WA regulators should have greater inspection and enforcement powers over motor vehicle dealers and repairers, the Insurance Council of Australia (ICA) has told an inquiry by the state’s Department of Commerce.

ICA says the department investigated 600 matters relating to repairers in 2011/12, with prosecution approved in 2% of cases and infringement notices imposed in 1% of cases.

In 45% of cases no action was taken due to issues such as insufficient evidence or no offence being found.

ICA says if the department had greater powers it could improve the figures, and inspectors could issue rectification orders.

WA is reviewing laws applying to motor vehicle dealers and repairers, which affect about 380 businesses.

The council says removing all licensing requirements would pose a risk to consumers, most of whom find it difficult to assess the quality of repairs.

“Continued repairer licensing will enhance the consistency of… skills, equipment, technology and expertise within the WA smash repair industry,” it says.

ICA argues classes of repair work such as light passenger, commercial and heavy transport should be retained rather than amalgamated, because vehicles are increasing in technical complexity.