Grievance Debate

GM HOLDEN

Mr HAMILTON-SMITH (Waite) (15:21): The Labor state government is lost on the question of Holden and what to do about transforming Holden into the future. We have had the debacle in the last week of a Labor prime minister throwing the Holden manufacturing business into chaos and confusion by changes to the FBT rules that affect fleet purchases. He did this without consulting with the only Labor premier on the mainland, the Labor premier responsible for the Holden plant. To just go out there and make a car plant announcement like that without even checking with your state Labor colleagues reflects the level of dysfunction within Labor governments both federal and state.

The effect of this decision has been to cause orders to be thrown out the door by leasing companies around the country, with a dramatic and immediate impact on home-based vehicle manufacturers. What has the Premier done about it? Instead of ringing up the Prime Minister and demanding an audience, flying up to Canberra and saying to him, 'Reverse this decision', we have had the Premier instead going to Melbourne for guidance to see a more junior minister and consult and come back with a so-called 'four-point plan' that he says will soften the problem.

Well, the fact is that what we needed from the Premier was leadership. What we needed from him was for him to stand up to the Prime Minister and say, 'This is the wrong decision; it is a rotten idea, reverse it.' Instead, he has demonstrated weakness, he has demonstrated that he is not prepared to take this up with the Prime Minister. As far as we are aware, he is yet to speak to the Prime Minister on the issue and certainly is yet to meet with him. What it tells us is that the Premier and the Prime Minister are not talking and are not communicating and that the result is problems for Holden and for the local manufacturing industry here in this state.

These four points that the Premier has come up with, let me just run through them. The first point is to encourage more people to buy locally manufactured cars. Well, hello? Isn't that a stunning new announcement. There is nothing new in that. Everyone from all sides of politics and industry has been calling for that for years. There is nothing new in that; it is complete and utter nonsense.

The second point is to exempt those manufacturers that produce LPG or hybrid cars from the new FBT arrangements. Well, I have checked on this, and there are no hybrid cars produced here in South Australia by Holden. They have a small role in LPG production; it is certainly not their main business. There are limited benefits for that proposal as far as South Australia is concerned.

His third proposal is to exempt local manufacturers from the new FBT rules. The Premier said he opposed tariffs. In effect, he now wants to create one set of financial circumstances for customers who buy imported cars and another set of financial circumstances for those who buy local cars. You either support tariffs or you do not. You either support financial imposts on imported cars or you do not. You cannot have a bet each way, and that is what the Premier has done.

Finally, he says we need to increase the luxury car tax from around $60,000 to $70,000, and it was reported that way in the Sunday Mail. Of course, what the Premier overlooked is that that would have the effect of reducing the purchasing price of an imported vehicle by anything up to $500 per vehicle. It is going to make the VW Golfs, the BMWs, the Pajeros and the Subarus more affordable, and they compete with Holden.

So, today he has come into the house and made a statement that appears to qualify that position. He is now inferring in his statement today that he only thinks the increase in the luxury car tax should apply to mainstream, locally produced vehicles, whatever they are. Of course, he overlooks the fact that only the Caprice really triggers over that $60,000. Your average punter hardly buys the Caprice.

The Premier is in disarray on this. He had an opportunity to show courage; instead, he has shown weakness. He has shown that he is not communicating with Prime Minister Rudd, who clearly is not communicating with him. He had an opportunity to be strong; instead, he has been weak. He has had an opportunity to show leadership; instead, he has shown failure and the losers in this are Holden and the South Australian workforce.