Action to Combat Illegal Car Trading
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The trusted voice of the auto industry for more than 25 years Issue 18-2013 8 October 2013 In this issue Action to combat p7 Employee jailed for fraud p8 Hard times across ditch p10 Ships in gulf slow down illegal car trading p12 Greens moot fumes fee he number of unregistered vehicle business without being the courts this year, with 71 more p15 High-tech focus on fleet car traders facing registered as a trader. prosecutions being projected. prosecution in 2013 is likely He sold 11 cars over a 12-month There are two in Auckland, one p17 Guidelines on Trade Me Tto be double the amount of cases period, while the maximum in Wellington, three in Waikato, that have ended up in court over allowed in the Motor Vehicle Sales two in Christchurch and one the past eight years. Act (MVSA) is six. in Rotorua, with the number The figures are given in But the 20-year-old’s case is of vehicles allegedly involved documents submitted for the only the tip of the iceberg with the ranging from eight to 24. Ministry for Business, Innovation MBIE receiving a steady stream of The legal action planned and Employment (MBIE) during the complaints about illegal dealers. for this year compares to 44 sentencing of an illegal dealer in This has led to a large number prosecutions between 2005 and Dunedin District Court. of investigations being launched 2012. Three were in 2005, 14 in 100% As previously reported into unregistered traders because of 2006, 10 in 2007, four in 2008, New Zealand by Autofile, Daniel Stuart the effect their actions have on the seven in 2009, five in 2010, one in Owned Procter was last month fined automotive industry and buyers. 2011 and none last year. Freephone: 0800 435 7868 [email protected] • www.protecta.co.nz $4,500 for operating a motor Nine cases have gone before [continued on page 4] Zero emissions Massive support for sale debut for race he vast majority of Wellington on September 20. approval with the deal likely to be members of the Motor The vote followed MTA signed at the end of this month. Trade Association (MTA) roadshows at 14 locations across “It was good to get 96 per haveT backed their board’s the country aimed at securing cent of members, either in recommendation to sell more enough support for Stuttgart- person or through power than half of Vehicle Testing New based DEKRA SE to buy 60 per of attorney, supporting this,” Zealand (VTNZ). cent of VTNZ. says David Storey, president of The proposal attracted an As Autofile went to press, the the MTA. approval rating of 96 per cent at final stage of the process was to “Our roadshows covered all p14 a special general meeting held in secure Overseas Investment Office [continued on page 6] HAMILTON BOYS' CROWNED 1ST XV NATIONAL CHAMPS Bryn Gatland Sam Chongkit and Jacanna Customs & Freight/Pacifi c Jarrod Gwynne Auto Carriers (PAC) have great delight in congratulating Hamilton Boys High School 1st XV in stopping Auckland's St Kentigern College 1st XV’s unbeaten run of 52 games to win the National First XV Championship and we wish them all the best when they represent New Zealand at the Sanix World Rugby Youth Tournament in Japan early next year From shore to shore and door to door JACANNA and PAC PROUD SUPPORTERS OF SCHOOL SPORT IN NEW ZEALAND Tel: +64 9 838 4944 www.jacanna.co.nz editor’s note HAMILTON BOYS' CROWNED 1ST XV NATIONAL CHAMPS Illegal trading feels force of law taff at the Ministry for unregistered dealers’ behaviour Business, Innovation and leaves a sour taste in the mouth. Employment (MBIE) should The effects of their actions on stepS forward and take a bow. legitimate business people, the EDITOR ADVERTISING The full extent of offending industry and buyers cannot be Darren Risby Brian McCutcheon on the so-called “grey market” is underestimated. [email protected] [email protected] revealed in this issue of Autofile Times, however, have changed 021 137 5430 021 455 775 with the numbers being high, since the advent of the Motor JOURNALIST DESIGNER although one wonders how many Vehicles Sales Act in 2003. Cameron Carpenter Adrian Payne law-breakers go undetected. There has been the arrival of the [email protected] [email protected] In the past, there have been internet as a mechanism for trading murmurs from some in the industry Autofile is also available as an electronic copy via email. If you’d like to receive electronic and, in some respects, it may be copies please send an email with your name and organisation to: [email protected]. that perhaps shill bidders have easier to fly under the radar in the Back copies are also available on request. been singled out by the authorities. digital age. Copyright: Published twice monthly by 4Media, PO Box 6222, Dunedin 9059 But let’s make no mistake – dodgy Some old chestnuts – such All statements made, although based on information believed to be accurate and reliable, dealers artificially inflating prices by as car fairs and vehicles for sale cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of autofile in whole or part, without written permission, whether by xerography bidding on their own auctions are on roadsides – are on the law or any other means, is strictly forbidden. All rights reserved. criminals and risk prosecution by the enforcers’ radars. Commerce Commission. This, combined with exchanging The actions of a few rogues information with other agencies tarnish the image of the industry and organisations, means the MBIE ACCESSORY while damaging the business is taking the problem with illegal models of those operating within dealers seriously. Bryn Gatland Sam Chongkit and the law, so it’s quite right justice There’s still plenty of daylight BUNDLING Jacanna Customs & Freight/Pacifi c Jarrod Gwynne should be brought to bear on them. between maximum penalties and CREATE AN EXCLUSIVE MODEL Auto Carriers (PAC) have great delight There have also been some sentences imposed. FOR YOUR BRAND concerns that not enough is being Carrying on the business of in congratulating Hamilton Boys High WINDOW TINTING SUNROOF done to thwart unregistered motor vehicle trading without BLUETOOTH LEATHER SEATS School 1st XV in stopping Auckland's traders selling more than six being registered attracts a fine of COMMAND CENTRE WITH BADGING GPS REVERSING CAMERA vehicles a year. up to $50,000 for individuals and St Kentigern College 1st XV’s unbeaten SPORTS SEAT UPGRADES With the MBIE setting up a $200,000 for companies. run of 52 games to win the National First team to tackle the issue, there can This means there’s a lot of STRIPES XV Championship and we wish them no longer be any complaints this law-breaking to be had before the skullduggery is being ignored. higher end of financial penalties all the best when they represent New The ministry has prosecuted come into play, but sentences need Zealand at the Sanix World Rugby Youth nine offenders so far this year, with to be high enough to have effect. 71 more court cases anticipated, Prosecutions are viewed as a Tournament in Japan early next year but there should be some head last resort in these cases, which is a BLIND SPOT ELIMINATOR scratching about 2012 when there shame because a criminal record is RUNNING BOARDS were no prosecutions. a decent deterrent on top a fine. On average, the compliance But the costs of going to court WHEELS PARKING SENSORS team sends out 143 warning may be disproportionately high VIEW and VIDEO WWW.DEALERSHIPEDITIONS.CO.NZ From shore to shore and door to door JACANNA PAC letters each month and refers 22 so the enforcement agencies, with PROUD SUPPORTERS OF SCHOOL SPORT IN NEW ZEALAND cases for prosecution. limited budgets, often opt to secure PACKAGES FOR ALL VEHICLES Compliance is achieved when resolution before going to court. dodgy dealers stop selling or go on And people working legally the Motor Vehicle Traders’ Register, in industry can do their bit by which partially explains why bringing the criminals to the Driving Solutions registrations have shot up this year. attention of the authorities. Retro Vehicle Enhancement | www.rve.co.nz | 0800 RETRO 4U As with shill bidding, Darren Risby, editor Tel: +64 9 838 4944 www.jacanna.co.nz www.autofile.co.nz | 3 news [continued from page 1] Illegal traders face justice Given the size of the problem, Vehicle Industry Association Companies Office has employed (IMVIA) were considered in the a compliance team to investigate Procter case to show illegal offenders. traders “harm those complying It’s sending an average with their obligations”. of 143 letters per month Chief executive David Vinsen seeking compliance, with the – in his briefed evidence – states “vast majority of people” then it costs $595.95 to register as a registering as motor vehicle motor vehicle trader. traders “or ceasing to act as one”. Other compliance costs On average, 22 are referred to include paying GST and tax, and the prosecution team with further ensuring information on the steps taken to obtain compliance, consumer information notices which comes in at around seven “Significant fines are necessary (CINs) is correct. prosecutions every month. The court was told the industry “One might expect if sentences for the deterrent message to is experiencing major problems were having a deterrent effect, – MBIE submission with unregistered individuals it would result in a reduction in have effect.” and companies, but it’s difficult allegations and prosecutions,” says to estimate the average margin Steve Symon, counsel for the MBIE, in referrals are a last resort for those Further insight into illegal of resale on used vehicles with so his submissions on the Procter case.