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10 The Consumer

10.1 Information and advertising

10.1.1(c) Product testing (24 June 1991)

For the benefit of members, Automobile Clubs have a responsibility to carry out product testing, on appropriate automotive products.

10.1.2 Advertising (24 June 1991)

No Advertising activity should directly or indirectly encourage behaviour contrary to road safety principles and, in particular, should not distract drivers.

10.1.3 Testing devices for personal use (24 June 1991)

All personal breath alcohol concentration testing devices offered for sale should meet Australian Standards.

10.2 Supply and pricing of petrol

10.2.1(c) Operation of the Australian oil industry

RAC believes that a free and open competitive market for petroleum products best serves the interests of consumers.

Federal and State Governments should monitor the industry and relevant markets to ensure that the Government concerned has the information upon which to formulate effective policy.

Government legislation and policy should be directed towards ensuring that all sections of the oil industry in Australia (refining, wholesaling, distribution and retailing) operate in a transparent and competitive manner.

Governments should not legislate to control the industry or the market unless there is a clearly defined sustainable benefit to the consumer.

RAC Policy positions in support of policy 10.2.1(c)

  • Price cycles enable consumers to buy fuel at lower prices.  Legislation aimed at eliminating price cycles would not be supported.

  • The current legislation requiring service stations to hold their prices fixed for 24 hours provides a nett benefit to the consumer.  It is therefore supported.

  • The imposition of a maximum wholesale price for fuel has a high administration cost and could increase prices.  Therefore it is not supported.

  • The RAC would support the introduction of a terminal gate pricing system based on a set pricing formula that allows the terminal operator to determine the values similar to the Victorian system.

  • The State Government should monitor country prices and investigate excessive differences with a view to eliminating market deficiencies.

  • The RAC is concerned that the city country price gap is too large.  However retail price capping in the country will not solve the problem, and is likely to result in higher prices.  Therefore it is not supported.

  • The '50:50 rule' legislation of the State Government is ineffective and is not supported.

  • Sudden changes in price levels will severely disadvantage the motorist and the general community.  The Federal and State Governments should take action to ensure that Australia is protected as far as possible from sudden fuel price shocks.

  • WA fuel specifications, while desirable from an environmental viewpoint have given BP too much market power.  The RAC believes that the best approach to curb this power is to obtain agreement from BP to cap the premium charged for WA specification fuel.

10.2.1.1(c) Advocacy policy (28 May 2001)

The RAC will aim to correct public misconceptions as to the reasons for the current high fuel prices and their fluctuations.

The RAC will apply constant pressure on all participants in the supply chain to keep fuel prices as low as possible

The RAC will work to ensure the Federal and WA State governments act in the interests of WA motorists

10.2.2(C) Display of fuel prices (26 August 2002)

All retailing establishments should clearly indicate the retail prices of ULP, Diesel and LPG sold at that site.

10.2.3(c) Fuel price levels (28 October 2002)

Fuel price levels should reflect world market prices in a competitive environment.

10.3 Operating agreements

10.4 Medical

10.4.1 Personal medical ailments (24 June 1991)

Motorists subject to relevant medical ailments should be encouraged to carry identification detailing their ailments.

10.4.2 Drug labelling (24 June 1991)

Pharmaceutical companies, pharmacists and medical practitioners prescribing drugs must clearly indicate the effect of such drugs on driving, especially in conjunction with the consumption of alcohol.

10.4.3(c) Medical fitness to drive (22 July 1991)

Licensing Authorities should co-ordinate with Health/Medical Authorities to ensure the medical fitness of licensed motor vehicle users.

10.5 Insurance

10.5.1 Motor vehicle insurance (24 June 1991)

Although vehicle owners should not be compelled to insure themselves against liability for damage to property, as distinct from legal liability for death or injury, they should be encouraged to insure against third party property damage.

10.5.2(c) Compulsory third party (CTP) insurance (24 June 1991)

Governments should implement (if not already provided for) the following recommendations regarding compulsory third party insurance:

  • under the CTP Insurance schemes throughout Australia, any person, other than the driver, who is injured in a motor vehicle accident, and who can demonstrate the liability of the offender, should be entitled to the benefits of CTP insurance cover;

  • any defendant to an action for damages in respect of a motor vehicle accident should have the right to pay into court an amount of damages in satisfaction of a plaintiff's claim;

  • hearing of cases and assessment of damages should be left in the hands of a judge sitting alone;

  • within six months of an accident, insurers should be notified of intention to claim and authority for extension of time should be reserved for the Court's decision;

  • action in respect of a claim should be commenced within two years of the crash;

  • to enable equitable assessment of damages, CTP Legislation should include provision for the apportionment of liability for contributory negligence; and 

  • an examination should be made of the social implications and the cost to the community of lump sum or annuity payments.

10.5.3 No-fault insurance (24 June 1991)

When governments are planning to move from a Compulsory Third Party insurance system to a 'no fault' scheme, the following aspects should be considered:

  • the motorist should not have to accept a disproportionate share of the costs involved;

  • any no-fault scheme should retain the common law right of the motorist; in the case of a successful court action, any amount previously paid from or by a compensation scheme should be taken into account;

  • any no fault scheme should emphasis the necessity for prompt payments to injured persons and cost minimisation through the provision of rehabilitation services to assist the recovery of the injured person;

  • unless an appropriate contribution has been made to the funding of a no fault insurance scheme, the owner/driver of a vehicle involved in an accident should not be entitled to claim against the scheme;

  • any scheme to compensate road accident victims should have the following basic objectives - a reduction in the delay which presently exists between the date of injury and the date of receipt of compensation; and a reduction in the amount which is expended in the cost of litigation.

  • any periodic payments made by a compensation scheme should be indexed to keep them in line with cost of living increases;

  • the social injustice of some people not receiving compensation, eg. following single vehicle accidents, needs to be corrected, and

  • an examination should be made of the social implications and the cost to the community of lump sum or annuity payments.

States should not take unilateral action which may react adversely on the interests of motorists and the public generally.

10.5.4(c) Accountability for theft or damage (24 June 1991)

The RAC supports the introduction of new legislation, amendment to existing legislation or other Government action which will have the effect of increasing the accountability of guardians and parents of children under the age of 18, for loss or damage caused to property by those children.

10.6 Touring and travel

10.6.3 Clean and tidy roads (24 June 1991)

Road users should keep Australia's roads and related public places clean and tidy.

Steps to counter 'littering' should include:

  • educating road users to carry a 'litter bag' for the immediate storage of rubbish;

  • encouraging motels, hotels and service stations to provide rubbish bins for the disposal of litter;

  • requesting relevant State authorities to continue educational campaigns and actively implement anti-litter legislation;

  • encourage vehicle and accessory manufacturers to provide anti-litter devices and attachments; and

  • regular emptying of roadside bins by authorities.

10.6.4 Cleanliness of roadside facilities (24 June 1991)

The development of higher standards of cleanliness and sanitation in rest room facilities and other amenities available to the travelling public should be encouraged.

10.6.5 Accommodation houses (24 June 1991)

Proprietors of accommodation houses should be encouraged to make available literature containing information visitors may require to enhance their enjoyment of the establishment and of the area in which they are staying.

10.6.6 Formalities for visitors (24 June 1991)

The Federal Government should continue to review and simplify entry/exit formalities of visitors and their vehicles to Australia.

The Federal Government should improve and accelerate the availability of relevant statistical data.

10.6.7 Two-up coaches (24 June 1991)

The introduction of coaches using two drivers, commonly called two-up coaches, on long distance routes should be considered only if research demonstrates that there is no potential for increased involvement of these vehicles in road crashes.

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