Government bureaucracy and regulations can seem daunting at the best of times. Fortunately, there are influential forces looking out for the interests of dealers on these matters. Here are a few of the people working for you.
John Sutherland
Nova Scotia Automobile Dealers Association
John, who is currently the Executive Vice President for the NSADA, has been actively involved in government relations for 25 years. During that time he’s seen the car business evolve substantially and along with it, the approach taken by legislators when it comes to adopting and enforcing regulations.
“One of the biggest challenges we have faced and continue to face, is to help policymakers understand how the rules they propose and implement have an impact on dealers. Most of the time, before we get involved in the process, they simply are not aware of what the outcome might be,” says Sutherland.
Although Sutherland admits that sometimes it can be a difficult process, he says that it’s important to develop a working relationship with the province and even rival political parties to ensure outcomes that produce favourable results on both sides.
“An us versus them mentality simply doesn’t work. You need to take a proactive approach and engage with them; one way we do this is via regular meetings, including annual conferences with the provincial government and the opposition parties. Furthermore, you have to bear in mind that especially these days, budgets are often limited. The provincial government’s biggest priority lies with education and health care, thus it’s often hard to compete with that, especially if you’re asking for support on certain issues.”
However, Sutherland cites one of the biggest factors dealers have in terms of leverage, is making legislators comprehend the economic impact of the car business on the province. “We have to consistently remind policy makers just how significant auto dealers are to Nova Scotia as a whole. They’re largely independent businesses and major employers, particularly in smaller communities. The [Canadian Automobile Dealers Association] is very helpful in providing economic data for our province and it’s by making legislators aware of this data and the economic impact that we’re able to move ahead on key issues.”
And, among those issues currently affecting dealers in the province, Sutherland cites the Title Transfer Act as a significant one. “Currently the process takes too long,” he says. “We’ve been working with the province to implement a more effective approach, though like anything else it takes time. We’ve been told we’ll see amendments sometime this year but we’ve already experienced delays and at present an actual date still has to be determined.”
As a result, although the NSADA knows what the act will be, it still hasn’t seen the actual regulations contained within it, so it’s proving a difficult process to help dealers prepare for it. “In the meantime,” Sutherland says, “we’ve set up a task force to look into the issue. We have a pilot program that’ll be running through July this year and have developed a sales agreement that we believe, will help meet the regulations as we understand them.”
Geoff Sine
Manitoba Motor
Dealers Association
In his role as Executive Vice President of the MMDA; one of Geoff Sine’s tasks is to work with the provincial government and civic departments, essentially to become an integral part of the consultation process when potential new legislation is drafted that could impact the auto industry in Manitoba.
And so far it appears that the MMDA’s approach is proving to be an effective one. “We’ve been lucky enough that today, the province looks to us for advice when considering many new pieces of legislation and since I’ve been in the job since last May things have been going quite smoothly.”
That said, there are still some issues of contention for dealers in Manitoba, one of them being new disclosure regulations. “Although dealers are required to disclose, both verbally and on paper, a vehicle’s history when selling it, such as prior accident damage, liens, or limousine use, there was considered a need for an official document to make this information easier to understand for the customer.”
Additionally, as new legislation is being introduced in other provinces, there’s a perceived need to harmonize standards and regulations in Manitoba, in order to reduce complexity and red tape. Key examples include developing new regulations regarding vehicle servicing and repair and advertised all-in pricing relating to the Motor Vehicle Act, something that’s also being discussed in Ontario.
“We’ve been pushing for this for sometime,” says Sine, ”and things are moving forward, but there’s still no finite deadline yet.
Blair Qualey
New Car Dealers Association of British Columbia
In Canada’s westernmost province, auto dealers contend with a significant number of government regulations. The dealers have a voice, however, with the New Car Dealers Association of BC, headed by Blair Qualey.
“One thing we can say is that it’s never dull. Legislation and political directions are always changing and we need to be on our game to ensure we keep abreast of the latest developments,” says Qualey.
One of the biggest areas of contention at the moment concerns the province reintroducing two separate sales taxes. “The blended HST was a major boon for business,” says Qualey “because it made things a lot simpler. However the people of the province voted and the government is in the process of abolishing it and returning to separate GST and PST. As a result, we as an industry are going to have to spend more money and resources; it’s not an ideal situation but we will do what we can to make it work. There will be some amendments and a sales tax on privately sold vehicles will help level the playing field, but it will be challenging.”
Other issues include working with the Motor Vehicle Sales Authority to “bring the Motor Dealer Act into the 21st century. As it stands, the Act is simply inadequate for licensed dealers selling vehicles in the province, so we’re pushing for amendments to improve it.”
Another highly contentious issue concerns emissions regulations on new vehicles and the NCDABC lobbied the government to ensure the province adopted EPA standards. “That was very significant,” says Qualey. “B.C. has long considered itself a champion of the environmental movement, so from our standpoint it’s critical that our industry gets a chance to voice its concerns on proposed regulations.” A significant breakthrough has come via B.C.’s clean energy vehicle point of sale incentive program. “We were in talks with the government. They asked us for suggestions and ultimately ended up giving us responsibility to run the program, which provides up to $5,000 for purchasing ‘green’ vehicles. It means less time contending with red tape and chasing bureaucrats, allowing dealers to get back to their core business.”
Frank Notte
Trillium Automobile Dealers Association
In Ontario, auto dealers have had to contend with a number of significant issues in recent years, relating to government legislation. These range from introducing the HST, to the pricing act and amendments to the province’s Drive Clean emissions program. And they’re all topics that Frank Notte, Director of Government Relations at the TADA has been actively involved with.
“Today, given that there has been a lot more focus on regulations directed at our industry, the need for dealers to have a unifying voice is becoming increasingly important. By having a committee that’s able to present issues affecting dealers to legislators, we’re often able to leverage our position and influence the outcome on a number of different legislative matters,” says Notte.
Notte says that one of the most effective strategies for doing so is via written submissions and also to acknowledge and recognize the provincial government and policy makers if they do something positive that helps the industry.
“I think it’s a significant aspect of this role,” says Notte. “When somebody does something good like the HST, which has helped level the playing field, you need to acknowledge the fact; doing so goes a long way to help building and maintaining a good relationship. Our primary goal remains serving the interests of dealers and consumers, but cooperation and maintaining dialogue with government and the opposition parties are critical to ensure progress on the legislative front.”
Currently, the TADA is working with legislators on a number of key issues, notably the Motor Vehicle Dealers Act. “One of the key problems at present concerns pricing,” Notte says. “Dealers have to officially list the price of a vehicle with all features and options except tax. Manufacturers are currently exempt, so when a customer sees a price advertised from the manufacturer and sees the same car listed for significantly more at a dealer, they often feel misled. It’s frustrating for dealers because the customer is unhappy and there isn’t much a dealer can do since they are playing by one set of rules and the manufacturers another. It’s something we’re actively seeking to address.”
Another issue concerns reducing red tape when it comes to the Drive Clean Program. “Currently, the government requires that vehicles seven years or older to be tested for emissions every two years, before they can be licensed for the road. However, when it comes to transfer of ownership, a late model car, such as 2010 model still needs a Drive Clean Certificate before it can be registered for the road. It’s confusing and another obstacle currently facing the industry when it comes to buying and selling cars.”
