Background to the formation of ARAA.
A number of recyclers met in April, 2010 to consider the circumstances currently facing the industry. The crucial question addressed was how to best achieve effective future national representation for auto recycling businesses. Over recent years the industry has experienced two differing models for national representation:
One model has been the "federation" model where businesses are members of a state or territory motor trades association which has a "recyclers" division within that association. The associations are affiliated with the national motor trades body. The auto recycler divisions meet under the umbrella of that national body to develop national industry policies;
The other model has been a “direct membership” model where businesses are direct members of a national association and national policies are formulated through a representative process at the national level.
APRAA started its life as a direct membership association but took the decision some years ago to change to a “federation” model. There are many in the industry who have held concerns that this change imposed constraints and a level of “bureaucracy” on APRAA’s decision making processes such as to make it less effective in addressing challenges that face the auto recycling industry.
These concerns have been exacerbated over the past six months by developments that have occurred within the national motor trades associations environment. MTAA membership is now reduced to two states and two territories, and a new entity purporting to be a national representative association for the automotive industry has been established comprising four “eastern states” associations.
The problem for the recycling industry is that the differences that exist between these two bodies are very significant, and these are not likely to be resolved in the foreseeable future. As a consequence the national representation of auto recyclers is diminished, and resources able to be applied to addressing policy issues affecting this industry are constrained.
Over time, it became evident that the interests of the auto recycling industry are best served by recycling businesses having the option of being represented through a new national association that will be 100% focussed on the needs of this industry. It will in the end be a matter for recycler businesses to determine whether they support this new association, and whether they choose to become a member.
It is clearly understood that APRAA will continue to operate and will continue to address national policy issues affecting the auto recycling industry. It is not envisaged there will be significant differences in policy direction between APRAA and the new association.
The rationale for formation of the new association is the expectation that it will have a better national reach than either APRAA or any entity established under the “eastern states” arrangement, and that it will be better placed to act on national policy issues and to deliver more timely and visible benefits to recyclers.
Other than the offer of effective national representation, there is no intention to offer services to auto recycling businesses that would conflict with those offered by the state MTA’s, and the new association will support businesses being a member of their relevant state or territory association. If APRAA was prepared to do so, it would be the objective of the new association to work closely and cooperatively with it.