Another set of guidelines for the smash repair industry has been released, recommending the abandonment of “funny time, funny money”.

As if last year’s Federal Government voluntary smash repairer code and NSW Government compulsory code weren’t enough, the Motor Trades Association of Australia (MTAA) will promote a “real time” guide to smash repairers and insurers.

Authorisation from the Australian Competition and Consumer Commission (ACCC) provides immunity from court action for conduct that might otherwise raise concerns about competition. It is granted when the ACCC is satisfied there will be a net public benefit.

The guide recommends ending the smash repairer practice of quoting more time for a job – with the knowledge of insurers – to compensate for a low hourly rate.

The Federal Government introduced the voluntary Vehicle Insurance and Repair Industry Code of Conduct in June last year after much consideration from insurers and the smash repair industry.

The MTAA application for authorisation follows on from a 2005 Productivity Commission inquiry into the relationship between the insurance and smash repair industries.

The MTAA says its guide was developed to reflect the true time taken to replace parts, and repair and paint damaged vehicles. A spokesman told Sunrise Exchange News the purpose of the guide is to help repairers prepare quotes in a “real time, real money” format.

“In MTAA’s view, this will introduce greater transparency in quoting arrangements. A ‘real time, real money’ quotation system is not covered by the code. Use of the guide will be a matter for individual repairers and insurers.”

ACCC Chairman Graeme Samuel says the proposal is likely to keep public detriment to a minimum.

“Smash repairers and insurers will be free to choose whether or not to develop or accept quotes based on the MTAA’s guide. Insurers are also likely to maintain a strong bargaining position under authorisation and should be in a position to constrain potential price rises.”

Mr Samuel says the guide has the potential to increase efficiency in the quoting process and may encourage competition between smash repairers.