MOTOR VEHICLE STANDARDS ACT 1989

VEHICLE STANDARDS
DETERMINATION NO. 1 OF 2005 REPEAL OF ADR 17/00

Determination of Vehicle Standards for Road Vehicles

under section 7 of the Motor Vehicle Standards Act 1989

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 Transport and

Regional Services

July 2005

CONTENTS

 page

A1. ROLE AND FUNCTIONS OF THE MOTOR VEHICLE STANDARDS ACT 1989

The Motor Vehicle Standards Act 1989 (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 main objects of the Act are:

“(a) to achieve uniform vehicle standards to apply to new vehicles when they begin to be used in transport in Australia;

and

(b) to regulate the first supply to the market of used imported vehicles”

Section 5 of the Act makes it clear that "road vehicles" include both road motor vehicles and trailers.  "Road motor vehicles" includes vehicles "permitted to be used on public roads" as well as those "designed solely or principally for transport on public roads" but does not include vehicles running on tracks or vehicles which are human or animal powered.

The functions of the Act are, in essence, to provide for:

(a) the making of vehicle standards;

(b) the application of those standards; and

(c)          the enforcement of the standards where necessary.

A2. ROLE AND FUNCTIONS OF THE ACT IN RELATION TO VEHICLE STANDARDS

The making of the vehicle standards necessary for the Act's effective operation is provided for in section 7.  The section empowers the Minister to determine vehicle standards for both road vehicles and vehicle components.  Determinations are disallowable instruments.

All the vehicle standards determined under section 7 of the Act have to this point been known as Australian Design Rules (ADRs).

The vehicle standards so determined are kept under review by the Department of Transport and Regional Services, in consultation with other agencies and interests.

The Act also contains a range of provisions which make the vehicle standards system effective.

A3. PROCESS FOR MAKING VEHICLE STANDARDS

Section 7 of the Act empowers the Minister to "determine vehicle standards for road vehicles or vehicle components", and provides that the Determinations are disallowable instruments for the purposes of section 46A of the Acts Interpretation Act 1901.

The process for the making of vehicle standards has three broad components.  These components are:

(a) settling the technical content of a proposed new or amended vehicle standard;

(b) determining the proposed standard as a vehicle standard; and

(c) scrutiny by the Parliament of the new and amended vehicle standards.

The major steps in the first of these components or stages (i.e. the settling of the technical content of a proposed new or amended standard) are:

(a) consulting with regulatory authorities including the National Transport Commission (NTC), the industry and vehicle users;

(b) examining relevant international standards (particularly those published by the International Organisation for Standardization (ISO), the United Nations Economic Commission for Europe (UNECE) and the International Electrotechnical Commission (IEC) in the interests of harmonisation; and

(c) in the case of new or significantly amended standards, consideration by the Australian Transport Council (ATC) of a formal proposal put forward by the NTC.

The major steps in the second of these components (i.e. determining a proposed standard as a vehicle standard) are:

(a) determination of the new standards by the Minister; and

(b) notification of the Determination in the Gazette.

The major steps in the third of these components (ie Parliamentary scrutiny) are:

(a) tabling in each Chamber of the Parliament; and

(b) scrutiny by the Senate Standing Committee on Regulations and Ordinances.

A4. CONSULTATION 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 currently undertaken takes place within institutional arrangements established for this purpose.  Depending on the circumstances of particular cases, there can also be supplementary consultation tailor-made to the requirements of a particular instance.

To some extent, 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.  Both industry and consumers are consulted in this regard.

Depending on the nature of the proposed changes, consultation could involve the Technical Liaison Group (TLG), Transport Agencies Chief Executives (TACE), and the ATC.

TLG consists of representatives of government (Australian and State/Territory), the manufacturing and operational arms of the industry (including organisations such as the Federal Chamber of Automotive Industries and the Australian Trucking Association) and of representative organisations of consumers and road users (particularly through the Australian Automobile Association).

TACE consists of the chief executives of Australian and State/Territory departments of transport and road vehicle administrations.

ATC consists of the Australian, State/Territory and New Zealand Ministers with responsibility for transport issues.

Editorial changes and changes to correct errors are settled by agreement between the Department of Transport and Regional Services and the National Transport Commission.  This process is only invoked where the amendments do not vary the intent of the vehicle standard.

Significant changes that increase the stringency of the rules, introduce new rules or repeal existing rules are submitted to TACE before seeking a vote by ATC.  Unless disapproved by a simple majority of ATC Ministers, the Minister for Local Government, Territories and Roads can then determine the amendment, under the authority of the Minister for Transport and Regional Services.  Proposals that are regarded as significant need to be supported by a Regulation Impact Statement (RIS) meeting the requirements of the Office of Regulation Review as published in A Guide to Regulation.

The changes to vehicle standards dealt with in this determination are regarded as significant and have been subject to full consultation and the RIS is attached.

The ATC voted to approve the proposal to repeal ADR 17/00 – Fuel System in May 2005 by a majority of 6 to 1 out of a possible 9 votes.  Two jurisdictions did not vote but since the required simple majority was obtained, the National Transport Commission was able to recommend the repeal of ADR 17/00.

B1. CONTENT AND EFFECT OF THE DETERMINATION

This Determination repeals the vehicle standard known as ADR 17/00 – Fuel System.  A brief description of the changes to the vehicle standards is included at part B2 of this statement.

B1.1 TIMING OF INTRODUCTION OF CHANGES

The Determination as a whole came into force on the date of gazettal.

B1.2 PROVISIONS OF THE DETERMINATION

Clause 1 sets out the Determination's short title and provides for its citation.

Clause 2 specifies the date of entry into force of the Determination as a whole.

Clause 3 sets out the meanings of key terms used in the Determination and the explanatory notes.  It also describes the status of clause headings and explanatory notes.

Clause 4 repeals the vehicle standard known as ADR 17/00 as outlined in section B2 below. 

Clause 5 is a standard provision confirming that vehicles which met the vehicle standards applicable when they were manufactured do not become non standard by virtue of these changes to the standards.

B1.3 NOTES TO THE DETERMINATION

The notes annexed to the Determination:

(a) identify terms used in the Determination or appended notes which have meanings specified in the Act;

(b) explain terms used in the appended notes but not otherwise defined;

(c) provide information on the availability of Determinations;

(d) explain the structure of the composite volume of vehicle standards and the standing of each of its parts;

(e) explain where copies of current and previous vehicle standards, and of the composite volume of vehicle standards, can be inspected; and

(f) explain how, and from where, copies of current and previous vehicle standards, and of the composite volume of vehicle standards, can be purchased.

B2. SUMMARY OF CHANGES TO THE VEHICLE STANDARDS

This determination repeals the Vehicle Standard known as ADR 17/00 Fuel System. The attached RIS notes that the ADR was introduced at a time when significant numbers of heavy commercial vehicles used petrol for fuel whereas the current practice to use diesel.  The RIS also points out that there is no comparable international regulation adopted by the United Nations Economic Commission for Europe (UNECE) and while the United States of America (USA) has a similar standard, other countries including the European Union (EU) do not.  This casts considerable doubt over whether fuel system regulation along the lines of ADR 17 is warranted.  Furthermore, it is not evident from the road safety statistics that the ADR contributes to reducing the risk of fire in the event of an accident.

INTRODUCTION TO THE REGULATION IMPACT STATEMENT

As indicated in part A4 of this Explanatory Statement, a Regulation Impact Statement (RIS) is normally prepared as part of the consultative process to support significant new or amended rules.

The attached RIS was prepared as part of the current review of the ADRs being undertaken to ensure they remain relevant, cost effective and do not constitute barriers to the importation of safe vehicles and components.  The Office of Regulation Review has approved the RIS as satisfying the Australian Government’s requirements for regulation impact statements, as set out in the Australian Government publication A Guide to Regulation.