MOTOR VEHICLE STANDARDS ACT 1989
Vehicle Standard (Australian Design Rule 81/02 —
Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 2
E X P L A N A T O R Y S T A T E M E N T
Issued by the authority of the Minister for Infrastructure,
Transport, Regional Development and Local Government
September 2008
1. Legislative Context for ADR 81/02
Vehicle Standard (Australian Design Rule 81/02 – Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 2 is made under the Motor Vehicle Standards Act 1989 (the Act). The Act enables the Australian Government to establish nationally uniform standards for road vehicles when they are first supplied to the market in Australia. The Act applies to such vehicles whether they are manufactured in Australia or are imported as new or second hand vehicles.
The making of the vehicle standards necessary for the Act's effective operation is provided for in section 7 which empowers the Minister to "determine vehicle standards for road vehicles or vehicle components".
2. Content and Effect of ADR 81/02 Amendment 2
ADR81/02 prescribes the requirements for the measurement of vehicle fuel consumption and carbon dioxide (CO2) emissions, and the design and application of fuel consumption labels to vehicles.
Schedule 1 of Amendment 2 amends ADR81/02 to allow for printing tolerances when printing large numbers of labels.
3. Consultation Arrangements
3.1 General Arrangements
It has been longstanding practice to consult widely on proposed new or amended vehicle standards. For many years there has been active collaboration between the Australian and the State/Territory Governments, as well as consultation with industry and consumer groups. Much of the consultation takes place within institutional arrangements established for this purpose. The analysis and documentation prepared in a particular case, and the bodies consulted, depend on the degree of impact the new or amended standard is expected to have on industry or road users.
A Memorandum of Understanding (MOU) between the National Transport Commission (NTC) and the National Environment Protection Council (NEPC) sets out the consultative arrangements governing the development of vehicle emissions and noise standards and other vehicle/environmental issues. NEPC has since been renamed the Environment Protection and Heritage Council (EPHC). The MOU established the Land Transport Environment Committee (LTEC) (consisting of four representatives each from transport and environment agencies), to undertake an agreed work program consistent with the MOU.
Depending on the nature of the proposed changes, consultation may involve the Transport Emissions Liaison Group (TELG), Transport Agencies Chief Executives (TACE), the EPHC and the Australian Transport Council (ATC).
TELG is the main consultative group that supports LTEC. It contains representatives of:
transport and environment agencies ;
the manufacturing arms of the vehicle and fuels industry (including the Federal Chamber of Automotive Industries, the Truck Industry Council and the Australian Institute of Petroleum);
road user organisations (the Australian Automobile Association and the Australian Trucking Association); and
the National Environment Consultative Forum.
TACE consists of the chief executives of national and State/Territory departments of transport and road vehicle administrations.
ATC consists of the Commonwealth, State/Territory and New Zealand Ministers with responsibility for transport issues. EPHC consists of Commonwealth and State/Territory Ministers with responsibility for environment issues.
New standards, or significant changes that increase the stringency of existing standards, are subject to consideration by ATC Ministers. Unless disapproved by a majority of ATC Ministers, the Minister for Infrastructure, Transport, Regional Development and Local Government can then determine the new or amended standards. Proposals that are regarded as significant need to be supported by a Regulation Impact Statement meeting the requirements of the Office of Best Practice Regulation.
In November 2005, ATC agreed to streamlined arrangements for processing ADRs which removed the need for a formal ATC vote where the ADR proposals are non‑controversial and harmonised with international regulations.
3.2 Specific Arrangements for this ADR
This is a minor administrative change requested by the label printing industry. It does not change the intent of the vehicle standard and is supported by the Federal Chamber of Automotive Industries.
Overview
The Motor Vehicle Standards Act 1989 was enacted to establish uniform standards for road vehicles supplied to the Australian market, whether manufactured domestically or imported. The Act aims to ensure safety, performance, and environmental compliance of vehicles. The Australian Government, through the Minister for Infrastructure, Transport, Regional Development and Local Government, has the authority to determine these vehicle standards under Section 7 of the Act. In 2008, an amendment was introduced to Australian Design Rule 81/02 (ADR 81/02) through the Vehicle Standard (Australian Design Rule 81/02 – Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 2. This amendment addresses the need for printing tolerances when producing fuel consumption labels in large quantities, ensuring practicality and consistency in label production without altering the core intent of the standard. This change was supported by industry stakeholders, including the Federal Chamber of Automotive Industries. The amendment process involved extensive consultation with various government bodies and industry groups to ensure the proposed changes were practical and aligned with broader regulatory goals.
Scope and Application
The Motor Vehicle Standards Act 1989 applies to all road vehicles supplied to the market in Australia, irrespective of whether they are manufactured domestically or imported. This includes new and second-hand vehicles, and it ensures that such vehicles meet nationally uniform standards. The Act empowers the Minister for Infrastructure, Transport, Regional Development and Local Government to determine vehicle standards, including those outlined in the Australian Design Rules (ADRs). The Vehicle Standard (Australian Design Rule 81/02 – Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 2, made under this Act, specifically addresses the measurement of vehicle fuel consumption and carbon dioxide emissions, as well as the design and application of fuel consumption labels to vehicles. This amendment allows for printing tolerances when printing large numbers of labels, thereby providing flexibility to the industry while maintaining the integrity of the labelling requirements. The amendment does not alter the fundamental intent of the vehicle standard but responds to practical concerns raised by the label printing industry. The Act's jurisdictional reach is national, with consultation involving various government bodies and industry stakeholders to ensure that the standards are practical, effective, and broadly supported.
Key Provisions
The key provisions of the Motor Vehicle Standards Act 1989, as amended by the Vehicle Standard (Australian Design Rule 81/02 — Fuel Consumption Labelling for Light Vehicles) 2008 Amendment 2, are primarily outlined in section 7 of the Act. This section empowers the Minister to determine vehicle standards for road vehicles or vehicle components. Specifically, the Amendment 2 to ADR 81/02 pertains to the requirements for measuring vehicle fuel consumption and carbon dioxide (CO2) emissions, as well as the design and application of fuel consumption labels on vehicles. Schedule 1 of this Amendment 2 introduces printing tolerances for labels when they are printed in large numbers, which is a minor administrative change.
The obligations imposed by the Act on the relevant parties primarily involve compliance with the standards set forth in ADR 81/02 and its amendments. Manufacturers of light vehicles must ensure that these vehicles comply with the fuel consumption and CO2 emission measurements and that the appropriate fuel consumption labels are correctly applied. The Act also requires these manufacturers to adhere to the printing tolerances specified in the Amendment 2, allowing for minor variations in label printing. This ensures that the labelling process remains practical and cost-effective without compromising the accuracy and integrity of the fuel consumption information provided to consumers.
In terms of legal consequences for non-compliance, the Motor Vehicle Standards Act 1989 includes provisions that outline both civil and criminal penalties. The precise penalties for breaches can vary, but the Act provides for significant fines and, in some cases, imprisonment. For instance, failure to comply with the vehicle standards can result in penalties that are substantial enough to deter non-compliance. The exact penalties are not specified in the Explanatory Statement but are typically detailed in the Act itself. The enforcement of these penalties ensures that manufacturers and importers adhere to the standards, thereby protecting consumer interests and maintaining the integrity of the vehicle market.