2015-10-19
Senator RICE: In the light of the Volkswagen recall and the situation with the defeat device, is the department or the government considering the need for independent testing here in Australia?
Ms Zielke: At this stage we are investigating the current situation with Volkswagen, asking them for testing. I mentioned earlier that we do engage internationally with mutual recognition arrangements. For the vehicles that are involved in this situation, the original testing was done in Europe. Generally it would be the case that Volkswagen would undertake that testing again in Europe and that we would then recognise, through mutual recognition, the test results that they have done.
Senator RICE: It would again be done by Volkswagen. Is there consideration of having independent testing so that it is not the manufacturers who are commissioning the tests?
Ms Zielke: It should be noted that Volkswagen do not just go and do testing and then give the results. They are undertaken independently. They are undertaken with people from the regulators at the tests—they are independently involved—and in an independent laboratory. So they are independent tests being undertaken in Europe. We have a mutual recognition arrangement in place that sees the results of such tests being accepted by other countries, including us. In the same way, they accept our tests. There is therefore a question whether it is necessary to do more testing, given that it is independent.
Senator RICE: You mentioned before having discussions about different tests, on-road tests. What consideration is there to having those, whether they are done in Australia or are mutually recognised tests?
Ms Zielke: At the moment the German regulator is in discussions with Volkswagen. We are working with the German regulator to establish what actions they are taking. That will help us determine what actions we in turn take. The countries have worked together for some time to establish international standards for testing. It is appropriate that we continue with that arrangement to make sure we are all comfortable with the testing regime.
Senator RICE: Do you have any expectation of what the time span would be before Australian consumers could have confidence that the cars they are buying meet our standards?
Ms Zielke: At the moment, none of the impacted vehicles are on the market. They have been withdrawn from sale, so you cannot buy one of these vehicles in Australia. Volkswagen will not be able to recommence selling them until they have been approved afresh. Consumers therefore can have confidence that they are not buying a vehicle that is impacted by this. To answer your question: we do not have a time line in relation to when the fix will occur, but I would expect it to be within the next few months.
Senator RICE: We can have confidence with regard to Volkswagen vehicles, but there may be other brand vehicles for which, even without defeat devices, if their emissions were not determined by an on-road test, the onroad performance may not be up to scratch.
Ms Zielke: The compliance activities in relation to Volkswagen will be undertaken in their manufacturing plants as well as involving looking at their records. You may not be aware that Germany is undertaking an independent investigation into Volkswagen separately. In addition to that, they will be undertaking compliance activities in relation to those manufacturing plants.
Senator RICE: How can we be sure that Australians who have bought an affected Volkswagen are going to be able to exercise their rights to have it fixed?
Ms Zielke: That flows through the legislation governed by the ACCC. Our department has responsibility for the Motor Vehicle Standards Act as well. It is under those pieces of legislation that we will be able to act. Volkswagen and Audi Australia have certain obligations under that legislation. If they are in breach of those obligations, we can of course withdraw certain approvals if they do not act. However, to date they have been responding to all of our requests in as timely a fashion as they can. I appreciate that over the coming months consumers will want to see their vehicles rectified. At this stage, Volkswagen have advised that the software fix for their vehicles is not currently available. We will have a role in continuing to work with Volkswagen to ensure that is done as quickly as possible.
Senator RICE: So you can assure consumers that they will be able to have it rectified. If the rectification then means that their carbon emissions increase, which seems to be the likely outcome, what recourse would Australian consumers have about that if they deliberately bought those cars because of low carbon emission?
Ms Zielke: In the first instance, we will have concerns because they will be in breach. Therefore, their answer to this problem needs not only to rectify the software but it also needs to ensure that the vehicle can actually function under the standards in which it was supposed to actually operate—that is going to be our first area of interest. In relation to consumer law provisions, those questions would be best directed to the ACCC and would flow from any investigation that they take in relation to it. But if the car is rectified to the standard that the consumer believed they were purchasing then, as I understand it, that should address the issue.
Senator RICE: Thank you