NRMA

NRMA

National Roads and Motorists' Association
Formation	1920
Type	Mutual company limited by guarantee.
Headquarters	Sydney Olympic Park, New South Wales, Australia
Membership (2024)	2.8 million
Key people	Tim Trumper (Chairman) Rohan Lund (CEO)
Revenue (2024)	$750 million
Website	mynrma.com.au

The NRMA (trading name of National Roads and Motorists' Association) is an Australian organisation offering roadside assistance, advocacy for motorists and road-users, motoring advice, car servicing, International Driving Permits, travel, and other services in all of Australia except Victoria. It is a member-owned mutual company limited by guarantee. It was formed in 1920.

Prior to 2000, the organisation offered mutual insurance but that part of the business was demutualised and spun out as NRMA Insurance, which is now part of Insurance Australia Group. NRMA and NRMA Insurance are independent companies with an agreement to use the same brand name even though each company is responsible for distinguishing the difference between the two organisations.

History

Early history

National Roads Association

NRMA-endorsed new car dealer in Tumut, from a 2005 exhibition.

The Australian National Roads Association, which would become the NRMA, was launched in 1920. Its original aim was not to provide road service or insurance, but to obtain "reasonable and just legislation" to fund and improve roads. ^[1]

The early 1900s brought the arrival of motorised road transport and car and truck use were gaining popularity. The government was placed under pressure to improve roads as competition increased with railways. ^[2] The 1919 Local Government Act ^[3] left all decisions to local councils, where decisions were made "from the point of view of the local utility."

The 1950s heralded the beginning of a huge surge in the number of cars on Australian roads, and NRMA membership increased in kind. It hit one million members in the 1970s, and by the late 1980s, that number had doubled. ^[1]

Role of the RACA

The Royal Automobile Club of Australia (RACA) had been campaigning for better roads since its creation. The club had initiated a Good Roads Association in 1912.

The National Roads Association aimed to become a broader and stronger pressure group with the same objectives as RACA, and it received full support from the latter. RACA's President, WJ McKinney, and DM Cooper, the chairman of RACA's Roads and Tours committee, were among the provisional committee members when the Association was formally established on 4 February 1920.

Creation of NRMA and continued RACA involvement

NRMA hood ornament on a 1930s Rolls-Royce Phantom

Former prime minister Chris Watson became NRA president in 1920 and served until his death in 1941. The National Roads Association was restructured as the National Roads and Motorists' Association at the beginning of 1924. With a goal strikingly similar to that of RACA, it positioned the NRMA as a competitor as much as a collaborator, particularly when it began to employ its own road service "guides". These returned servicemen "of exemplary character" patrolled specific areas, including the popular beaches of Coogee, Bondi Beach and Bronte, or were based at congested spots on the roads out of the city where they could receive messages by phone or relayed by other motorists. ^[1]

The NRMA attended a 1925 meeting convened by RACA on traffic regulations. Together with other motoring lobby groups, they resolved to draft suggested reforms. Particular concerns included the need for a special traffic court, and a change to the "plethora of danger signs" that had appeared in the streets, accompanied by "frequently incomprehensible signals of police" at intersections. As an alternative to the red triangle placed by police at danger spots.^{[ citation needed ]}

Launch of NRMA Insurance

NRMA badges

By 1925, NRMA had 7,637 members, nearly double the previous year's. In that year NRMA formed NRMA Insurance, which also became a sub-agency of Lloyd's of London, and offered new household policies in addition to motoring insurance. ^[4]

The NRMA is now Australia-wide with the exception of Victoria. ^[5]

MyNRMA

NRMA is a member-owned mutual organisation. In 2024, MyNRMA provided roadside assistance to over 2.8 million members across across Australia, with the exception of Victoria. This includes discounts exclusive to members on products and services including roadside assistance, car servicing, car loans, driver training, batteries, and windscreen replacement. ^[6]

Relationship with RACA

When World War II began, it followed the RACA's early lead in forming the NRMA Transport Auxiliary. This force of 500 drivers would provide rapid troop transport if required. Staff member, Miss K. Broadbent, organised a Women's Auxiliary Transport Corps which trained 506 women to drive more complex vehicles such as trucks, ambulances and motorcycles. ^[7]

At the end of the war, RACA made the decision to cease its road service operations. The NRMA's growth had made its competing operations considerably wider in scope and reach. RACA's members were served by an agreement with the NRMA whereby RACA membership included entitlement to full NRMA services. ^[8]

Demutualisation

NRMA Insurance's financial success had led to a huge accumulation of surplus funds which could not be distributed back to members and was attractive to outside interests. Insurance premium rebates to members had the effect of artificially and harmfully deflating the price of NRMA's insurance products. Demutualisation would allow funds to be distributed to members without affecting longer-term product pricing.^{[ citation needed ]}

It was argued that demutualisation would also address perceived corporate governance issues that centred on the board conflict. For example, institutional shareholders (who would become significant owners of the large, newly listed company) would likely enforce a greater level of rigour and discipline^{[ clarification needed ]} on the board of directors.^{[ citation needed ]} However, demutualisation would give away control from members to institutional investors, with the result that motorists' interests would have less representation in governance than profit motivation. Member concerns centred on possible increases in insurance premiums and road service fees and decreases in service quality brought about by a profit-oriented company.^{[ citation needed ]}

An initial demutualisation attempt, promoted as "Share the future", proposed demutualisation of the entire organisation including both the insurance/financial services and road service companies. This proposal initially received member approval but was overturned by the Federal Court of Australia which found that the information material distributed to members was "misleading and deceptive." The successful court challenge was mounted by some of the board's directors (Fraser v NRMA Holdings Ltd (1995) 127 ALR 543).^{[ citation needed ]}

After years of discussion and acrimony, NRMA Insurance Limited was demutualised in August 2000 and was separated from the National Roads and Motorists' Association Limited. NRMA Insurance Limited later changed its name to Insurance Australia Group.^{[ citation needed ]}

Separate paths

Manly Fast Ferry

NRMA remains a mutual company owned by its members. Insurance Australia Group is a listed company owned by its shareholders. It has a number of operating subsidiaries using the NRMA brand, including NRMA Insurance Limited, as well as a number of other insurance and related brands.

During 2004 and 2005, the NRMA, in a joint venture agreement with JF Meridian Trust, acquired the Travelodge Australia chain of hotels in Australia. ^[9] This was sold in 2021. ^[10]

In September 2006, the NRMA purchased a 75% shareholding in the Australian Thrifty Car Rental franchise from Mitsubishi Motors Australia. ^[11] The deal was highlighted in the media and in NSW Parliament ^[12] as potentially involving conflict of interest with the board member Gary Punch. In December 2008, the NRMA acquired the remaining 25% shareholding in Thrifty. ^[13] In 2021 the Thrifty franchise was relinquished and the NRMA became a Sixt franchisee. ^{[14] [15]}

It has also continued to grow its travel and holiday operations by investing in tourist parks, and in January 2007, acquired a major stake in the travel wholesaler Adventure World. ^[16] In March 2021, it was announced that the NRMA had purchased the Tasmanian tourism assets of the Royal Automobile Club of Tasmania (RACT) including Cradle Mountain Hotel, Freycinet Lodge, Gordon River Cruises and Strahan Village to be operated under the NRMA Expeditions brand. ^[17] In November 2022, the NRMA acquired Pumphouse Point, located in the Cradle Mountain-Lake St Clair National Park, to also be operated under the NRMA Expeditions brand in Tasmania. ^[18]

In 2017 the NRMA purchased Manly Fast Ferry. ^[19]

EV

In 2012 the NRMA opened free public charging stations for electric vehicles in Sydney (fast charger) and Canberra. They also undertook electric vehicle roadshows to help raise awareness, and also trialed one of the first electric vehicles as roadside assistance vehicles. ^[20]

Criticism

In 2008 the NRMA was criticised for its anti-cycleway stance. Lord Mayor of Sydney, Clover Moore, said the NRMA, like big petroleum companies, has a vested interest in campaigning for car use. ^[21] Greens MP Lee Rhiannon said the NRMA has an anti-cycleway agenda. Said Rhiannon: "The NRMA's anti-cycleway campaign is a crude attempt to boost money for road building. It's time the NRMA leadership came into the 21st century and recognised that encouraging more cyclists is an easy way to reduce road congestion." Rhiannon accused the NRMA of using misleading statistics in its campaign. ^[22]

Advocacy

The NRMA advocates for improving road safety, reducing the cost of motoring and ensuring a better road and public transport network for all. In 1982, the NRMA worked with the Government of New South Wales to improve road safety by introducing random breath testing, and in 2012 NRMA was responsible for ensuring that all revenue raised by speed and red-light cameras is reinvested back into the road network.^{[ citation needed ]}

Thousands of members have taken part in the NRMA's annual Seeing Red on Roads and Seeing Red on Rail surveys, marking the roads and train stations that frustrate them the most. In 2014, the NRMA launched its online advocacy platform, Speak Out, giving members the chance to get involved in its advocacy work by suggesting and voting on campaign ideas, signing petitions and asking questions of NRMA subject matter experts.^{[ citation needed ]}

In recent years, NRMA's advocacy has led to significant reforms, including:

• Fuel price transparency legislation in NSW, forcing petrol stations to provide real time fuel information to motorists;
• Improved speed awareness signage and high visibility markings at mobile speed camera locations;
• Mandatory alcohol interlock devices for repeat drink drive offenders to reduce the number of drink drive offences committed;
• Increased fines and the loss of a demerit point for those who illegally park in disabled parking spaces;
• The recall of dangerous and hard-to-read 'bright lights' coloured number plates from NSW roads; and
• Record infrastructure investment in major road projects, including the full duplication of the Pacific Highway, improving road safety and reducing congestion.^{[ citation needed ]}

Publication

NRMA launched The Open Road to inform its members about its activities, including campaigning governments for improved roads, road safety and information about motoring. It was launched in 1921 under the name Good Roads and was renamed The Open Road in 1927. ^{[1] [23]}

References

1. Brooham, Rosemary (1996). On the road: The NRMA's first seventy-five years. Allen & Unwin. ISBN   1-86448-008-4.
2. "History of Queensland's roads (Department of Transport and Main Roads)". sc-tmrwcmgr-cd.azurewebsites.net. Retrieved 7 November 2023.
3. Local Government Act 1919, No. 41 (austlii.edu.au)
4. https://www.investsmart.com.au/investment-news/lloyds-the-view-from-the-top/68066
5. https://www.nrma.com.au/
6. https://www.mynrma.com.au/about#
7. https://www.mynrma.com.au/company/centenary/then-and-now/women-on-the-move
8. https://www.raca.com.au/web/pages/home?p_p_id=com_liferay_blogs_web_portlet_BlogsAgreggatorPortlet&p_p_lifecycle=0&p_p_state=normal&p_p_mode=view&_com_liferay_blogs_web_portlet_BlogsAgreggatorPortlet_mvcRenderCommandName=%2Fblogs_aggregator%2Fview&_com_liferay_blogs_web_portlet_BlogsAgreggatorPortlet_delta=10&_com_liferay_blogs_web_portlet_BlogsAgreggatorPortlet_resetCur=false&_com_liferay_blogs_web_portlet_BlogsAgreggatorPortlet_cur=2#
9. "NRMA invests in Travelodge hotel group" (Press release). NRMA. 31 December 2004. Archived from the original on 27 September 2007. Retrieved 28 June 2007.
10. Salter Brothers buys Travelodge portfolio for record $620m Australian Financial Review 23 July 2021
11. "Thrifty Australia Acquired in Joint Venture Purchase" (Press release). NRMA. 2 August 2006. Retrieved 28 June 2007.
12. Hansard extract, NSW Legislative Council, 19 September 2006, page 75 (article 46)
13. NRMA purchase of Thrifty under scrutiny Sydney Morning Herald 26 February 2009
14. NRMA hires Greenhill for Thrifty deals Australian Financial Review 3 February 2021
15. Sixt Takes Big Stake in Australia via NRMA Partnership Business Travel News 8 December 2021
16. "NRMA acquires travel wholesaler" (Press release). NRMA. 24 January 2007. Retrieved 28 June 2007.
17. Allen, Lisa (23 March 2021). "NRMA on Tasmainian resort buying spree". The Mercury . Retrieved 4 February 2024.
18. Wilmot, Ben; Petty, Sarah (15 November 2022). "Tasmania's picturesque 'Pumphouse Point' bought by motoring body the NRMA". The Mercury . Retrieved 4 February 2024.
19. The history of Manly Fast Ferry NRMA
20. "Electric Vehicle Hire with SIXT Car Rental - Sixt Car rental".
21. Moore, Clover (11 January 2008). "Cycling the way to go in this overcrowded city". Sydney Morning Herald . Retrieved 11 January 2008.
22. Smith, Alexandra (11 January 2008). "Bike lanes dangerous, cyclists warn". Sydney Morning Herald . Retrieved 11 January 2008.
23. The Open Road National Library of Australia catalogue

External links

• My NRMA
• NRMA Insurance