The Insurance Council of Australia has backed continued regulation of the NSW tow truck industry, to improve safety and protect consumers.

In a submission to the Independent Pricing and Regulatory Tribunal on the recently released Transport Issues Paper, CEO Rob Whelan says price regulation ensures an ethical and sustainable industry.

It enables fast and efficient clearance of accident scenes and keeps fees in check.

“ICA supports appropriate red tape reduction and self-regulation where there are other adequate safeguards in place to protect consumers,” he says. “However, we submit that the tow truck licensing regime is required to minimise ongoing risk to consumers.”

The council believes enforcement of the Tow Truck Industry Act 1998 should be better publicised to act as a deterrent.

It says some repairers charge extra fees if customers want their cars moved and repaired elsewhere. ICA says this highlights a gap in legislation that must be addressed.