Repair shop owners in BC worried about changes at ICBC

VANCOUVER (NEWS 1130) – The head of an organization representing hundreds of autobody shops is worried new cost-cutting measures at ICBC will lead to service delays and shortages.

The president of the Automotive Retailers Association is responding to a new report identifying more than $60 million worth of savings.

Ken McCormack insists overall costs keep rising thanks to new technology and more expensive materials used in construction, so it’s not fair to punish small business owners who depend on contracts from ICBC.

“Now, when you’re a monopoly and you’re responsible for 80-90 per cent plus of the value of the insurance vehicle repair business in the province, making decisions like that, obviously that could have a very significant impact.”

Attorney General David Eby has already said he wants to meet with all stakeholders to find savings together.

“Costs have to come from somewhere. Part of that means reforms, uh, with all the expenses. Have those conversations with autobody repair shops to get down the costs that are climbing there.”

Earlier this month, a Price Waterhouse Coopers report identified more than $60 million of savings.

One change already approved by Eby is the hiring of 60 more estimators at ICBC, but McCormack says many recommendations made by the Price Waterhouse Coopers report fall in line with suggestions being made by ARA members for years.

“Hopefully, this will open the opportunity for us to have dialogue ultimately meeting the needs of the motoring public, but ensures the viability of a critically important industry in this province.”

He’s also questioning the hiring of more estimators at ICBC after the PWC review found no significant evidence of overbilling by body shops, but Attorney General David Eby says only two per cent of invoices are currently being audited.

“We’ve made a commitment to British Columbians about making life more affordable and that’s why we’re having difficult conversations with autobody repair shops, with lawyers and other stakeholders in the system to ensure that money’s being spent wisely and part of that means oversight of autobody repair shop estimates, for example.”

McCormack admits he’s worried about the ICBC ‘monopoly’ restricting how many shops can do repairs.

“It sounds very much like procurement. ICBC might be in a position of picking winners–for lack of a better term–regardless of qualifications or capabilities of shops, suggesting which shops can engage in ICBC business.”

He adds it’s frustrating because suggestions made by the ARA were ignored by the former Liberal government.

“There was an independent third party review conducted by MNP a year and a half ago and they came out and supported the need to make sure that this industry remains viable –to do the work and frankly, not lose their business because of ICBC’s financial issues.”

Eby says the hiring of 60 new estimators is just one fix in the works and capping payouts for minor injuries is another.

“How we do litigation for minor injuries –that the system is proportionate to the fact that if you have some minor injuries, you don’t go to full court.”

Eby adds most of the money ICBC lost in recent years is linked to rising claim costs which were not properly addressed by the Liberals.

The thousand-member ARA has also been advocating for increased use of recycled parts–something Eby’s already suggested he’s willing to consider.