Mr BYRNE (7:30 PM) —I would like to address a couple of issues, time permitting. One, in particular, is the accident repair industry. I have a long-running interest in the accident repair industry, due largely to the many difficulties independent panel shops have in dealing with insurance companies. Many of these shops struggle to survive unless they abide by all conditions placed on them by the insurance company, even if this is not in the best interests of the client.

The industry is characterised by 70 per cent of all work for accident repair shops coming from insurance companies. Clearly, this places enormous pressures on the relationship between the repairer and the various insurance companies in the industry. A bad relationship with an insurance company can virtually ensure the death of a shop. As well, there are only a few major players in the industry, so if your relationship is tainted with one then there exist few others to do business with. These relationships may break down for many reasons—not just poor workmanship, as many in the insurance industry would make you believe. In the instances that I have worked on, the opposite is true: good workmanship costs, and frequently an insurance company simply does not want to pay for it.

Currently, the accident repair division of the Victorian Automobile Chamber of Commerce is attempting to put together a code of practice with the insurance industry. Though it is intended that this will cover many facets of behaviour, there is one on which I wish to concentrate tonight, this being payment for insurance companies for accident repairs. We have all been told by the Prime Minister in this House many times that no-one would be worse off under the GST. When I talk to accident repair industry representatives they tell me that the introduction of the GST has severely affected their cash flow, and many have simply gone out of business. I can point to at least 20 different shops locally which have gone to the wall, their problem being the GST in combination with the enormous delays in payments from the insurance industry.

I have been provided with numerous examples of accident repair shops waiting between 90 and 120 days for a payment for insurance jobs. When you consider that the GST must be paid quarterly at least, if not monthly, it is simply unsustainable. Whilst the government places interest charges on late payment of the GST, small panel shops do not have the market power to do the same for insurers. This is where the government forgot to listen to its small business constituency.

A further problem for the industry is the special treatment accorded to the select repairer. These repairers tie their flag to the mast of a large insurance company and, in return, receive payment within 30 days. This is clearly discriminatory, and I believe that the ACCC is currently looking into it. I believe that what this highlights is that insurance companies have the ability to pay within 30 days but are instead holding onto the moneys of independent repairers. Sadly, this behaviour by the insurance industry has an adverse effect on suppliers to the industry as well. Having represented Holt for some time, this clearly impacts on many businesses in my electorate. Everyone in the industry is waiting for the insurance companies to fix up their act.

I would also like to talk about another little person who has been affected within my electorate—a person called Murray MacGregor, who has made a substantial contribution to his community. I have raised the issue of Murray MacGregor and what I call the `missing Order of Australia' in this House on a number of occasions. I have recently had the task of deciding whether or not to raise this with the Prime Minister—which I did—and, by inference, criticise the Order of Australia Council with respect to the case of Murray MacGregor. In the end, I did raise this issue with the Prime Minister, and I am awaiting his response.

What has happened in the past is that community agencies have applied for an Order of Australia for Mr MacGregor on a number of occasions and he has been rejected. But let me briefly summarise the qualities which I believe make Mr MacGregor a worthy recipient of the Order of Australia. They are that he spent the best part of 50 years volunteering in society, showing a long-term commitment to others. He has been recognised by local and state governments previously. He has a medal commendation from Telecom for outstanding service to the community and a priority vote of thanks awarded by the Queen for services to the St John's Ambulance; he was the City of Casey Citizen of the Year in 1998; he received the Commonwealth recognition award for senior Australians in 2000 and the City of Greater Dandenong Citizen of the Year award for a non-resident in 2000; he was a Council for the Ageing senior achiever in 2001; and he received a senior achiever Victorian state government Senior Citizen of the Year award. He has been made a life governor of the Royal Freemasons Homes and Vice President of the Royal Freemasons Homes. Furthermore, he has never said for a day that he is unable to do voluntary work.

He is renowned in the local police station as the person you can rely upon when no-one else is available. He has worked with the CFA, St John's Ambulance, the Scouts and the Masonic task force, and in cleaning up after the Ash Wednesday bushfires. In the court system he is a bail justice, an independent third person and a justice of the peace and, in the City of Casey, a community visitor. The problem with this individual is that he is obviously not high profile enough. He is not a leading sportsperson. But he is a person who is part of the glue in the fabric of our community. I think it is ridiculous that the Order of Australia has not been awarded to this particular individual and I think it sends a very poor signal to the community. (Time expired)