Industry slams early ESC plan

Its plan to mandate ESC on vehicles from January 1, 2011, has been condemned by the car industry and leading motoring groups as unworkable and a waste of money.

The State is proposing to make ESC compulsory 10 months ahead of a Federal Government rollout for the safety feature. Carmakers and the Federal Chamber of Automotive Industries argue that the government's move will cost about 8000 new vehicles sales across the state and millions in lost stamp duty revenue. "There is no overall benefit to the community," an FCAI spokesman says.

Apart from the FCAI, the Victorian Automotive Chamber of Commerce also believes the Brumby Government's 'go-it-alone' strategy will result in confusion, inconsistencies and loopholes.

Last week Roads and Ports Minister, Tim Pallas announced that the Government would push ahead with its plan to mandate ESC. Pallas has exempted light commercial vehicles and will be able to exempt certain vehicles. The proposed legislation also exempts low volume high-performance grey imports and "specialist and enthusiasts' vehicles", which the FCAI argues are the vehicles most in need of ESC because they are popular with young, inexperienced drivers.

ESC, which adds about $1000 to the price of a car, will be rolled out in other States from November 1, 2011. At present many budget cars are not fitted with the feature and other brands offer it as a cost-extra option.

Mitsubishi Australia spokesperson, Lenore Fletcher, echoed the concerns of carmakers by saying that both the industry and buyers needed clarification on exemptions and how it will be applied. "There are so many variables and we need some clear idea of whether this will be phased in or an absolute from the introduction date," she says. Fletcher says manufacturers are bringing in the technology "as fast as they can".

The VACC's senior manager government and public affairs, David Russell says the chamber supports any initiative to improve vehicle safety and to reduce the road toll. "However, there are likely to be impacts on manufacturers, dealers and consumers," he says. Both the VACC and FCAI want clarification on what vehicles will be exempt.

The FCAI says the new law will require Victorian vehicles to be fitted with their own compliance label, or vehicle identification number, as well as the Australian Design Rule compliance label, at a cost of $5.80 per vehicle. All carmakers will also need to submit a list of VINs to VicRoads for approval.

The FCAI says the regulation will be redundant by November 1, 2013 when all vehicles must have ESC as standard. The Victorian proposal also has no sunset clause. Some models will be excluded from registration in Victoria even though they meet all relevant ADRs.