Karters finally to get the benefit of the AKA tyre contract conditions…..

Sometime early in December 2007 AKA Qld commissioned someone to delve into the AKA tyre tender contract to ensure it was being upheld, you see, all those who tendered for a contract with the AKA were well aware that a rise and fall clause existed within the contract. All except the AKA President !!!
This rise and fall has two purposes 1. to give karters a benefit in the case of a rise and fall in the value of the Australian dollar and 2 to give the contractor a similar benefit in the case of the Australian dollar going the opposite way… win win for both.
 
These details were delivered to the AKA Executive by AKAQ only to be told by the President that the contract was tendered in Australian dollars and that no such rise and fall exists , it is even mentioned to the NKC at a meeting that there was no requirement to alter the price of the contracted tyre to the karter. 

The contract clearly states and is attached for your reading (>Link Contract) , that the first 365 days are without variation to the price- the ‘trigger’ to vary / change the price is  applicable only after 365 days and only if the Australian dollar varies by more than 5% . This ‘trigger’ took effect by my calculations on the 30/11/2007.

The tyre contract also requires, (as a clear condition of the contract) for the contractor to supply the AKA, in writing, within 7 days, of any change in excess of 5% in the value of the Australian dollar – this was not complied with, and those who have a tyre contract were in breach of the contract for which a separate penalty applies. 

More importantly the end user of the tyres ( the karter) was eligible to a reduction in the price of the tyre, and in the case of MG tyres a reduction of some 12%, and in the case of Dunlop  some 7%, so since November last year the AKA have stalled on applying the conditions of the contract and the karter has been paying more than he should…

Finally after some embarrising questions, we are to see the new price and the contract conditions being applied, but only after persistent bleating – it beggars belief that som within the AKA should attempt to delay this situation when it is clearly reflected in the contract they are required to ensure is upheld without question.

The result of failing to act promptly to service its karters  has seen karters pay more than they should for some 3 months , it will eventually see a decrease in the tyres costs being applied (as per the contract conditions) but also that the difference in price of  all stock sold since the 29/11/2007  will be paid in to general revenue of the AKA when this should have been passed on to the consumer,   eventually the price will be reflected to the value of the change in the Australian dollar and the benefit will finally reach the end user.

It is remarkable that binding contracts when favoring karters are so slowly dealt with yet when AKA needs to appease industry our leaders rush around with extreme haste to satisfy their needs. …

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