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Farms & Farm Machinery #401

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News<br />

nue<br />

REPAIR<br />

Mods not so hot<br />

Modifications to farm equipment should not be treated in the same way as a farmer’s right to<br />

repair, the Tractor and <strong>Machinery</strong> Association of Australia says. By Anthony Wingard<br />

A round-table discussion between the National<br />

<strong>Farm</strong>ers’ Federation (NFF), the Tractor and<br />

<strong>Machinery</strong> Association of Australia (TMA) and<br />

other relevant parties will soon be underway as the<br />

agricultural sector aims to find a solution on farmers’<br />

and repairers’ right to repair.<br />

TMA executive director Gary Northover says<br />

the discussions will aim to achieve a ‘final position’<br />

between all parties, including concerns raised by<br />

the TMA on the matter.<br />

“We’ve begun the process of reaching out to the<br />

NFF, for instance, to develop a bit of a round-table<br />

working discussion around this so that we can<br />

hopefully develop some guidelines which might be<br />

applied to the standards and expectations that the<br />

market is looking for,” says Northover.<br />

“It’s certainly early days but it’s a path that both of<br />

us believe we wish to pursue. So, we look forward<br />

to working the NFF, the Productivity Commission<br />

and also the ACCC [Australian Competition and<br />

Consumer Commission] in just trying to get that<br />

balance right.”<br />

The discussions are set to take place following<br />

reports released by both the Productivity Commission<br />

and ACCC earlier this year, which investigated<br />

the growing number of barriers facing farmers<br />

wanting to repair their own equipment.<br />

Both reports highlighted several challenges<br />

for farmers wishing to complete their own<br />

maintenance themselves or through a thirdparty<br />

machinery repairer.<br />

The ACCC report also called for more<br />

independent competition in the repair market<br />

as well as alterations to the current warranties<br />

issued on agricultural machinery.<br />

In response, the TMA outlined its stance in a<br />

statement of principles that referred mainly to the<br />

need to differentiate between the rights of farmers<br />

or third-party repairers to repair machinery and<br />

their right to modify that machinery.<br />

Modification, as outlined in the TMA’s statement<br />

could refer to: resetting immobiliser systems;<br />

reprogramming electronic processing or engine<br />

control units; changing equipment or engine<br />

18 <strong><strong>Farm</strong>s</strong> & <strong>Farm</strong> <strong>Machinery</strong><br />

settings and downloading or accessing the source<br />

code of machines.<br />

Speaking to <strong><strong>Farm</strong>s</strong> & <strong>Farm</strong> <strong>Machinery</strong>, Northover<br />

says it was imperative to differentiate between<br />

the two.<br />

“We certainly recognise the issue of right to repair<br />

and we do support farmers’ ability to maintain and<br />

repair their own equipment,” he says.<br />

“There are a couple of key issues. One is the<br />

difference between the right to repair and the right<br />

to modify.<br />

“We’ve issued some statement of principles that<br />

we think is a starting point on that road to highlight<br />

the sort of things we think third party repairers<br />

ought to be able to do under the right to repair and<br />

the things that may fall under the right to modify.<br />

“That was part of our submission to the ACCC,<br />

but we felt that was a distinction that needed to<br />

be made.”<br />

In relation to the right to modify in the Australian<br />

agricultural machinery industry, however, the<br />

ACCC report explicitly states: “We have not received<br />

evidence indicating that this practice is widespread,<br />

or that it is a significant motivation for independent<br />

repairers.”<br />

That said, it did confirm some submissions had<br />

raised concerns about the increased possibility<br />

of software modification should independent<br />

repairers have access to diagnostic software and<br />

other technical data.<br />

That notion has been refuted by the TMA, which<br />

suggests the practice of modification by third-party<br />

repairers is in fact widespread and was the main<br />

reason why it objected to recommendations.<br />

“It is prevalent and we see many examples where<br />

engines are being chipped to perform beyond the<br />

stated capacity. If you look at what is happening<br />

elsewhere in the world as well, this is not just an<br />

isolated example,” says Northover.<br />

“Machines being chipped can mean they perform<br />

above their stated capacity, involving sometimes<br />

disengaging the environmental management<br />

equipment, [which] can lead to safety concerns as<br />

far as we are concerned.<br />

“So, while the ACCC might not have called out the<br />

right to modify as a risk as such, we know that it is.<br />

Our members are conscious of their obligations to<br />

ensure that machines are operated safely.”<br />

DEALER CONCERNS<br />

Northover also raised several other concerns<br />

relating to right to repair and right to modify, such<br />

as the level of training required to perform such<br />

maintenance.<br />

Currently, while specific training and experience<br />

varies between manufacturers, technicians are<br />

required to at least complete specific vocational<br />

TAFE courses that are available in many regions<br />

across the country. Bigger manufacturing brands<br />

also invest in factory-based training for the technicians<br />

as well as sophisticated training departments<br />

in dealerships.<br />

Northover says a shortage of technical labour<br />

in regions and the economic role of the dealer<br />

across the country should also be considered<br />

when discussing the right to repair.<br />

“Walking down the path to right to repair, we<br />

just want to make sure the industry understands<br />

the standards necessary to deliver the minimum<br />

quality of service and make sure the machines<br />

are performing satisfactorily and it doesn’t lead to<br />

knock-on consequences down the track,” he says.<br />

“When the third-party repairer isn’t up to the task,<br />

so to speak, the cost is then up to the customer.<br />

“I know some examples I have heard recently of<br />

only half of positions were advertised last year got<br />

filled and if you apply that across the industry, there<br />

is a distinct shortage of technical labour out there.<br />

“I think the thing to consider as part of all of this<br />

is the role the dealer plays. The dealer has invested<br />

a lot of money in developing their businesses.<br />

In many instances, they are probably the biggest<br />

employer in most of the regional towns that they<br />

are in.”<br />

The Productivity Commission is set to hand down<br />

its final report to the federal government by October<br />

29, including a number of recommendations for the<br />

future of agricultural machinery in Australia.

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