News

Industries

Companies

Jobs

Events

People

Video

Audio

Galleries

My Biz

Submit content

My Account

Advertise

Corporate & Commercial Law Opinion South Africa

Second-hand logic

I would like to extend my sincere thanks to whoever was involved in getting sanity to prevail with regard to the proposed ban on the sale of second-hand parts from deregistered vehicles in South Africa.

According to the National Department of Transport the potential negative implications of such a ban were taken into account, leading to the bill being removed from the proposed National Road Traffic Act regulations. The department has now issued an amendment that will allow for the resale of parts that are still in good working condition.

Other (slightly less controversial) proposed regulations due to come into effect at the end of the year include cars older than ten years having to be tested for roadworthiness every two years as well as the stricter regulation of driving instructors.

The intention of the second-hand part ban was to curb the theft of motor vehicles for parts and the resultant 'chop shops' in SA. However, in its original form, the proposed ban would have led to the closure of scrap yards, severe jobs losses and it would have prevented consumers from being able to access affordable second-hand parts - which would only escalate costs.

The South African Insurance Association (SAIA) consulted its members on the matter and noted that it would have had "severe unintended consequences for both the insurance industry and its customers." The SAIA has agreed that its code of motor vehicle salvage must be vigorously implemented to curb vehicle crime going forward.

Guilty until proven innocent

We all know too well that the level of crime in SA is unacceptable, but banning second-hand parts was never going to do anything but kill many legitimate businesses that are extremely professional, broad-based and range from informal communities to listed companies.

That said, I find it very curious and confusing that government law inspectors currently don't have the right to inspect second-hand business facilities - whatever the format - whenever necessary.

In my opinion, certain instances warrant the stance of 'guilty until proven innocent'. For example, anyone seen walking around with a manhole cover is surely considered highly suspicious.

I think any inspector who inspects a second-hand facility and finds copper cable, manhole covers or similar 'questionable' second-hand goods, should have the power to close the facility down immediately.

Such pro-active action would do far more to curb to scourge of vehicle-related crime than poorly thought out, heavy-handed legislation that would stifle honest business in SA.

About Chris Barry

Chris Barry is managing director of Heavy Commercial Vehicle Underwriting Managers.
Let's do Biz