Mr. Speaker, I am tempted to start by commenting that the member just answered the Conservative member's question with a little bit of rhetoric. He did not mention the fact that he voted against the $12 billion for the secured credit facility that is needed so desperately right now for dealers, but I will not mention that to start.
Instead I will say that I am pleased to have the opportunity to discuss this important issue. The issue is a complex one. At hand is automotive repair and service. It involves a fair and competitive marketplace and the legitimate proprietary concerns of manufacturers, as well as the interests of consumers.
This bill attempts to legislate access to information for the repair and services of vehicles to independent automotive aftermarket on the same basis as franchised auto dealers. Essentially this would require the vehicle manufacturers to make information and tools for the repair of the vehicles they build available to vehicle owners and independent repair facilities.
Independent aftermarket service providers are asking for the same access to information, training, software and tools as provided to dealerships. As we know, new vehicles are increasingly equipped with computer control systems and onboard diagnostics, making software as or more important than parts in vehicle repairs.
These independent service providers claim that manufacturers provide more information to their dealerships, which they say threatens the long term competitiveness of the independents. On the other hand, many car makers believe they already share the necessary information and that legislating beyond this affects their dealer networks.
Dealers also have concerns about this issue. They believe that this information sharing will cut into revenues. In fact the Canadian Automobile Dealers Association, which represents some 3,500 dealers in Canada, opposes legislating on this issue.
In the middle, of course, are vehicle owners. Consumers want choice. They want competitive pricing, but they also want assurances that the work being done on their vehicles is done right.
According to data shared by automotive consultant Dennis DesRosiers, the average age of vehicles on the road in 2007 was 8.2 years. It is estimated that over the course of a vehicle's life it will accumulate about $14,000 in aftermarket repairs and service. That is a lot of repairs, service and revenue.
Of the 18 million vehicles on Canadian roads today, 59% are equipped with onboard computerized diagnostic systems. This percentage naturally is expected to increase as older vehicles are relegated to the auto graveyard. While new car owners tend to remain affiliated to their dealership, especially during the life of the warranty, this affiliation tends to weaken as time passes, and especially with second and third owners of a vehicle. Owners of older vehicles generally like to find the cheapest cost in repairing their vehicles.
This is what we are faced with. On the one hand, independent aftermarket service providers are demanding access to critical information and access to tools and training. Car makers believe they are already providing necessary information. Consumers want the choice and the best price, as well as the comfort of knowing that those servicing or repairing their vehicle have the best knowledge and tools at their disposal.
The automotive repair and services sector covers non-warranty automotive repair and service. It includes autobody and collision service. This work is performed at over 30,000 establishments located at either new car dealerships, independent garages, specialty shops, such as those dealing with transmissions, mufflers, glass, et cetera, and branded retail outlets like Canadian Tire and Wal-Mart. The total employment in this sector was about 220,000 in 2004, with more than half in the independent and specialty shop sector. This represents a sizable group and substantial employment.
The government is certainly very much aware of the aftermarket industry concerns and is engaged with stakeholders on the issue in an effort to ensure an efficient and competitive marketplace while protecting consumer interests.
According to a February 2006 study by DesRosiers Automotive Consultants for the Automotive Industries Association of Canada, of the 25 assemblers and importers operating in the Canadian market, 10 at that time permitted varying levels of access to this information from within Canada.
Car makers have made their own decisions about how they share their technical information. Selected special tools, including diagnostic scan tools, are also available for purchase by independent repair facilities from either the original manufacturers or from third party manufacturers or distributors of aftermarket tools to service most brands and models of vehicles that are beyond their warranty period.
However, there is no doubt the technology that goes into today's automobiles has become increasingly more sophisticated. There are highly specialized and specific tools that require technical training and diagnostic information, as well as the proprietary software from manufacturers, which their dealers are privy to.
These specialized resources do not come free or cheap. Dealerships make significant investments in necessary modern facilities, staff, specialized tools and training. Independents, who service a wide variety of vehicles, have not made the same level of investment, so there is a question of fairness when it comes to commitment and investment.
There are also a number of other issues with legislating that the information, tools and training be provided widely. These issues include safety and security concerns ranging from anti-theft access key codes getting into the wrong hands to the possibility of knock-off parts being manufactured and sold, especially safety equipment like airbags and brake parts.
Today consumers do have a choice, and mechanisms out there provide for a competitive marketplace. Could it be better? Absolutely. That is why the government is reviewing options that will take into consideration small business and consumer interests, as well as environmental interests and the legitimate proprietary rights of manufacturers.
Once such option is the voluntary approach. This approach would be industry-led and industry-based. It is an approach that is consistent with the National Automotive Trades Association, NATA, an association of provincial and local associations representing the automotive aftermarket and repair sector in B.C., Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia.
What the voluntary approach would do, other than keep government out of telling businesses how to run their business, would be to harmonize our approach with the approach taken in the United States. Mr. Speaker, as you know, our automotive industry is highly integrated with that in the U.S. This integration encourages standards, regulations and processes across Canada and the U.S. to be as consistent and complementary as possible.
NATA cites the U.S. National Automotive Service Task Force voluntary agreement as an example of how such a system can work effectively while safeguarding the concerns of assemblers. All automotive manufacturers voluntarily agree to provide all non-emissions-related repair information and diagnostic tools to any independent repair shop through an online portal with a non-profit volunteer task force created as the oversight body.
The bottom line is that we must ensure that consumers are protected, while allowing a free and competitive marketplace to operate.
Competition is about consumers. When competition is present, consumers have choices. In the end, the issues that we will have to address are whether the instruments used in this bill are the appropriate ones and whether legislation is the best way to approach the issue. The provisions in the bill related to the Competition Act may not be necessary and may create negative, unintended consequences. The changes to the Canadian Environmental Protection Act may fall outside the scope of this act.
As we all know, the auto industry overall is in the midst of an economic crisis, with some manufacturers fighting for their very survival. Auto dealerships are having trouble moving the inventories they have. While this industry treads water, trying to keep its head above the water, this bill, as well-intentioned as it may be, proposes to hit them with a binding regulatory burden.
The government continues to review options and to engage with stakeholders on this important issue. We need to look at the best possible solution for consumers while ensuring a fair, efficient and competitive marketplace.