CADA Board of Directors — 2015-2016
Harry Mertin, the newly-appointed CADA Chairman, says it’s time that the people who work tirelessly behind the scenes to safeguard dealer interests in Canada get a little more recognition
“I’d be pleased if we could improve giving credit where credit is due,” says Mertin, a CADA Laureate, and longtime GM dealer from B.C., who takes the reins of the association from outgoing Chairman, Steve Chipman (also a fellow Laureate).
In a broad-ranging interview, Mertin updated Canadian auto dealer about the range of files the CADA is involved with and what to expect from the association in the coming months.
“I have full respect for what CADA delivers, for how hard those people work, the leadership we have on the management team, the executives on the board, and all the committees that are chaired by dealers,” says Mertin. “Those people don’t get enough credit for the fine work they do. I believe we take them for granted.”
Mertin says that until he joined the CADA board, he, like many of his fellow dealers across the country, didn’t fully comprehend the scope of the association’s activities.
“I have been in the industry for 39 years,” says Mertin. “Yet it wasn’t until I joined the CADA Executive that I had a genuine lesson in what CADA means to me, and should have meant to me all those years.”
Mertin says much of the work the association does is getting things quietly resolved behind the scenes, and it’s not always appropriate for the association to seek accolades. “It’s all done quietly, efficiently, and professionally,” says Mertin.
LEGAL ACTION FUND
Mertin says, for example, that the CADA’s legal action support fund paid out more than $430,000 in grants in 2015, and that money targeted precedent setting cases that could have had a broader impact on all dealers. The CADA vigorously pursues these cases before they can create what Mertin describes as a “domino effect.” He urges dealers and associations to continue to donate to the fund.
For example, after some heavy-duty lobbying, research and in-depth briefings, the CADA successfully persuaded the Canada Revenue Agency (CRA) to back off their position that dealers needed to pay GST or HST for arranging for financial services. Many dealers across the country had been slapped with a big and unexpected tax bill. This was a major victory that required the CADA to bring on legal counsel that specialized in financial transactions, taxation, specialized research to meet litigation standards, and accountants who specialize in taxation and dealer businesses.
INSURANCE PRODUCTS TAX-EXEMPT?
But now the CRA is exploring whether dealers need to pay tax for arranging insurance products for consumers.
“That is an eyebrow raiser,” says Mertin, adding that the CRA asked the CADA to develop a position paper on the issue to be delivered before the end of the year. “In my opinion, that’s a huge step. In this instance, they’ve come to consult us,” says Mertin, adding it was a much different approach than the one adopted by the CRA over the arranging for financial services file.
“We have earned the respect of CRA from the HST/GST,” he says. “We have the opportunity to show them that we disagree with them, and here’s how and why. That’s an accomplishment and a genuine order of respect for CADA.”
BANKS AND LEASING
Another major issue looming on the horizon is the next legislative review of the Bank Act that is coming in 2017. Finance officials have signaled that this review will be a “full legislative and policy round.”
The CADA surveyed dealers and found 95 per cent support the CADA’s position that the current restrictions on banks in the automotive leasing business should remain in place. If nothing has changed to alter the situation since the last time the Bank Act was reviewed, Mertin says nothing should change now. “This should be about what’s right for the consumer,” says Mertin. “That’s the most important aspect of this.”
2016 CADA SUMMIT
The CADA’s Industry Relations department continues to tackle issues of interest to dealers, including the 2016 CADA Summit, to be held Feb. 10, 2016 at the Omni King Edward Hotel in Toronto.
This is the fourth annual CADA Summit, and promises to be the best yet. “The CADA Summit tackles topics that are important and relevant,” says Mertin. “Come and learn.”
He says the world for dealers is changing — fast. “You want to understand the change so you can better react to it,” he says. Mertin says the CADA Summit has sold out the first three years and that proves that dealers are eager to learn.
The results of the 2015 Dealer Satisfaction Survey (DSI) will also be presented at this year’s CADA Summit. This year CADA expects a record response rate, and encourages dealer council representatives to take advantage of free consultation sessions to review the results.
For more of this interview, including Mertin’s comments about the new Dealership Management Program offered by the Automotive Business School of Canada, his thoughts on outgoing Chairman Steve Chipman and more, see the Jan/Feb. issue of Canadian auto dealer.
