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Will bureaucracy kill the trailer industry?


A proposal to change how trailer manufacturers gain Australian Design Rule (ADR) certification for their products could see the cost of trailers rise, according to the Australian Trucking Association (ATA).
 
A draft circular, released by the Department of Infrastructure, Transport, Regional Development and Local Government last week, has called for trailer manufacturers to share more information on the individual specifications of each trailer before they are granted ADR certification.
 
Under the current system, trailer manufacturers can get ADR type approval for trailers, meaning units can be approved before individual preferences requested by customers (such as brand of lights, suspension or axles) are installed.
 
However, under the changes, trailer manufactures would need to supply the compliance authority with more information before the unit is approved for use on the road.
 
ATA’s national manager policy David Coonan said the proposal has the potential to raise the cost of trailers.
 
“Currently, trailer manufacturers can get approval for a type specification. That means the manufacturer can share the cost of compliance amongst all the trailers of the type he is producing,” David said.
 
“Under the new rules, the ATA is concerned manufacturers will have to seek compliance for every individual change, meaning the costs of compliance will be much higher per unit produced.
 
“The change may also mean that many of the larger trailer makers will have to change the way they receive certification plates, moving from an in-house plate making process to an external, department approved, supplier of standard plates.
 
“At the end of the day, trailer manufacturers will have to pass the increase in costs onto their customers, which will see the trucking industry have to pay more for their units.”
 
David said that while the change was designed to ensure the paperwork regarding certification was up to standard, it would have the biggest impost on trailer manufacturers with good management systems.
 
“The problem with mandating such a tough reporting regime on trailer manufacturers is that it will have the most impact on operators who have already invested time and money into ensuring their compliance systems are up to standard,” David said.
 
“The ATA believes the proposed changes tar every manufacturer with the same brush. While the ATA supports any move to improve compliance, this proposal could punish those who are already doing the right thing.”
 
A copy of the circular can be downloaded here. To have your say on the proposed changes, email the department at Umesh.shamdasani@infrastructure.gov.au by 13 August or contact the ATA on 02 6253 6900.

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