Articles by John Rolfe

Australia's largest car insurer is charging drink-drivers less than customers whose cars are stolen or sideswiped by other motorists.

Fuel usage claims that are "wildly inaccurate" would be punished with fines of up to $50 million under a new legislative push.

Shine Lawyers have been contacted by five people who have reported airbags exploding with "excessive force" in a crash, leaving them with facial scars and bruising.Some spent weeks in hospital and others have been unable to return to work. Along with these claims, serious concerns have emerged about the effectiveness of Australia's recall process.The number of suspect cars rose to 168,000 last year, then 400,000 last month and now 850,000Toyota has only managed to examine and, where needed fix, just 29 per cent of 1700 Corollas and Avensis Versos red-flagged in April, 2013, when the number of cars considered at risk was 12,000 and there was no parts shortage.The number of suspect cars rose to 168,000 last year, then 400,000 last month and now 850,000 across major brands.Around the world, 54 million vehicles are affected and the airbag maker, Takata, can no longer produce replacements quickly enough.By Christmas, Toyota hopes to have one-third of the stock needed for recently recalled Yaris models.And the Takata airbag recall is not alone in failing to gain traction. Samsung triggered an official alert on 145,000 potentially deadly washing machines in 2013 but is yet to see more than 80,000 of them.Manufacturers should be treating this as a consumer safety emergencyA Toyota spokeswoman blamed customers for the response to the 2013 recall. It and other manufacturers sent letters to addresses believed to link to at-risk vehicles. "We are relying on customers to book in their cars (for checks)," she said.Car makers needed to do more to get customers into safer vehicles, either by forcing Takata to work faster or by providing loan cars, said Shine partner Rebecca Jancauskas and Senator Nick Xenophon, who has a record of campaigning for greater product safety and owns a recalled 2006 Toyota Yaris."Manufacturers should be treating this as a consumer safety emergency," Senator Xenophon said."Would car company executives want their family members to be driving in cars when there is a real chance of injury or death? That's the pub test."Shine's Ms Jancauskas said questions need to be asked about the testing of products before they hit the Australian market. Relying on information from car makers, the Department of Infrastructure, which includes transport, said there has been no report of injury due to defective airbags.A class action would likely target Takata and car makers.

Momentum is building for a national "lemon law" to help owners of dodgy cars, with a federal MP declaring support for increased protection.

Toowoomba drivers were paying less than metro motorists in July. They are now paying 21.1¢ a litre extra. And the consumer watchdog intends to find out why, using "compulsory information-gathering powers" for the first time to find evidence of anti-competitive behaviour.Research published yesterday by the ACCC proves drivers outside the mainland state capitals are being denied much of the 35¢-per-litre plunge in the wholesale cost of fuel since July last year.In Townsville, the differential has gone from just 2.1¢ a litre to 20.2¢ a litre.The average gap between regional and metropolitan prices widened from 5.7¢ a litre in mid 2014 to 17.6¢ a litre in December. That extra 12¢ costs owners of the nation's most popular car, the 50L Toyota Corolla, an extra $6 a tank, increasing the mark-up from about $3 per refill to $9.Nationally, the biggest difference seems to be in Toowoomba, where motorists have gone from paying less than the major-city average to 21.1¢ a litre more. In Townsville, the differential has gone from just 2.1¢ a litre to 20.2¢ a litre.ACCC chairman Rod Sims said price falls sometimes took a while to flow through to regional prices due to lower sales volumes. But the savings from the oil price slump should have materialised by now, he added."This is a hell of a lag," Mr Sims said , adding that the ACCC would do "micro studies" of prices in three unnamed regional centres using compulsory information-gathering powers recently activated by consumer and competition minister Bruce Billson. Those powers are a "bloody great spotlight", Mr Sims said.The ACCC would be hunting for evidence of cartel behaviour. The locations to be studied are not named because it would tip off Big Petrol. "Just the fact that we are looking will probably give the market a bit of a hurry up," Mr Sims said.Australian Automobile Association acting chief executive James Goodwin said: "This is welcome but, unfortunately, is long overdue."

The rule which dictates 60 per cent of all fuel sold at NSW service stations contain ethanol is hurting NSW motorists, the Australian Competition and Consumer Commission says."The ethanol mandate in NSW has had a significant impact on consumers," ACCC chairman Rod Sims said yesterday.The mandate has reduced choice because regular unleaded has been removed at many servos, he said, and some motorists who cannot - or choose not to - use ethanol petrol turn to premium unleaded, meaning they end up paying nearly 12c/L more than they would for regular unleaded.Premium unleaded sales in NSW have risen 124 per cent since the mandate was introduced in 2007. In the rest of the country there's been a 26 per cent increase. No other state or territory has an ethanol mandate.US Researchers and even NSW Treasury have previously called into question the benefit of the mandate.

Motorists may now be able to save 10c a litre on petrol by using a new online tool that advises drivers when to refuel.From today, people in mainland state capitals will be able to use the Australian Competition and Consumer Commission website to decide when they should fill up their tanks.This is the first time that the consumer watchdog has offered buying advice. "We are trying to be more helpful," chairman Rod Sims told CarsGuide. Drivers are currently paying as much as 10c a litre more than they should because of a failure to pass on at the bowser sharp recent falls in the wholesale fuel price.ACCC analysts will, wherever possible, recommend whether to buy or postpone buying fuel, allowing motorists to buy closer to the low point of the fuel price "cycle".The gap between the high and low of a price cycle can be as much as 20c a litre. "Even if you get it half right and save yourself 10c a litre, that's an enormous amount," Mr Sims said. The online tool covers only mainland state capitals because there is no price cycle elsewhere, he said. But the ACCC won't try to say where the cheapest fuel is.Mr Sims said that this was too difficult to do accurately, and on a given day the price difference between stations was typically only 2c a litre. Mr Sims explained the ACCC had no ability to control petrol prices but it was "monitoring" trends in bowser prices, particularly in rural areas, since the dramatic decline in the price of wholesale fuel."All we can do is comment on it, to put pressure on," Mr Sims said. The online tool is based on figures from Fueltrac, which are obtained mainly from sales recorded on fleet companies' petrol-purchasing cards.Until June, the ACCC had bought pricing data from Informed Sources, which runs MotorMouth, a website and mobile app that also offers advice to consumers on when and where to buy fuel. But in August the ACCC launched Federal Court action against Informed Sources, alleging that it and major petrol retailers had been sharing fuel pricing information in a way that substantially lessened competition.

Motorists are being ripped off to the tune of $5 a tank, delivering Big Oil a potential windfall of $30 million a week.Analysis by News Corp Australia reveals the margin on average national petrol prices is the highest since at least early 2010 - and possibly much longer. This is because the retail price is not dropping at the same pace as the wholesale price.News Corp Australia revealed on Saturday Melburnians had benefited more from lower world oil prices than motorists in other states.Australian Institute of Petroleum (AIP) figures reveal the gap between retail and wholesale prices of unleaded has been as much as 19c per litre in the past month, compared with a long-run average of 8-10c per litre.It means drivers of cars such as the Mazda6 have been forking over as much as $5.50 more a tank due to the extra margin.The Australian Competition and Consumer Commission has estimated that every 1c per litre extra motorists pay fattens fuel companies' profits by $190 million a year - about $3.6 million a week.This suggests that when the margin is 9c per litre more than the historical norm, the bottom-line benefit is $33 million a week.AIP data also shows the raw price of petrol - known as MOPS95 - has plunged 15c per litre since the end of September to less than 64c per litre. Yet the national average retail price has fallen just 1c per litre in that time.Were it not for a big drop in Melbourne, the national average would be up. In Victoria, the situation is not as bad - prices have fallen about 12c per litre. Melbourne has enjoyed a 14c per litre dive."Clearly the retailers are on notice to pass through the savings," said CommSec chief economist Craig James, who closely monitors petrol prices at a national level."If we don't get a fall ... there'll be questions asked." Another industry watcher, who asked not to be named, said: "Prices are not as low as they should be." The AIP data was published just before last week's 10 per cent dive in the price of Tapis oil. That slump could further expand the gap between wholesale and retail petrol prices.The ACCC has begun Federal Court action against most petrol retailers, alleging price co-ordination.

Road users in some parts of the country face fines more than five times the size elsewhere - for the same offence. And infringements that carry three-figure penalties in Australia are not even against the law in other comparable parts of the world.Inconsistent and over-the-top penalties are propelling government traffic fine income towards $2 billion annually, a News Corp Australia investigation has found. This has triggered calls for greater uniformity - and an end to "revenue-raising"."It's a hopeless joke," said Australian Automobile Association CEO Andrew McKellar, adding that "some of the offences that are still on the books really are anachronistic". Leaving the engine on or keys in the ignition were two examples. Are we just revenue raising or is there a serious purpose to the level of penalty that is on the statute? It's a very rich vein of revenue that some state governments have tapped into."For example, News Corp's investigation reveals that since 1998 the WA Government has not seen the need to put up the size of "penalty units" that underpin its system of fines. They remain $50. Yet Victoria has increased its penalty unit by more than 40 per cent since 2004, from $102 to $144.Sources in some state governments were alarmed to learn of the scale of fines being imposed elsewhere. Others expressed amazement at the very existence of some offences.State and territory governments expect to reap a combined $1843 million from road users this financial year, according to budget papers. That's equal to fining every Australian $80.It represents an increase of $61 million on 2012-13. The Victorian Government reaped $326 million from fines in 2004-05; it anticipates making nearly double that amount in 2013-14: $643 million. Victoria will raise more revenue than any other state - by far. A further increase of $25 million has been budgeted in for next financial year.NSW anticipates earning $488 million, up $6 million on last year, when revenue jumped 14 per cent "due to an increase in motor vehicle infringements", the current budget papers say. The government goes on to lament that "overall growth in motor vehicles fine revenue" will be limited by "improvements in driver behaviour". Next year the NSW Government expects to bring in $496 million.SA is budgeting for a 25 per cent increase in fine earnings from $100.6 million in 2012-13 to $125.8 million in 2013-14, courtesy of new speed cameras. Last financial year was poor, from a government revenue standpoint, because "changes in driver behaviour". A further $9.1 million is expected to flow into the coffers next financial year.Queensland is set to bring in $367 million this financial year, up $11 million on 2012-13. Tasmania is budgeting on a slight decline this financial year to $106.4 million before increasing $4.3 million in 2014-15.A FINE MESS* South Australians face a hit of $239 for stopping in an emergency stopping lane and NSW drivers could be stung $236. But in Queensland the penalty is just $44 and $50 in WA. It's not even an offence in British Columbia, Canada;* Fail to carry your licence in SA and you could be up for $175. Yet drivers in Queensland, Victoria and WA are given the chance to produce their licence later. In France the fine is just 11 euro ($16);* If you get out of your car but leave the key in the ignition in NSW and you may be liable for $101. But this is not even an offence in SA. Or New Zealand. Or British Columbia; and* Likewise, drivers in Auckland or Vancouver face no penalty for stopping in a mail zone or near a post box. Yet in Sydney, it's a $101 fine - and punishable in every corner of our country.Read full story atwww.news.com.au

New research by University of New England professor of macroeconomics Abbas Valadkhani has found a quarter of servos put up prices as soon as fuel gets cheap but make "no effort whatsoever'' to bring prices down when it's expensive compared to the long-term average.Professor Valadkhani told News Limited the findings could help the Australian Competition and Consumer Commission prove we are being exploited at the bowser. "This study shows the ACCC where it needs to go do its job,'' he said.The research, published in the latest edition of the leading international journal Energy Economics, analyses more than five years of data and finds that in 28 of 111 locations nationwide, "when prices are conspicuously above the equilibrium path, retailers sluggishly lower their prices but when prices are substantially below the equilibrium values, the adjustment speed is significantly faster''.Ten of the 28 are in Queensland: Brisbane Metro, Charters Towers, Emerald, Gladstone, Gold Coast, Goondiwindi, Longreach, Maryborough, Mt Isa and Roma. Eight of the 28 are in NSW: Broken Hill, Casino, Coffs Harbour, Cooma, Dubbo, Forster, Newcastle and Port Macquarie. Canberra Metro is also identified.Four of the 28 are in Victoria: Ararat, Benalla, Bendigo and Yarrawonga.Three of the 28 are in Tasmania: Burnie, Campbell Town and Hobart Metro.The only South Australian location among the 28 is Port Lincoln.The only location in the Northern Territory among the 28 is Tennant Creek.Read the full article at: theaustralian.com.au