(1) How many units of motor vehicles were imported under the Low Volume Import Scheme (LVIS) in 1999.

(2) Was the purpose of the LVIS, introduced in 1989, to permit importation of motor vehicles that the Full Volume Importers (FVI) do not import.

(3) What is the estimated number of LVIS business closures throughout Australia resulting from the introduction of the Specialist and Enthusiast Vehicle Scheme (SEVS), effective from 9 May 2000.

(4) What will be the impact on FVI businesses resulting from the introduction of the SEVS.

(5) How many FV new motor vehicle importers are there in Australia and how many motor vehicles do they import annually.

(6) How many low vehicle importers are there under the LVIS and how many motor vehicles do they import annually.

(7) How many new and used motor vehicle transactions have there been since 1997.

(8) Under the Automotive Competitiveness and Investment Scheme, has the Government subsidised over $2 billion to the automotive industry, consisting of four major manufacturers and approximately fifty importers.

(9) Will the elimination of LVIS businesses through the SEVS result in the loss of many thousands of employees.

(10) Will the SEVS result in an oversupply of a smaller number of models of motor vehicles.

(11) Does the LVIS vehicle market cater for vehicles that the full volume market importers failed to appreciate as import lines.

(12) Prior to the enactment of the SEVS, is it mandatory for the amendments to the regulation to be subject to a regulatory impact statement.

(13) Has a regulatory impact statement satisfactory to the Productivity Commission been provided to the Government?

(14) Is the LVIS a threat to new car industry market share, or Australian motor vehicle manufacturing jobs in the past, present or future; if so, will he provide figures to support that contention.

(1) The number of vehicles allowed to enter under the Low Volume Compliance Plate Approval (LV-CPA) Scheme were as follows:

(2) In 1970, concessions were introduced for low-volume manufacturers to facilitate the supply of low-volume production vehicles by Australian based specialist manufacturers. Certain concessions were granted from the safety requirements of the Australian Design Rules (ADRs). These concessions were made on the premise that such vehicles in limited numbers have minimal impact on national safety and environmental objectives and the local automotive market. Over time, the concessions were extended to imported vehicles of a specialised nature.

In 1989 the Motor Vehicle Standards Act (MVSA) was enacted, incorporating the LV-CPA Scheme, to establish and apply national uniform standards for motor vehicle safety, gaseous and noise emissions and anti theft devices. Eligibility for PMV imports under this scheme was pared back in 1995 to more closely align with specialist and enthusiast interests.

(3) There are generous transitional provisions to help affected businesses. For instance, all approvals issued under the previous LV-CPA Scheme will remain valid for two years. Applications lodged before the SEVS decision which can be supported by evidence of prior substantial financial commitment, will be assessed under the criteria of the previous scheme. The new registered workshop regime will be implemented next year in consultation with interested parties. In addition, the annual cap for passenger motor vehicles has been increased from 25 to 100 to enhance the viability of small operators. The Government believes that affected businesses will have ample opportunity to adjust to the new SEVS arrangements.

(4) The introduction of the SEVS (for new and used vehicles) will ensure that there is fair competition between SEVS participants and full-volume vehicle suppliers who must meet more stringent regulatory requirements at higher costs. It will also provide the confidence for the local automotive manufacturing industry to proceed with the necessary investment to improve its competitiveness.

Unlike the previous scheme, full-volume vehicle suppliers may participate in the SEVS. However, a vehicle model cannot be introduced under the SEVS and full-volume arrangements simultaneously.

(5) The Department of Transport and Regional Services advises that there were 78 full volume motor vehicle importers in Australia in 1999. According to industry (VFACTS) sales statistics, there were around 500,000 new imported motor vehicles sold in Australia in 1999.

(6) Currently, there are 1,210 LV-CPA holders with 2,100 compliance plate approvals in aggregate. In 1999, there were 14,437 vehicles allowed to enter under the LV-CPA Scheme.

(7) Statistics on the number of used vehicle transactions in Australia are not readily available. According to VFACTS data, new motor vehicle sales were as follows between 1993 and 1999.

(8) The Automotive Competitiveness and Investment Scheme (ACIS), will commence operating on 1 January 2001 and conclude on 31 December 2005. ACIS is directed towards encouraging new investment and innovation in the Australian automotive manufacturing industry to increase its global competitiveness in the context of trade liberalisation.

Eligible participants will include Australian based motor vehicle producers and original equipment suppliers of automotive components, automotive machine tools and tooling and services used in automotive manufacture such as design and engineering. There are over 200 firms in Australia involved in motor vehicle related manufacture. The number of firms participating in ACIS will become known once it has commenced operating on 1 January 2001.

(9) Under the new SEVS arrangements, concessions will enable the trade in used vehicles to continue. The new scheme has a clear focus on facilitating the supply of genuine specialist and enthusiast vehicles. On the basis of a preliminary assessment of applications under the previous scheme against the new SEVS criteria, some 140 vehicle models, including several diesel-powered 4WDs, will be eligible under the SEVS. With the generous transitional provisions, the Government believes that if affected companies choose to take advantage of opportunities available under the new scheme there will be no job losses resulting directly from the introduction of the SEVS.

(10) The number of vehicles supplied will be determined by market forces.

(11) The low volume arrangements have provided some opportunities for access to vehicles that, for whatever reasons, have not been supplied in full volume. Vehicle models that are not supplied in full volume, and that meet specialist and enthusiast criteria, will be eligible for concessional entry under the SEVS.

(12) Legislative amendments are normally accompanied by a regulation impact statement.

(13) The impacts on business were considered in a public review of the MVSA. The review was advertised nationally, and some 3,000 identified stakeholders were invited to provide input. Fifty five formal submissions were received by the review taskforce. Meetings were held around the country with stakeholders, including those who did not lodge a submission, to ensure that the widest possible spread of stakeholder views were obtained. Prior to the Government's response to the review there was also extensive consultation with the key stakeholders. The Office of Regulation Review was consulted during the preparation of a regulation impact statement. This statement formed part of the Government's deliberation process.

(14) Large numbers of concessional used vehicle imports can have an impact on the mainstream motor trade, and erode the national safety and environmental objectives of the MVSA.

The recent high growth in concessional entries of used vehicles has created a competitive imbalance between firms importing vehicles under the LV-CPA Scheme and those supplying vehicles (whether locally produced or imported) under normal arrangements, reducing investor confidence in the Australian automotive industry. Imports allowed under the LV-CPA Scheme grew by 86.4 per cent, from 7,858 to 14,437 vehicles between 1998 and 1999. Over the same period, sales of new motor vehicles fell by 2.6 per cent, from 807,700 to 786,900 vehicles.