GM HOLDEN

Mr HAMILTON-SMITH (Waite) (15:06): My question is to the Premier. Has the government signed the promised co-investment agreement with Holden and the commonwealth and, if so, what are the terms and obligations on all the parties?

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (15:06): I thank the honourable member for his question. The nature of the agreement we have with General Motors Holden is the one that is evidenced by the exchange in correspondence. What has happened since that time? That agreement also contemplated a further more detailed agreement about precisely what would happen during this period between 2016 to 2022. It is that later funding agreement that is still the subject of negotiation and, because of the nature of events that have occurred—the announcement of the 400 jobs to be lost in South Australia—that is the subject of renegotiations.

I have had a number of meetings and discussions with Mr Devereux, but those matters are not yet concluded. They are being advanced in parallel with discussions about the fate of these 400 workers, ensuring that they are indeed voluntary redundancies and not forced redundancies. That has been our principal focus, because that is the more immediate issue coming to fruition at the end of July, so those things are being advanced in parallel.

It is worth saying though that some of the benefits in the agreement have also been acted upon, so some of the matters that were agreed between the state government and General Motors Holden have already been acted upon. For instance, those component suppliers that have been identified as long-term prospects for working in Holden's global supply chains have been identified and work is going on with them to ensure that they are able to reach or be sustained at a standard which will allow them to continue to be part of Holden's ongoing global supply chain.

They have travelled with Holden representatives to a number of other countries where there are home rooms that provide the various, if you like, hubs for component suppliers and ordering of the global vehicles that Holden will be manufacturing. So the agreement is being part performed, but elements of it now require renegotiation because of the nature of the decision Holden has taken.