there is much more PE expansion possible left in the market.

Rather, at this point in the cycle, we continue to look for returns to be driven by growth in earnings in the following areas.

Fund Flows and Equity Market Activity The main explanation for the higher PE is the low interest rates.

Low cash rates makes the grossed up dividend yield of equities look reasonably attractive and, likewise, bond yields remain low compared to equity yields. Over the past month we have seen continued improvement in funds flowing into equities, especially offshore, and an increase in IPO activity in Australia. This augers well for listed fund managers and financials as clearly activity levels are picking up. Judging from the amount of new floats hitting our desks at present, we believe the outlook for next half is stronger again.

Offshore Companies The RBA has announced that they “need” to see the currency lower to drive an improved growth outlook for the domestic economy. We concur with this and expect to see a range of strategies with this goal in mind.

A lower currency would be helpful for the earnings of a range of offshore companies and furthermore the fundamentals of the US and global economies continue to surprise on the upside.

Australian Housing Companies exposed to the domestic economy have enjoyed a strong rebound over the past quarter as the market anticipates the improved confidence post-election will drive better earnings. We remain concerned this confidence will fade. However, we are more confident regarding the outlook for housing. Real estate conditions are picking up, and the key Sydney market is buoyant with strong clearance rates and good volumes.

DISCLAIMER This document provides general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Investment in a Dalton Nicol Reid individually managed account can only be made on completion of all the required documentation. Whilst Dalton Nicol Reid has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within.

February 2014 Motor Trader | 31

News

MICHAEL SCHUMACHER: A LEGENDARY F1 CAREER

SCHUMACHER’S GREATEST BATTLE T HE PLIGHT OF Formula One legend Michael Schumacher continues to be of major concern, although, as MT goes to press, efforts were reportedly being made to rouse the 7-times World Champion from his medically-induced coma.

The 45-year-old has been hospitalised since suffering major head trauma in a skiing accident on December 29 while on holiday in the French Alps. Schumacher fell, smashing his head against a rock, knocking him unconscious. Airlifted to hospital, his condition has been critical, with media reporting some experts fear, if he does regain consciousness, the damage could be severe.

Schumacher’s condition has prompted messages of support from around the world, and Mercedes-Benz has fitted their 2014 F1 car with the message "#Keep Fighting Michael" - a link to Twitter where fans can voice their support.

The accident has caused something of a re-evaluation of Schumacher's racing legacy. He honed his skills early at a go-kart track where his father worked. Spotted as a major talent, local businessmen bankrolled the young driver and he would become European go-kart champion by 1987 - a feat that was the springboard for a recordbreaking Formula One career.

In that career he would achieve astonishing feats including:

Sandra R. Barba / Shutterstock.com

Most race wins: 91 Most championship victories: 7 Most pole positions: 68 Most fastest laps: 77 He also garnered a reputation as being a fierce competitor. His collision with Jacques Villeneuve in the final race of the 1997 season was held up by some as an example of a ruthless streak. Villeneuve led by one point going into the race and needed to finish ahead of Schumacher to take the title. Villeneuve's car survived the collision and he would go on to win the title.

However he is viewed, there’s no doubt Schumacher was a brilliant driver. That his talent should partner the fierce and calculating streak of a born competitor should come as no surprise.

Sadly, it would seem that he will need to call upon all those reserves of passion and grit to see him through this greatest challenge.

1991

Qualifies in 7th spot for his F1 debut, the Belgian GP. However, his Jordan suffers clutch failure during the first lap of the race.

He changes teams to Benetton for the next GP.

1992

Schumacher triumphs in wet conditions to take his first Formula One win in Belgian. He finishes in third place for the season

1994

Becomes Formula One champion for the first time in controversial circumstances. Leading by a single point from rival Damon Hill going into the final race in Australia, Schumacher collides with Hill, taking both Hill and himself out of the race and securing the Championship.

1995

World Champion for the second time.

1996

Joins Ferrari and finishes third for the season.

1997

At the last race of the season in Spain, Schumacher again has a one-point advantage over his closest rival, this time Jacques Villeneuve of Williams.

Schumacher’s Ferrari develops problems and as Villeneuve attempts to pass, the pair nearly collide. Villeneuve wins the race and the championship.

2000- Ferrari and Schumacher hit a 2004 purple patch and Schumacher wins the Championship for five straight seasons.

2006

Retires after the 2006 season.

2010

Returns to Formula One with Mercedes-Benz. Finishes 9th for the season.

2012

Retires for the second time.

Motorsport Calendar V8 SUPERCARS

MOTO GP

Feb 27-Mar 2: Rd 1, Clipsal 500, Adelaide, South Australia Mar 13-16: NC Australian Grand Prix, Albert Park, Victoria

Mar 21-23: Rd 1, Qatar Losail International Circuit, Qatar Apr 11-13: Rd 2, Austin Circuit of the Americas, Austin, Texas

FORMULA 1

WRC

Mar 12-16: Rd 1, Australian Grand Prix Albert Park, Melbourne Mar 28-30: Rd 2, Malaysian Grand Prix, Sepang

Mar 6-9: Rd 3, Rally Mexico, Leon Apr 3-6: Rd 4, Rally de Portugal, Faro

32 | Motor Trader February 2014

Industry insight

BENCHMARKS, A SELFFULFILLING PROPHECY? R ETAIL MOTOR DEALERSHIPS heavily rely on benchmarking to monitor performance. In fact, it’s not just the dealers who use this tool but also the manufacturers, financiers and accounting firms. While industry benchmarks are an extremely useful tool, we have seen that the saturation and availability of benchmark data has so clearly identified the goal posts that many have failed to look past them to identify what may be attainable.

In short, the achievement of benchmarks has become a self-fulfilling prophecy.

For example, if a dealership’s sales team knows the gross profit benchmark is $2,000 per retail unit sold, the parts manager knows the gross profit benchmark is of 23 per cent, and the general manager/dealer principal knows a net profit return on sales of two per cent is acceptable, then they may believe that anything better is outperforming the market.

Benchmarks have largely remained unchanged over many years most likely, in BDO’s view, because their very existence has influenced industry behaviour. Why would a dealer suggest, much less create, a vision that net profit to sales of, for instance, six per cent is achievable when all staff know two per cent is an accepted industry benchmark?

In addition, why has the net profit to sales return become the ultimate measure of performance?

It is a reasonably reliable and quickly identifiable measure, but perhaps it should be used in conjunction with Return on Investment (ROI) and Return on Capital Employed (ROCE). This is especially true given the significant dealership investments in inventory, debtors, working capital and facilities.

For many dealers there is a significant time investment in meetings dedicated to comparing actual

“BENCHMARKS HAVE LARGELY REMAINED UNCHANGED OVER MANY YEARS MOST LIKELY, IN BDO’S VIEW, BECAUSE THEIR VERY EXISTENCE HAS INFLUENCED INDUSTRY BEHAVIOUR.” performance to industry benchmarks in the pursuit of identifying a weakness that will improve profitability. The reality is that BDO is yet to identify two dealers who have an identical method of accounting for all forms of revenue and expenditure. A dealer has the ability to influence their own performance against a set of benchmarks simply through accounting treatment. Some of the more significant examples include: • New vehicle factory bonuses taken to either reduce Cost of Sales (COS) or increase Other Income • Predelivery taken to either increase COS or increase expenses • The timing at which the many different forms of holdback are taken to income • The approach to calculating provisions, including doubtful debts, demonstrator and used obsolescence and warranty

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The use of loads/lot fees will potentially increase COS and inflate provisions or be periodically washed back through other income.

Dealer performance comparison can become ever more distorted if you add into the mix commercial elements such as: equity in stock, capital structure, commerciality of dealer principal remuneration, ownership structure and investment in facilities.

BDO COMMENT

BDO advocates benchmarking, but urges dealers to also be mindful of the many differences caused by wide and varied accounting treatment and actual commercial differences.

Importantly, benchmarks should not suppress the desire for greater financial returns simply because their very existence identifies what is satisfactory. Dealers must use caution to ensure that benchmarks are not a self-fulfilling prophecy.

FREE DOWNLOAD

MTAQ readers can download a copy of the BDO Automotive Benchmark & Tax Data 2013/2014 from our website www.bdo.com.au/ AutomotiveBenchmarkCard For more information about benchmarking best practice, please contact Mark Ward, BDO Automotive Lead Partner, (07) 3237 5744 or mark. ward@bdo.com.au February 2014 Motor Trader | 33

NAtioNAL AutoMotivE ExPErtisE Working with BDO’s Automotive specialists gives you direct access to experienced local automotive advisers who bring the benefits of a national team providing you with added depth of knowledge and contacts.

BDO knows that both experience and accessibility is important, which is why we have experienced Partners and staff resident in each capital city. Our national team provide a wide range of financial and consulting services to the automotive sector throughout Australia. The following is a summary of our services.

• • • • • •

Tax advice and compliance services Audit and assurance services Strategic planning Family business and succession planning Training Business valuations and due diligence services

• • • • • •

Buy/sells Operational Reviews Profitability enhancement and benchmarking services Specialised budgeting programmes Superannuation planning Salary reviews and recruitment services.

For more information please contact the local lead Automotive adviser in your State or your usual Automotive contact. Alternatively please visit bdo.com.au/automotive

Mark WarD National Leader Tel: +61 7 3237 5744 mark.ward@bdo.com.au

tiM pullMan Partner, Adelaide Tel: +61 8 7324 6107 tim.pullman@bdo.com.au

chris burton Partner, Perth Tel: +61 8 6382 4672 chris.burton@bdo.com.au

paul bull Partner, Sydney Tel: +61 2 9240 9978 paul.bull@bdo.com.au

Distinctively different – it’s how we see you Audit • tAx • Advisory

Mal sciacca Partner, Darwin Tel: +61 8 8981 7066 mal.sciacca@bdo.com.au

siMon scalzo Partner, Melbourne Tel: +61 3 9603 1806 simon.scalzo@bdo.com.au