Douglas Cross

PRESS RELEASE – Released 10 September 2020

The Australian Car Wash Association Calls for Changes to Victorian COVID Restrictions

Car wash operators across Melbourne were dealt a savage blow with the State Government’s release of its Roadmap to Recovery on Sunday 6 September, 2020.

Already suffering massive losses from reduced road traffic during Stage 3 Restrictions, Melbourne’s car wash sites were forced to close when Stage 4 Restrictions were imposed. And, under the Roadmap restrictions announced last weekend, commercial car washes will remain closed until October 26, 2020.

“Our Victorian car wash sites have been doing it tough since restrictions commenced,” said Neil Fox President of the Australian Car Wash Association (ACWA).

“In March/April our members, who are mostly small family-owned business, reported wash numbers down by up to 90% in some locations.  It became even worse when forced to close during Stage 4 Restrictions” said Fox.  “The COVID-19 restrictions have placed these businesses, their families, and thousands of unskilled workers under financial stress from which some may never recover”.

The Australian Car Wash Association (ACWA) has made a submission to the Victorian Government Ministers to have Melbourne’s car wash sites open from September 29, 2020.

The car wash industry is significant. Across the country, more than 3,000 car wash sites have an economic impact of $527m and employ over 5,000 people.  And, Victoria leads the country with more wash locations than any other state.

The industry has its big players, including the major fuel companies.  However, it is predominantly a community of small business men and women who have invested heavily in equipment that can take years to produce a financial return.

The industry’s biggest frustration is that car washing ticks all the Government’s boxes for a sector that should be able to open when restrictions ease slightly on September 29:

1. Car washing has a low impact on community movement – Car washing is a vital product purchase for many however, most car wash customers purchase the product when engaged in another permitted activity; on the way to or from permitted work, whilst filling their car with petrol or on the way to the supermarket for food.
2. Automatic car washes in particular, provide a “click and collect” service – Customers remain in their vehicle, have no human contact whatsoever and with touch-free payment options available, there is almost no risk of COVID transmission.
3. Commercial car washes operate in the lowest possible risk environment – outdoors.

“The Victorian Government has indicated a desire to get COVID-safe businesses up and running as soon as possible.  Commercial car washing is an extraordinarily safe product purchase, particularly the automated drive-through services where drivers do not have to leave their cars” said Fox

“We will continue to work with the Government to deliver a sensible restart to the car wash industry and we believe at a minimum Melbourne’s Automatic car washes should be permitted to open from September 29 2020”.

 

ENDS

 

For further information and interview opportunities please contact

Doug Cross

Business Manager

Australian Car Wash Association

0499013376

Letter Sent to Members 8 September 2020

 

Dear ACWA Member

It gives me no pleasure to provide this update for Victorian members.

Over the course of our Victorian COVID-19 journey together ACWA has pointed out that some car wash operators have elected to open their sites within a “grey area” contained in the Chief Medical Officer’s Stage 4 Restricted Activity Directions.

Premier Andrews has now confirmed in two television press conferences that the Government’s intention of Stage 4 Restrictions is less about reducing the risk of contracting COVID at a business and, more about reducing movement of the population to stop community transmission. They want to give people as few excuses to leave their home as possible, and to achieve this, they need as many businesses closed as possible.

To this end, in the short time since the Andrews’ Government’s Road Map to Recovery announcement on Sunday, it has become apparent that DHHS has become much more proactive in making contact with businesses they believe are operating in contravention of the Chief Medical Officer’s Stage 4 Restrictions.

ACWA is now aware that the DHHS, via their COVID-19 Enforcement and Compliance Inspectors, have been in contact with at least two Melbourne sites and ordered the car washes be closed. Through these contacts with DHHS inspectors, ACWA has been made aware of a specific reference to car washing on the DHHS website.

It is located in the Q and A section of the DHHS site, and states:

Can a car wash in metropolitan Melbourne still operate? 

Car washes, including those operating as part of petrol stations, must cease under Stage 4 restrictions.   

ACWA does not know when this information was placed on the website and the DHHS when contacted, were not able to confirm a date. For those interested, the specific instruction can be found here https://www.dhhs.vic.gov.au/shopping-retail-and-personal-services-metropolitan-melbourne-covid-19#can-a-car-wash-in-metropolitan-melbourne-still-operatenbsp

The unfortunate situation for car washing in Metropolitan Melbourne is now clear, and car wash sites must be closed.

Importantly, if there is an upside to the “grey area” being closed, it is that ACWA can now take a vastly more proactive lobbying role without placing members who were continuing to operate in jeopardy.

Following our emergency Board Member Meeting this morning and, as previously advised, ACWA has been vigorously lobbying for car washes to be opened with Victorian Members of Parliament. This is a strategy we will continue to aggressively pursue on behalf of all members. Once again, we encourage your assistance in broadening the political conversation amongst local members.

In addition to political lobbying, ACWA will be raising the consciousness of the plight of car wash operators amongst Victorian media outlets. These personal media contacts will be supported by a series of media releases in the coming days. Please consider how you may be able to play a role in distributing these to any local media contacts and/or social media groups you may belong to.

Please be aware that my fellow ACWA Directors and I, as well as our staff, are working hard behind the scenes to get the best possible outcome for the Victorian car wash industry. We will not rest until we have explored every opportunity available to us.

I will continue to keep you informed.

Neil Fox

President

Sent: Monday, 7 September 2020 11:58 AM

Like most, ACWA looked on in horror as Premier Daniel Andrews delivered his “Roadmap” out of Coronavirus restrictions yesterday.  In effect, there were some crumbs thrown to the general population through the extension of allowed exercise time and a one-hour extension to the night-time curfew.  Still, in reality, nothing changed for the State’s struggling business community.

Under conditions released yesterday, existing restrictions for car wash operators will remain until October 26, 2020.  Even then, changes will only be made if the 14 day average of COVID-19 daily case numbers falls below 5 (state-wide) AND there are less than 5 cases with an unknown source in the last 14 days (state-wide total).

As you all – as our valued Association members expect of us, we have been actively engaging with the Victorian State Government.  While we have been able to establish some traction, most Ministers, including the Premier, are issuing standard responses; “COVID-19 has created an enormous amount of enquiry, and we will get back to you in 6 to 8 weeks“.

ACWA is not alone in its frustration:

• Mr Rob Scott the CEO of Wesfarmers, despite being head of one of Australia’s biggest companies said in today’s Australian Newspaper; “he was unable to speak with the Victorian government to provide feedback to help develop their recovery strategy for businesses”.  (Wesfarmers employs about 30,000 people in Bunnings, Kmart, Officeworks and Target stores in Victoria).
• Peak national employer body, Australian Industry Group, accused the government of a lack of consultation and branded the roadmap “a document of despair for industry and their employees”. “We participated in consultations on the plan in good faith, but it is clear the Victorian government has chosen to ignore practical advice about how to now safely reopen workplaces and get the economy moving,” AI Group CEO Innes Willox said.
• Yesterday’s announcement also blindsided the Victorian Chamber of Commerce. Chief Executive of the VCCI, Paul Guerra, an organisation with a seat at the table during “Roadmap” consultations said “We were hoping for a road to recovery. Today we have been delivered a road to nowhere.”

Despite the setbacks to date, ACWA will continue to lobby and fight on behalf of car wash operator members. There is no logical reason for car washing to be impacted by restrictions; our key messages remain:

1. Car washing has already suffered an unnecessary and devastating impact from COVID-19 business restrictions, particularly amongst the industry’s small business operators.
2. Car washes contribute to community safety and hygiene. We provide an essential public service.
3. Car Washes can operate in a COVID Safe Environment, an environment that ensures the safety of staff and customers.
4. Car Washing remains an ecological necessity.

We remind members that they can play a role in the political process via their local member. Ring them, email them and knock on their office door if you have to.  If you would like assistance with your correspondence please let us know and we will provide key information.

I have called an emergency meeting of ACWA Directors for 9am tomorrow morning and I will keep all members up to date with our progress at this extraordinarily difficult time.

 

Neil Fox

ACWA President

 

 

The impact of the COVID-19 Pandemic forced the postponement of Car Wash Show Australia which was set to be held on the Gold Coast in September this year.

At its meeting on 18 August, the ACWA Board resolved to reschedule the Show to September 2022. We all have our fingers crossed that the Coronavirus situation will have been determined by then but, with the twists and turns the Pandemic has delivered to date, uncertainty around national and international travel restrictions remains.

The Association is seeking to re-establish the event at the Gold Coast Convention and Exhibition Centre, subject to receiving a competitive quote. We will keep everyone abreast of developments.

Stand-by to Rinse! Off the COVID Blues

As impossible as it sounds, the forced rescheduling of Car Wash Show Australia until 2022 means it will be five-years between Shows! And, to fill the gap, ACWA will introduce a new series of Rinse! Events and these will be programmed as soon as domestic travel conditions return to normal.

Rinse! is a car wash industry event like no other. It doesn’t pretend to have the bells, whistles and razzmatazz of Car Wash Show Australia, it simply presents a no-frills opportunity to connect car wash operators with dozens of industry suppliers, in just a few hours! The inaugural Rinse!, run in Brisbane during September last year was a huge success, and in the year ahead we are planning on taking Rinse! Australia-wide.

Come on COVID, give us a break will ya we’ve got Rinse! events to organise.

It was less than three weeks ago that ACWA conducted its Zoom Workshop on the newly announced Federal Government JobKeeper 2.0. Thank you to the almost 30 members who took part.

As we have found out time and time again during this Pandemic, things can change rapidly.

As a result of the severe COVID-19 breakout in Victoria, and the forced business closures in metropolitan Melbourne, Jobkeeper 2.0 has been tweaked. The good news, however, is that the new conditions may open the door for additional car wash operators to access the scheme.

Let’s take a quick look at JobKeeper to date:

• The Government confirmed that JobKeeper 1.0 would continue to operate on its original terms until it announced expiry date of 27 September 2020.
• On 21 July 2020, the Federal Government announced an extension to the original JobKeeper scheme and introduced JobKeeper 2.0. While it is helpful that the scheme was to be extended, the amount of support that is to be paid to eligible business was to be significantly reduced, and the qualification requirements tightened.
• In August, changes to JobKeeper 2.0 were announced, with rules that take effect from 28 September 2020. In summary:
  • There are two further extensions of JobKeeper proposed. They will run for the period of 28 September 2020 until 3 January 2021, and the second 4 January 2021 until 28 March 2021.
  • The qualification requirements are more rigorous than JobKeeper 1.0 but less rigorous than those initially announced in JobKeeper 2.0.
  • Under the revised qualification requirements, employers wishing to qualify for support during the first extension period until 3 January 2021, will have to show a drop in income of at least 30% in the September quarter 2020 against a similar period, most likely the same period in 2019.

Confused? There’s no need to be because our great friend Graham Lilleyman from ESSA has prepared a fantastic paper explaining all the details.

Simply log in to the Members Only Section of the ACWA website and use the navigation to the COVID-19 Resources area.

Our WHS partners at Eastman Lynch have provided generic COVID-19 Safe Plans for car wash operators.

Thanks to Danny and the Eastman Lynch Team.

While the document was prepared at enormous speed to help out Melbourne based members needing to maintain their sites during Melbourne during Stage 4 restrictions, we take this opportunity to remind operators around Australia that COVID-19 has not gone away.

Please keep enforcing safe distancing and hygiene processes at your sites.

We encourage everyone to take a look at the COVID Safe Plan and see if there are elements of the plan you could apply at your site, making it just a little safer. Simply log in to the Members Only Section of the ACWA website and use the navigation to get to the COVID-19 Resources area.

Check out ACWA’s Facebook Page

ACWA President Neil Fox recently provided ICA members his perspectives on the Australian car wash market. Check out the video on Facebook.  Go to the Australian Car Wash Association – Members Group.

On 5 August 2020 thee Victorian Government released a new and upgraded list of ‘Permitted Work Premises’ that includes a number of industry sectors that were not previously allowed to open.

This differs from the previous Stage 4 Industry List, issued earlier in the same week and some sectors that were previously listed as closed or restricted, are now included as ‘Permitted Work Premises’.

This List forms part of the Victorian Chief Health Officer’s directive on Stage 4 Business Restrictions for metropolitan Melbourne. Mitchell Shire remains at Stage 3 restrictions with the rest of Victoria.

Permitted Work Premises for the purposes of the RestrictedActivityDirections (Restricted Areas) (No 6) 1.0-05082020

Victorian Car Wash Operators are reminded that if they or any of their employees are attending a car wash site in the Melbourne metropolitan area,  they must carry a Worker Permit and photo ID or risk significant penalty.

Worker Permits can be found here https://www.vic.gov.au/worker-permit-scheme

Some good news at this time is always welcome.

We are sure many members will be well aware of grants available via the Victorian State Government’s Business Support Fund.  However, for those not familiar with the Scheme, we draw your attention to the expansion of the Program under Stage 4 Restrictions.  Under conditions of the scheme, businesses in regional Victoria can now apply for a $5,000 grant while those in Melbourne and the Mitchell Shire can apply for up to $10,000.

ACWA strongly encourages all members suffering significant losses or the need to close as a result of the Victorian COVID-19 Stage 4 Restrictions, check out details of the Business Support Fund – Expansion Program.  Full details are available here https://www.business.vic.gov.au/support-for-your-business/grants-and-assistance/business-support-package/business-support-fund

Importantly, operators who have already received a Business Support Grant or have applied for one, will not need to re-apply.  Qualifying applicants will automatically receive this additional allocation.

Applications for the program have been extended until 14 September 2020.