FARMERS wanting to make a written submission to the South Australian Parliament’s inquiry into the contentious issue of machinery warranties – including those from other states - have until next week (30th October) to make a lodgement to its Economic and Finance Committee.
Labor MP for Light, Tony Piccolo, says the inquiry into the farm machinery industry had been established in response to complaints about the difficulties some farmers were having with respect to getting manufacturers to honour warranties.
But Australian farm machinery lobby group the Tractor and Machinery Association of Australia (TMA) says it is “surprised” the issue warrants a formal enquiry.
“Obviously, matters that we are not aware of will be raised,” executive director TMA Vin Delahunty said.
“There’s been no similar inquiry in my (working) lifetime and it’s a bit of a surprise this has come up.”
Mr Delahunty said this country’s farm machinery would be taking a keen interest in the outcome of the inquiry which should see the South Australian Parliament’s Economic and Finance Committee bring down its report on the issue by Christmas.
According to Mr Piccolo the Clerk of the House of Assembly has advised him submissions can be taken in confidence, also 'in-camera', even 'off-the-record', in a bid to head off any possible legal retribution by machinery companies.
He says he wants the inquiry to highlight two key issues, namely the cost of repairs and safety concerns.
Speaking in State Parliament, Mr Piccolo said one of his constituents had spent more on repairs to one machine than its original cost. As well, he raised the issue of downtime, and the economic ramifications associated with loss of earnings.
“My constituent has estimated that the cost to him through both the repairs to the machinery (the subject of an on-going complaint), and also the loss of productivity, is about $1 million,” Mr Piccolo said.
Another of his constituents reports that a machinery manufacturer has refused to take the necessary action to rectify an allegedly faulty piece of equipment, thereby putting lives at risk.
"Many farmers have clocked up huge legal costs in trying to have the matter addressed," Mr Piccolo said.
"Farmers often have to capitulate to the manufacturers because they cannot afford the legal bills."
Mr Piccolo says it’s not clear whether the problem lies with the manufacturer here in Australia, their parent company overseas, or individual machinery retailers.
He acknowledged that local dealers often were “the meat in the sandwich” by trying to provide service to their customers whilst not being supported by manufacturers.
Meanwhile, the chief executive officer of the South Australian Farmers Federation, Carol Vincent, said she was “surprised the TMA was surprised” about the need for State Parliament to investigate the issue of repairing machines under warranty.
“What we have found is that, for various reasons, there are a number of farmers buying machinery who are having difficulties getting warranties honoured,” Ms Vincent said.
“As well, there are farmers going to the legal profession for assistance and that’s not in the farmers’ interest or the manufacturers’ interest – because the only people who win in that situation are lawyers.”
SAAF currently is working towards establishing a special Mediation Group, comprising a SAFF lawyer, a machinery manufacturer representative, as well as SAFF’s chief executive officer, Ms Vincent.
*Submissions can be sent to: Executive Officer, Economic and Finance Committee, Parliament House, North Terrace, Adelaide, SA, 5000. Call (08) 8237 9223 or email efc.assembly@parliament.sa.gov.au with any questions.
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