Service Alberta scrutinizes vehicle industry watchdog

A leakeddocumentreleased by the Wildrose partyshows the Alberta government has serious concerns about the qualityand impartiality of investigations done by the Alberta Motor Vehicle Industry Council (AMVIC).

In a letter written byService Alberta minister Stephen Khan to Wayne Paulsen, board chair of AMVIC, Khan raised several concerns,including:

• Misuse of administrative enforcement tools
• Investigations and hearings that have not been reached in a manner that is fair, impartial and open
• High staff turnover rate with low morale among investigators

In an interview with CBC, Khan wasn'tasdirect.

I'm not going to say that there arent some issues...that we want to work with and support AMVIC and through our work with the Board," he said. "We're confident we're going to be able to do that.

AMVIC is the industry-funded regulatory agency responsible for licensing and regulating auto dealers and repair shops. It also investigates consumer complaints about everything from problems on the shop floor to inflated bills with the goal of protecting consumers.

In releasing the letter, theWildrosecritic for Service Alberta, RickStrankman, said the actions that are alleged to have happened at AMVIC are "extremely serious" calling it an abuse of taxpayers dollars.

Albertans and consumers in general in Alberta deserve to know and understand how their agencies are working,supposedly, for them, he said.

Khan met with AMVIC's Board on Monday and said he told them to make improvements to how they do business to restore consumers faith in the industry.

Confidence in the industry is good for stakeholders...and consumers," he said."Ultimately, thats the sweet spot that we need to achieve for all Albertans.

Khan refused to say where the complaints about AMVIC originated.

In his letter to the AMVIC board he noted the staff morale among investigators is low, and thatalmost three quarters of the staff have left the organization in the last two years.

CBC Go Public Investigations reveal problems at AMVIC

A Go Public investigation in March 2013 found consumers who said they were told by car dealers to pay hundreds of dollars for optional warranties they hadnt requested.

• EXCLUSIVE:Alberta government vows action on auto dealer fees

Consumersalso complained about paying $400 document fees after they had agreed to a final price. Alberta law says the only mandatory charge beyond the agreed-upon sale price is GST.

At the time, GeorgeInyof the Automobile Protection Association calledAMVICcomplacent and a rubber stamp.After that,AMVICpromised it would do more investigations.

Since then the number of charges, fines and orders against auto businessesin Alberta haverisen.

In a statement, the executive director of AMVIC, John Bachinski, said the organization has a very strong and competent investigations team and vowed they are committed to work with Service Alberta to see where they can make improvements.