Whether the national peak motor trades body will be MTAA Ltd or some new entity will be the subject of a meeting later this month between all the state motor trades associations, including those still members of MTAA Ltd (that is WA, SA and Northern Territory). McCall said the removal of the conflict around the secretarial services contract was a step in the right direction for MTAA Ltd, although he said questions remained unanswered about how the work would be transferred to MTAA Super’s trustee company.

Even those state associations no longer members of MTAA Ltd would appear to have some measure of influence in matters regarding the MTAA Super trustee company, which is a proprietary company limited by a sub-class of 11 shares, one each of which belong to the seven state or territory MTAs. MTAA Ltd itself has two shares, one is held by the Service Station Association (which is merging with MTA-NSW) and one by the Australian Automobile Dealers Association.

A range of stakeholders and observers consulted by I&T News said questions regarding the secretariat transfer, which were not addressed in Hawke’s March 24 letter, included: how will the Trustee resource itself up sufficiently to be able to provide the services; what contracts might MTAA Ltd currently rely on, such as for software, and can they be neatly transferred to the Trustee without cost or penalty; how will the services be charged to members in the future – does the new arrangement deliver any savings to members; what new insurance cover will the Trustee require to provide administration services; what additional conditions will APRA impose on the Trustee to provide the services; will the Trustee, rather than MTAA Ltd, require more of MTAA House in Canberra than it currently has to implement the new arrangements; will the secretarial services be provided inhouse by the Trustee or are they to be in fact provided by a wholly owned subsidiary of the Trustee to whom the secretariat function will be transferred?

Another question on the lips of many is how Michael Delaney, the creator of both MTAA Ltd and MTAA Super, will fit into the new regime. Unconfirmed reports originating from within the fund yesterday suggest that Delaney may again become a trustee of MTAA Super, for the first time in over five years. There is speculation he may become an executive director of MTAA Super, sitting alongside independent chair Allan Hawke.

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