Imported Motor Vehicle Industry Association Incorporated
Annual Report
1 April 2013 ~ 31 March 2014
Imported Motor Vehicle Industry Association Incorporated
Annual Report for the period April 2013 to March 2014
Annual General Meetings
South Island:
North Island:
National:
Christchurch,
Auckland,
Auckland,
Wednesday 28th May 2014
Thursday
29th May 2014
Thursday
29th May 2014
Officers
Patron
Chief Executive
Secretary
John Nicholls
David Vinsen
Alistair Sheard
National Executive
Chair, North Island
Chair, South Island
Graeme Macdonald
Lloyd Wilson
Frank Willett
Nick Owens
Solicitors
Lee Salmon Long
Accountants
Henning & Associates
Independent Review Accountants
Grant Thornton
Bankers
Westpac
ANZ Bank
Public Policy Strategists
Saunders Unsworth
Mission Statement
“IMVIA is committed to supporting & promoting the vehicle import industry”
IMVIA represents those who are directly or indirectly involved in the importation, refurbishment and
marketing of vehicles.
On behalf of the National Executive of the Imported Motor Vehicle Industry Association, I
present this Annual Report covering the activities of the association for the 12 months from
April 2013 to March 2014.
1. Overview
The imported motor vehicle industry and this association have had excellent results over the
past year, with the following key results:
 The effects of the implementation of the final phase of the Vehicle Exhaust Emissions
Rule in January 2012 working their way through the system, allowing access to
greater numbers of compliant stock for purchase.
 Strong volumes of used vehicles being imported, with no obvious reductions in sight.
 Consultation on the implementation of ESC, with a satisfactory outcome proposed in
the draft rule announced by government
 Continued strengthening of the association’s finances as the result of generous
financial support from our sponsors and corporate members, as well as the
development of additional revenue streams from technical services
 Accreditation by NZTA for the issue of Exhaust Emission Certificates.
 Consultation and advice to Australian government departments, Productivity
Commission and used vehicle industry on the likely effects of their industry being
deregulated to some degree.
Now that a schedule for the implementation of mandatory ESC has been proposed, there
are no substantive policy or legislative changes planned that will affect our industry in the
near future.
The main focus for the association’s activities this year has been:
 Continued representation of the industry at both political and government department
levels.
 Active co-operation with the government departments and ministries that impact on
our industry.
 continued close management of the association’s budget, funding, and financial
performance.
2. Governance: National Executive
National Executive has met regularly throughout the year, either in Auckland or Christchurch.
National Executive is comprised of the chairs and deputy chairs of the North and South
Island branches, along with a secretary. There have been no members co-opted this year.
From time to time, National Executive also sought advice from members with specific
industry experience on various technical issues, especially heavy vehicles.
Those members who volunteer their time to service on National Executive deserve thanks
and appreciation are due to National Executive. The association and its members benefit
greatly from their contributions and input; they take a professional approach to the direction
and governance of the IMVIA, and their careful oversight has directed the association into
the sound position that we are now in.
3. Branch committees
Other than at the AGMs, it has again not been necessary for the branch committees to have
met this year. Our emailed Alerts keep members informed of current issues and changes in
our industry, and we have called groups of members and sponsors together who have
specific interests when we have been dealing with particular concerns.
4. Management
The Chief Executive formally reports to National Executive; he is responsible for
implementing the policies of National Executive, and for managing the day-to-day affairs of
the Association.
The Chief Executive continues to manage the operation as an independent contractor, rather
than as an employee.
5. Staff
Our staff consists of:
 Bev Purchase, Office Manager,
 Malcolm Yorston, Technical Services Manager
Bev continues to manage the administration of the association on a part-time basis, following
the restructuring of her position.
We have managed with minimal staffing for the past four years, and although we have been
able to maintain our core services of political advocacy and technical advice, the association
has been stretched from time to time, particularly with regard to office hours and covering for
leave and absences.
New staff member
Since the end of this reporting period, we have employed a new staff member, Kit Wilkerson.
His role is Policy Advisor and Analyst, which will be a broad-based support role,
encompassing statistics, technical support and communications. This appointment will
provide Malcolm with an understudy and back-up, and ensure that we can provide technical
support and other services at all times during regular office hours. Kit’s skill set will also
strengthen our ability to research and prepare submissions and to participate at the highest
levels in consultations with government officials.
6. Financial
This year our annual financial statements were again reviewed by an independent
accountant, and the reviewed financial reports have been posted on our website.
The association’s confirmed result for the 2014 financial year was a surplus of $269,199, a
significant improvement over last year’s result. The surplus leaves us in a strong cash
position.
Recognition and thanks are due to our sponsors and corporate members who voluntarily
increased their contributions last year, and in particular to Autohub for their extremely
generous regular contributions.
The 2014 financial reports have been finalised, reviewed and posted to our website, and will
available for discussion at the AGM. The focus of this year’s budget has been continued
close control on costs.
7. Membership
We have continued to focus on retention of members again this year, and have also
recruited some new members; they usually require some specific service, especially
technical services and information. We have also recruited service providers to the industry
as new members.
8. Core activities
Technical
We provide the following technical services:
Statements of Compliance and advice on compliance issues
Exhaust emissions Certificates.
Applications to NZTA for exemptions for a wide range of compliance issues
Assistance with documentation for UK vehicles
Singapore Letters (Technical Extracts)
Fuel Consumption Certificate assistance
Liaison with NZ Transport Agency and Ministry of Transport
Advice and assistance on Entry Certification issues
Participation in various consultative and working groups on vehicle- and road
transport-related issues
Liaison and consultation with MPI (formerly MAF)
Liaising with manufacturers for technical information
Research into international standards
Advice on technical issues, for both new and used vehicles
We have excellent relationships with NZ Transport Agency, MoT and MPI (formerly MAF),
NZ Customs, EECA and other government departments and agencies, and we are involved
in consultation on all new initiatives that might affect our members and the industry.
9. Key issues
General:
The government, through MoT and NZTA, has confirmed that there are no new transport
issues likely to impact our businesses in the foreseeable future. There is, however, on-going
government policy work in both safety and environmental areas, and we are well involved in
consultation on all relevant issues.
Safety
New Zealand is actively participating in the UN “Decade of Road Safety” action plan, and the
NZ government’s ”Safer Journeys” strategy is the policy direction for our participation.
The strategy adopts a “Safer Systems” approach to road safety, ie accepting that there are
always going to be road crashes, largely as the result of someone’s mistake, but that the
results of such a mistake should not necessarily be fatal or traumatic. This approach focuses
on four areas:
 Safer roads (design and engineering)
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Safer vehicles (standards and specifications, maintenance and inspections)
Safer drivers (training and education)
Safer speeds (review of speed limits, and standardisation of appropriate speed limits
throughout the country).
As reported last year, the area that has direct relevance to our industry is safer vehicles; in
this category, the government has identified the following issues:
 Implementation of a mandatory ESC regime for all vehicles entering the fleet.
 Encouraging the exit of less-safe vehicles from the national fleet
 Investigate the means for reducing the average age of vehicles in the national fleet
 Prepare a plan outlining intended legislative changes
The Minister of Transport is the Honourable Gerry Brownlee; his Associate Minister is
Michael Woodhouse (of Dunedin; previously Government Whip). The Associate Minister has
responsibility for transport safety and has taken an active role, becoming personally involved
in the consultations and discussions on ESC. He has met with the chief executive
And National executive members on a number of occasions, and attended our board
meeting in Wellington in February. The minister’s office, MoT and NZTA have confirmed that
there are no new road transport initiatives planned, other than the Safer Journeys items
listed above.
The government’s policy direction is towards less legislative intervention and more focus on
education and information.
a. Electronic Stability Control. (ESC)
Since last year’s report, the issue of mandatory ESC on all vehicles entering the fleet has
been dealt with. We had the opportunity to research, consult and actively participate with
government officials on the development of a proposed rule to ensure the earliest practicable
introduction of ESC, without severely limiting used vehicle import volumes.
As a result of our lobbying over the years, it has been accepted by government (ministers
and officials) that the timing and phasing of the introduction of new rules is critical to ensure
that used imports continue to be imported in good volume, in order to refresh the fleet, and
provide continuity and certainty for service providers to the industry. The discussions and
research around ESC were focused on preparing a schedule for the phased implementation
of ESC, to achieve these ends.
b. Exiting less-safe vehicles from the fleet.
Government officials have commenced working with industry to develop plans to encourage
the removal of “less safe vehicles” from the fleet.
This project is in the early stages; the first issue is to define ‘less safe”. Once a definition has
been agreed, the combined working parties will be considering all possible means of
encouraging the removal of such vehicles, including incentives, education and enforcement.
c. Reducing the average age of the fleet
Following on from dealing with less-safe vehicles, a further piece of work will be to develop
strategies to reduce the average age of vehicles in the fleet. We are actively participating in
the consultations with government officials on encouraging the accelerated scrappage of
older vehicles from the fleet.
c. Schedule of planned legislation
As flagged last year, government has now prepared a draft “road map” for the progressive
introduction of vehicle standards regulations. This is a helpful proposal, as it will mean that
industry and the association will know of intended changes well in advance, and will be able
to plan accordingly.
d. Fuel labels
We continue to consult and liaise with EECA on the Fuel Economy Labelling process. We
have also continued to work with NZTA, updating their Fuel Consumption database which is
used for the printing of both labels and fuel consumption certificates.
e. “Rightcar” website
We continue to consult and liaise with the government (MoT, NZTA and EECA) on making
the information on Rightcar more accurate, comprehensive, accessible and relevant.
f. Product Stewardship: End of Life Tyres
As reported in previous years, the Product Stewardship provisions of the Waste Minimisation
Act require all manufacturers and importers to take responsibility for their products for their
lifetime, and for their eventual disposal.
The first product stewardship proposal to affect the vehicle industry is a scheme for End of
Life Tyres, “Tyrewise”, which has been being developed by a commercial consultancy under
contract to the Ministry for the Environment.
We have been involved in the working group developing the scheme for the past 12 months,
along with MIA, MTA, regional councils and the major tyre importers and distributors,
collectors and recyclers. We worked closely with MIA to advocate that any levy on tyres
already fitted to vehicles being imported (new or used) should be collected by a government
agency, preferably at the time of the initial registration.
This working group finalised its research and made recommendations to the Minister for the
Environment late last year; the minister has now announced that a suite of Product
Stewardship initiatives, including for tyres, will be developed. Although it has been a long
process, it seems that there will now be some action at an official level. The IMVIA will
continue to represent the used vehicle import industry on this issue.
A project for End of Life Vehicles is likely to be the next initiative to affect us.
10. Heavy vehicles
Since the implementation of the Heavy Vehicles Brake Rule, there has been an issue
relating to rating the permissible loads for heavy vehicles (“chassis ratings”). We had worked
with NZTA on developing a pragmatic, reasonable method for calculating realistic chassis
ratings, but the diesel provisions of the Vehicle Exhaust Emissions Rule meant that there
were few heavy vehicles imported until recently, and the proposed methodology has not
been able to be tested.
Heavy vehicles have started to be imported again, and we have been reviewing the work on
this chassis ratings issue.
11. Australia
The Australian government’s decision to cease subsidising new vehicle manufacture has
meant that all three remaining Australian vehicle manufacturers have announced their
intention to cease operating. With no further need for import protection for the benefit of local
vehicle manufacturers, the government has indicated an intention to relax to some degree
their import regulations. We have been approached by our sponsors and service providers
who have an interest in the potential opportunities in a more open Australian market, and
have met with Australian government officials, their productivity Commission and industry
members. Australian used vehicle importers have recently decided to form their own
association, and they have requested our advice and assistance.
12. Vehicle Licensing Reform
MoT and NZTA have been conducting a review and subsequent reform of all aspects of
vehicle licensing, including the WoF and CoF regimes. The modifications to the WoF regime
change the frequency of WoF requirements; these are ve-0being progressively
implemented, starting from last October.
Work is still in progress on reviewing the CoF and vehicle licensing regimes.
13. Intelligent traffic management
There has been an increasing interest in the development of intelligent vehicle and traffic
management systems; ESC is one example, driverless cars another. NZ government is
monitoring developments overseas, both in new vehicle technology and communications
and traffic management systems. The government has gone so far as to set aside radio
spectrum as a contingency for the introduction to these various technologies.
We have been involved in researching the various issues, and participating in seminars and
discussions.
14. Consultation & Submissions:
We have been involved in consultations and submissions on a number of issues:
 Electronic Stability Control legislation
 Various Land Transport Rules and Amendments
 Review of Vehicle Licensing (including WoF)
 Product Stewardship for End of Life Tyres
 Strategy for managing the national fleet
 Exiting less-safe vehicles from the fleet
 Introduction of intelligent traffic management and communications systems
 Ministerial Forum on Electric Vehicles
15. Communications & Marketing
a. Internal Marketing (to members and the trade)
All of our communications are electronic, by email and hyperlink to our website.
 Alerts are emailed on an “as needed” basis, to advise members of specific technical,
legal, employment or market issues, with an emphasis on brevity, accuracy,
timeliness and relevance.
 Brochure: a new brochure, explaining the role of the association in the industry
 Video: we commissioned a video, showing the importation process.
 General media and press releases. Once again, we have worked closely with the
dedicated trade media, “Autofile” and “AutoTalk”.
 We have also been interviewed and quoted on TV, radio and the press on issues that
affect our industry. .
 Members have received a variety of marketing items, including calendars, diaries etc.
b. External Marketing (to the public)
The association continues to have the policy of not promoting IMVIA to the public.
Our policy is to confine our communications activities to members and the trade, unless
required by specific issues of public interest.
c. Industry networking
We have taken an active role in developing and fostering relationships between all
organisations, both commercial and political, involved in the used vehicle industry. The
benefits of these relationships includes a much better understanding, by all parties, of the
key issues that will affect our industry, and the likely effects on the trade and the motoring
public. This improved understanding leads to better outcomes for the industry and the public.
d. 25th anniversary celebrations
The association is now 25 years old, and we will be celebrating this occasion later in the
year.
16. Commercial activities
Technical information, stationery and material supplies
IMVIA continues to supply specialist stationery and forms, materials for the VIN process and
technical services. These are taxable activities and contribute to our income.
There has been continued demand from members for advice on consumer complaints and
employment law issues.
17. Strategic Relationships
We liaise with and maintain ongoing relationships with the following organisations:
 NZ Transport Agency
 Ministry of Transport
 NZ Customs Service
 Ministry of Business, Innovation and Employment (the “super ministry”, formed from
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the merger of the Department of Labour and Ministry for Economic Development)
NZTA’s Industry Consultative Groups
Ministry of Primary Industries (formerly MAF)
Ministry of Economic Development & National Enforcement Unit
Ministry for the Environment
Commerce Commission
EECA
Motor Industry Training Organisation
Employers & Manufacturers Association (legal advice on employment issues)
Vehicle Service Federation
MTA & MIA (combined action on common industry issues)
ICAR NZ (collision repair standards & training)
Port companies (logistics issues)
IRD (liaison regarding unregistered traders)
CBAFF (Customs Brokers and Freight Forwarders Federation)
18. Sponsors
We wish to place on record our appreciation and thanks to our sponsors for their generous
contributions and assistance to the Association:
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Armacup Maritime Services
Autosure
Jacanna
JEVIC
Nichibo
Ports of Auckland
VINZ
We have also had significant contributions from International and Corporate Members,
including Heiwa, Autoterminal, and McCullough Limited.
We are particularly appreciative of the very generous contributions from AutoHub.
19. Future
In the words of one of our International Members: “the IMVIA’s job is to keep the door open
for used imports into NZ”.
The IMVIA continues to be the only effective voice for the used import vehicle trade, and our
experience in Australia over the past few months has convinced us of the strength of the
association and the value of our brand. We need the assistance of all businesses with a
vested interest in this trade to continue. We look forward to your continued support, both
financially and in numbers, so that we can continue to provide excellent service to our
members and to the wider used import trade.
We see the development and introduction of new technology as being the key issue that will
face the used vehicle import industry over the medium term, and we have already identified
areas that will require our active involvement and focus.
The excellent financial results this year, combined with the relatively benign political
landscape, mean that we are well positioned to deal with these challenges as they arise.
David Vinsen
Chief Executive