MOTOR VEHICLE INDUSTRY FUNDING

21 Dr McFETRIDGE (Morphett) (9 May 2007). How much of the $3.4 million funding for the provision of export support to the motor vehicle industry over the next two years has been allocated to the Mitsubishi and General Motors Holden manufacturing plants, respectively, and what are the details of this program funding?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): The Department of Trade and Economic Development has advised the following:

General Motors Holden, the state's largest manufacturer, sought financial assistance from the commonwealth, Victorian and South Australian governments in October 2006 for a combined total of $13.5 million to undertake a safety enhancement project consisting of research and development, training and re-engineering to improve the safety and fuel efficiency of their passenger vehicle range.

The South Australian and Victorian governments each agreed to provide $3.4 million and the Commonwealth Government committed $6.7 million.

The safety enhancement project will facilitate the introduction of technological improvements in safety and fuel management systems, and achieve improvements in greenhouse gas emissions to General Motors Holden's locally manufactured passenger vehicles.

General Motors Holden is attempting to establish its Australian operations as a credible global niche manufacturer to General Motors' operations around the world, building product that fills export market gaps for a short-term while domestic product in these markets is brought on stream.

General Motors Holden announced in February 2007 that it had won a contract to export around 30,000 Commodores a year to the United States to be sold as the Pontiac G8.

The South Australian Government is currently working to finalise the terms, conditions and timing of payments in respect of General Motors Holden's safety enhancement project.

None of the $3.4 million in funding was allocated to Mitsubishi.