GM HOLDEN

Mr HAMILTON-SMITH (Waite) (15:11): My question is again to the Premier. Is the government's strategy outlined in its recent economic statement to 'grow advanced manufacturing' contingent and dependent upon Holden's continued presence in SA? If Holden's goes, does your strategy go with it?

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (15:14): That is a good question, because the truth is that we made a judgement that protecting the future of Holden's was an important component of our advanced manufacturing strategy. It does not mean that the advanced manufacturing strategy disappears. In fact, if anything it makes it more urgent, given the risks associated with Holden's. We took the view, on advice, that we needed to have a manufacturing sector which transforms itself. That is the means by which you transition from old to advanced manufacturing.

The devastation that would occur and the loss of skills and capability that would occur in local businesses here in South Australia would be such that it would seriously damage our advanced manufacturing strategy. That is why we have pursued so strongly the co-investment. Of course it does not rebut it. If anything, it just underscores the importance of it: that these businesses that are in the manufacturing sector competing in high Australian dollars, struggling to compete on the basis of cost, have to go up the value chain and now compete on the basis of value.