The Minister for Consumer and Employment Protection addresses concerns regarding the car rental industry, announcing a review to consider mandatory or voluntary codes of conduct, or full licensing, due to numerous complaints about unfair practices and complex contracts.

AnsweredQoN 532Legislative Assembly
Asked
19 March 2003
Portfolio
Consumer and Employment Protection

QuestionView source ↗

Will the minister please inform the House of the review of the car rental industry he announced yesterday? Mr J.C. KOBELKE

AnswerView source ↗

I thank the member for some notice of this question.  Obviously the member’s constituency in Albany regards tourism as an important industry; and, of course, the hire car industry is a part of that.  This review will come back to government with recommendations on whether we need mandatory or voluntary codes of conduct, or even full licensing.  A range of serious concerns have been raised regarding the car rental industry about people being charged for vehicle damage that is the liability of the hirer, the complexity of the contracts, vehicle inspection and damage assessment processes, and unreasonable, harsh and unfair terms and conditions. Consumer protection agencies across Australia received more than 600 complaints relating to car rental services in the past two years, about 50 per cent of which were from interstate and overseas visitors.  I will quickly give a couple of examples of those complaints.  A consumer was involved in an accident but was unaware of a clause in small print on the reverse side of the contract stating that single-vehicle accidents were not covered by insurance.  The consumer complained that the contract terms were complex and confusing and inadequately disclosed the insurance arrangement.  The vehicle repair costs, which are under dispute, were $12 000. Mr M.W. Trenorden:  Are you going to look at insurance contracts? Mr J.C. KOBELKE:  Yes.  This is the review that will consider whether we need to put in place mandatory or voluntary codes or further regulation into the current arrangement for car-hire contracts across Australia. Mr M.W. Trenorden:  I support the minister, but will you include a question specifically about insurance contracts? Mr J.C. KOBELKE:  Yes, that is clearly an area of concern.  We must examine the whole arrangement that is in place.  It is a vital industry about which there is a high level of complaint. Mr M.W. Trenorden:  Much needed, I suggest. Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.
Mr J.C. KOBELKE replied: I thank the member for some notice of this question.  Obviously the member’s constituency in Albany regards tourism as an important industry; and, of course, the hire car industry is a part of that.  This review will come back to government with recommendations on whether we need mandatory or voluntary codes of conduct, or even full licensing.  A range of serious concerns have been raised regarding the car rental industry about people being charged for vehicle damage that is the liability of the hirer, the complexity of the contracts, vehicle inspection and damage assessment processes, and unreasonable, harsh and unfair terms and conditions. Consumer protection agencies across Australia received more than 600 complaints relating to car rental services in the past two years, about 50 per cent of which were from interstate and overseas visitors.  I will quickly give a couple of examples of those complaints.  A consumer was involved in an accident but was unaware of a clause in small print on the reverse side of the contract stating that single-vehicle accidents were not covered by insurance.  The consumer complained that the contract terms were complex and confusing and inadequately disclosed the insurance arrangement.  The vehicle repair costs, which are under dispute, were $12 000. Mr M.W. Trenorden:  Are you going to look at insurance contracts? Mr J.C. KOBELKE:  Yes.  This is the review that will consider whether we need to put in place mandatory or voluntary codes or further regulation into the current arrangement for car-hire contracts across Australia. Mr M.W. Trenorden:  I support the minister, but will you include a question specifically about insurance contracts? Mr J.C. KOBELKE:  Yes, that is clearly an area of concern.  We must examine the whole arrangement that is in place.  It is a vital industry about which there is a high level of complaint. Mr M.W. Trenorden:  Much needed, I suggest. Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.
I thank the member for some notice of this question.  Obviously the member’s constituency in Albany regards tourism as an important industry; and, of course, the hire car industry is a part of that.  This review will come back to government with recommendations on whether we need mandatory or voluntary codes of conduct, or even full licensing.  A range of serious concerns have been raised regarding the car rental industry about people being charged for vehicle damage that is the liability of the hirer, the complexity of the contracts, vehicle inspection and damage assessment processes, and unreasonable, harsh and unfair terms and conditions. Consumer protection agencies across Australia received more than 600 complaints relating to car rental services in the past two years, about 50 per cent of which were from interstate and overseas visitors.  I will quickly give a couple of examples of those complaints.  A consumer was involved in an accident but was unaware of a clause in small print on the reverse side of the contract stating that single-vehicle accidents were not covered by insurance.  The consumer complained that the contract terms were complex and confusing and inadequately disclosed the insurance arrangement.  The vehicle repair costs, which are under dispute, were $12 000. Mr M.W. Trenorden:  Are you going to look at insurance contracts? Mr J.C. KOBELKE:  Yes.  This is the review that will consider whether we need to put in place mandatory or voluntary codes or further regulation into the current arrangement for car-hire contracts across Australia. Mr M.W. Trenorden:  I support the minister, but will you include a question specifically about insurance contracts? Mr J.C. KOBELKE:  Yes, that is clearly an area of concern.  We must examine the whole arrangement that is in place.  It is a vital industry about which there is a high level of complaint. Mr M.W. Trenorden:  Much needed, I suggest. Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.
Consumer protection agencies across Australia received more than 600 complaints relating to car rental services in the past two years, about 50 per cent of which were from interstate and overseas visitors.  I will quickly give a couple of examples of those complaints.  A consumer was involved in an accident but was unaware of a clause in small print on the reverse side of the contract stating that single-vehicle accidents were not covered by insurance.  The consumer complained that the contract terms were complex and confusing and inadequately disclosed the insurance arrangement.  The vehicle repair costs, which are under dispute, were $12 000. Mr M.W. Trenorden:  Are you going to look at insurance contracts? Mr J.C. KOBELKE:  Yes.  This is the review that will consider whether we need to put in place mandatory or voluntary codes or further regulation into the current arrangement for car-hire contracts across Australia. Mr M.W. Trenorden:  I support the minister, but will you include a question specifically about insurance contracts? Mr J.C. KOBELKE:  Yes, that is clearly an area of concern.  We must examine the whole arrangement that is in place.  It is a vital industry about which there is a high level of complaint. Mr M.W. Trenorden:  Much needed, I suggest. Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.
Mr M.W. Trenorden:  Are you going to look at insurance contracts? Mr J.C. KOBELKE:  Yes.  This is the review that will consider whether we need to put in place mandatory or voluntary codes or further regulation into the current arrangement for car-hire contracts across Australia. Mr M.W. Trenorden:  I support the minister, but will you include a question specifically about insurance contracts? Mr J.C. KOBELKE:  Yes, that is clearly an area of concern.  We must examine the whole arrangement that is in place.  It is a vital industry about which there is a high level of complaint. Mr M.W. Trenorden:  Much needed, I suggest. Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.
Mr J.C. KOBELKE:  Yes.  This is the review that will consider whether we need to put in place mandatory or voluntary codes or further regulation into the current arrangement for car-hire contracts across Australia. Mr M.W. Trenorden:  I support the minister, but will you include a question specifically about insurance contracts? Mr J.C. KOBELKE:  Yes, that is clearly an area of concern.  We must examine the whole arrangement that is in place.  It is a vital industry about which there is a high level of complaint. Mr M.W. Trenorden:  Much needed, I suggest. Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.
Mr M.W. Trenorden:  I support the minister, but will you include a question specifically about insurance contracts? Mr J.C. KOBELKE:  Yes, that is clearly an area of concern.  We must examine the whole arrangement that is in place.  It is a vital industry about which there is a high level of complaint. Mr M.W. Trenorden:  Much needed, I suggest. Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.
Mr J.C. KOBELKE:  Yes, that is clearly an area of concern.  We must examine the whole arrangement that is in place.  It is a vital industry about which there is a high level of complaint. Mr M.W. Trenorden:  Much needed, I suggest. Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.
Mr M.W. Trenorden:  Much needed, I suggest. Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.
Mr J.C. KOBELKE:  I do not want to take up more time of the House, but I draw the matter to the attention of members.  It is an issue in the community, and the extent to which members get involved in the review or advise their constituents of it will help the Government to bring forward a better package as soon as possible.

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