ARAA Policy Agenda | Auto Recylers Association of Australia

ARAA Policy Agenda

ARAA policies will be set by the National Policy Council after due consideration and consultation with the industry. As a starting point however, the following are issues we would expect to be on our policy agenda over the period ahead.

Please give us your comments on these proposed topics – just click the item of interest:

The Future Direction of Our Industry

The future for the automotive recycling industry lies in the promotion of its green credentials, and recognition by governments and the community of the substantial environmental contribution this industry makes through both the recycling of automotive parts and by ensuring the environmentally sound management of End-of-Life Vehicles (ELVs).

ARAA has a vital role to play in working with governments in the development of a sensible and practical regulatory framework for the treatment of end of life vehicles.

Promotion of Environmental and Economic benefits of Recycling

ARAA policy should clearly state the environmental and economic benefits that flow from the use of recycled components, and promote ‘ reuse’ whenever the opportunity arises.

Enhancement of the Public Image of the Recycling Industry

There is a need for development of a national public relations strategy that lifts the profile and promotes the value to society and consumers of the automotive recycling industry.

Proposed New ARAA Accreditation Program

The focus of a new accreditation program should be on providing recyclers with the tools they can use to improve their business and raise industry standards so that they are in tune with the expectations of our modern society.

It should give businesses the ability to enter the program and provide them with the assistance needed to enable them to improve all areas of their operation. It should be a management tool that provides a pathway through a course of action and ongoing improvement to meet agreed industry standards.

The Accreditation program should provide the continuous improvement stepping stones. It should define the objectives and provide a mechanism to help businesses achieve them. It should be simple, and should address the issues that actually matter.

The Accreditation program should allow recyclers to progress at a rate that they are comfortable with and recognise the progress and achievements each business makes.

Written Off Vehicles

It is important that the auto recycling industry develops a clear view as to the potential economic impact on this industry of a change in the current regulatory regime relating to “economic write-offs”. The current New South Wales government is the only government that has so far endorsed this approach and committed to legislate for change. It is likely other governments will follow, but our industry needs to clearly understand the new operating arrangements that will be adopted by regulators and insurers, and have a clear policy position on the conditions it believes should apply in the future.

Land Fill Reduction Strategy

Automotive demolition is a significant contributor to landfill with only 70% of the vehicle able to be re-used. There may be ways in which the auto recycling industry could contribute to a reduction in the volume of landfill, through measures such as recovery of tyres, bumper bars and other plastics. ARAA should explore means by which there can be a “win-win” outcome of an economic benefit to auto recyclers and an environmental benefit to the community.

Future “Cash for Clunkers” Programs

How are all the ‘Clunkers’ disposed of? Who handles them? What are their qualifications? How much are the worth? There are many answers to be sought.

There is a far greater negative environmental impact from replacing an old car with a new car than could ever be caused by the higher levels of carbon dioxide emissions that flow from continued use of the older vehicle.

The total level of greenhouse emissions attributable to the manufacture of each new motor car massively exceeds the level of atmospheric pollution produced from fuel consumed by the older vehicle it is replacing.

The same applies for replacement parts. It is important that governments at all levels understand and accept the environmental benefits that derive from replacing damaged or worn parts with recycled parts rather than new parts.

Relationships with Insurers

It is important that the motor vehicle insurance industry respects and has confidence in the Auto Recycling industry as a credible and professional supplier of replacement auto parts.

In all circumstances where use of a second-hand part is appropriate, ARAA will seek to evidence to insurers that the Australian auto recycling industry is capable of meeting their needs.

Relationships with the Body Repair and Mechanical Repair Sectors

Body repairers and mechanical repairers are the most important customers for the bulk of auto parts recyclers.

ARAA needs to do all that is possible to promote the professionalism, competence and capability of the auto parts recycling industry to meet the needs of these businesses.

Product Liability Insurance

This is an issue that may be being overlooked by many recyclers. Having adequate insurance coverage addresses risks potentially faced by recycler businesses.

Refrigerant Recovery Regulation - Restricted refrigerant handling licence for refrigeration and air conditioning equipment decommissioners

Effective refrigerant recovery, along with other environmental impact issues associated with End of Life Vehicles, will inevitability make it necessary that all enterprises handling ELVs be properly regulated and monitored to ensure compliance. ARAA must play a leading role in guiding this process or we will be governed by any number of regulatory authorities, all with different agendas, seeking to exercise control over our activities.

Insurers Preferred Supplier Schemes

ARAA should seek to ensure that all preferred supplier schemes maximise the opportunity for increased use of recycled parts in the repair of motor vehicles. ARAA should pursue the opportunity for all recyclers who meet agreed standards to participate in such schemes.

On-Line Salvage available to Accredited Recyclers

After earlier promising indications of insurance company support for such a scheme, progress has stagnated. There is a need for ARAA to regenerate activity around this.

Constructive Working Relationship with the National Motor Vehicle Theft Reduction Council (NMVTRC)

The NMVTRC is jointly funded by the State and territory governments and by the Insurance industry with the objective of reducing the incidence of vehicle theft across Australia. The auto recycling industry is able to play an active and positive role to limit the activities of car thieves. ARAA will look to work closely with the Theft Reduction Council so that it can pursue its agenda in harmony with the auto recycling industry.