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Over the past year or so we've all heard a lot about the pros and cons of repairer licensing.
But while it is clear that bodyshops, insurers, work providers, consumer groups and trade bodies appear keen to adopt licensing, we do not have an agreed definition on what form it should take.
Until we do, the industry cannot hope to move from debate to action.
negotiating standards
In essence licensing is about meaningful minimum standards that meet the needs of all and will make a difference to the body repair industry and the public's perception of it.
In the long term I think the industry would benefit from a scheme that combines consumer protection with the adoption of minimum standards in health and safety practices, environmental legislation, technician qualifications, training, equipment and repair methods.
Ideally I'd like to see a scheme that embraces all of these elements and is supported by all the key groups. A licensed bodyshop should be a well equipped, fully compliant shop offering excellent repairs and providing high levels of customer service.
While I believe that licensing could work and would bring benefits to the whole industry, I am also sure that getting the major players to agree on those standards, and how they are policed and paid for, will not be easy. I also think that licensing needs to come from within the industry, rather than be imposed on us by government.
unregulated shops
The bodyshops want defined repair methods and agreed minimum standards together with legislative compliance and the opportunity to make decent profits. Many shops are concerned about unregulated bodyshops — specifically those that dispose of their waste illegally and are not fully compliant with all the H&S legislation.
The vocal bodyshops tend to be the large established businesses and many seem to want the level playing field that licensing would bring. Unsurprisingly they resent it when the non-compliant small operator is paid on the same basis as they are — and they hope that licensing would bring the recognition and rewards they deserve.
insurers: be realistic
Meanwhile, insurers and other work providers want the best of both worlds. They've always wanted streamlined efficient shops producing good quality repairs at the lowest possible cost and bodyshops have usually managed to give them what they want.
However, the licensing process is unlikely to be cheap and insurers will need to recognise that licensed bodyshops will not be able to deliver full legislative compliance, top quality repairs and excellent customer service on ever decreasing margins.
If licensing is to be introduced then insurers would have to accept that bodyshops could no longer meet the new financial demands on them while continuing to make a reasonable profit. Insurers will not be able to have the benefits of using a licensed shop without the responsibility of paying for any of it.
consumer groups
For the consumer groups the issue appears to be more straightforward. The National Consumer Council (NCC) and the Office of Fair Trading (OFT) want quality repairs backed up by good levels of customer service and I think they will achieve this with the excellent OFT Consumer Codes Approval Scheme. This scheme, which we strongly endorse, is gaining acceptance and MVRA is now working towards part two. I envisage that any licensing standard would automatically incorporate the OFT scheme.
To be successful, licensing must embrace and satisfy the diverse wants and needs of all the interested parties and I think the industry is ready to start developing a common platform.
Great steps are being taken already. The OFT scheme represents a significant move in the right direction and I hope it will be a unifying force for the industry and provide a starting point for moving forward with licensing. The MVRA is revisiting its standards and speaking to other key players about the implementation of national minimum standards for bodyshops.
Each group has a different agenda and for licensing to work all must buy into it and back it. Let's not forget the alternative: if we do not work together, licensing or some form of regulation may be imposed on us, and in a form that many of us may find unacceptable. We need to be committed to a positive outcome and prepared for negotiation and compromise.
If you are interested in working with MVRA and Mike Monaghan on this thorny issue, please contact him on 0870 458 3208.
- Mike Monaghan is the CEO of MVRA
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