GM HOLDEN

Mr ODENWALDER (Little Para) (14:09): My question is to the Premier. What action is the state government taking to secure Holden's future in South Australia, and is he aware of any alternative proposals?

The Hon. J.R. RAU (Enfield—Deputy Premier, Attorney-General, Minister for Planning, Minister for Industrial Relations, Minister for Business Services and Consumers) (14:09): I thank the honourable member for his question, and, of course, Holden being the heart of his electorate and his community, this is a matter of significance for him and his community. As members would be aware, we know that the future of Holden's is absolutely central to the future of South Australia's economy. Sixteen thousand South Australians would lose their jobs if Holden's were to close and we could lose up to $1.5 billion in our gross state product.

Yesterday, I detailed the government's response following the changes that were announced to the fringe benefits tax by the commonwealth government. I put forward a set of positive proposals that are among a number of options that we believe the commonwealth government could consider. I have also spoken to the federal Treasurer (Hon. Chris Bowen) and met with the Minister for Innovation, Industry, Science and Research (Senator Kim Carr) to raise our concerns about this proposal.

I have also spoken today to Mr Mike Devereux, the managing director of Holden. I have been encouraged by recent comments that have been made by members of the commonwealth government who have taken these concerns seriously. Ministers, including minister Butler on radio this morning, have re-emphasised the commitment of the commonwealth government to ensuring that the coinvestment necessary to secure the future of Holden's is indeed made.

On the other hand, the South Australian government has been disappointed with the policy response put forward by the federal Coalition. Their plan to simply reverse the FBT changes would assist imported as well as Australian-made cars, as opposed to the plans that I put forward. There is an opportunity to go forward here. There is an opportunity for us to actually take this challenge and put us in a better position than we were before we started this. We know that the federal Leader of the Opposition, Tony Abbott, and the shadow minister in the area, Sophie Mirabella, have reconfirmed the federal government's plan to rip $500 million out of automotive assistance—

Members interjecting:

The Hon. J.W. WEATHERILL: The federal Coalition's plans—

Mr Marshall interjecting:

The Hon. J.W. WEATHERILL: Well, they're the alternative government.

Mr Marshall: That's not what you said, though.

The Hon. J.W. WEATHERILL: They are the alternative government. I correct myself, but they are the alternative government. They are promoting themselves and, if the recent polling is anything to suggest it, they may well be the next federal government, and the truth is that they propose to rip $500 million out of support for the car industry and subject the remainder of the funding to a so-called review by the Productivity Commission. I think everybody knows where that review is destined to head. We also know that the opposition leader of the South Australian parliament has confirmed that he supports the federal opposition's plans to take $500 million out of the automotive sector.

Mr Marshall interjecting:

The Hon. J.W. WEATHERILL: Well, the state opposition leader says, 'What has this got to do with anything?' Well, taking $500 million—

Mr Marshall: Sorry, that is not what I said at all.

The Hon. J.W. WEATHERILL: Well, what did you say, then?

Ms CHAPMAN: Point of order!

The SPEAKER: Yes, the point of order is?

Ms CHAPMAN: The Premier was asked a question about what he is doing to secure the GMH situation in South Australia, not what everyone else is in the world is doing.

The SPEAKER: What was the point of order?

Ms CHAPMAN: Relevance.

The SPEAKER: I will listen carefully to what the Premier has to say.

The Hon. J.W. WEATHERILL: The opposition spokesperson did not listen to the question, because it was: is he aware of any alternative proposals? That was the question, and I am commenting on the alternative proposals which have a direct relevance on this matter. It is important. He has a fraternal party: the federal Coalition is, of course, related to the state Liberal Party. It is material what the attitude of the state Leader of the Opposition is. He could have influence on his federal colleagues. It would be embarrassing for his federal colleagues if he joined with us and said—

Members interjecting:

The Hon. J.W. WEATHERILL: It would be embarrassing for Mr Abbott if the Leader of the Opposition here joined with me and opposed his plans to take $500 million out of automotive assistance, but instead, what happens is that the Leader of the Opposition joins with Mr Abbott.

Mr Whetstone: Have you called the Prime Minister?

The SPEAKER: I warn the member for Chaffey for the first time.

The Hon. J.W. WEATHERILL: Instead, what happens is the state Leader of the Opposition joins together with Tony Abbott in common cause to take $500 million out of automotive assistance, which is to the detriment of South Australia. We call upon him to join with us, so that we can present a united front nationally, just as we call upon him to join with us in our FBT proposals. To present a united front nationally, I am prepared to actually adopt a different position than my federal party—the federal Labor Party—on this question in the interests of South Australia. I simply call upon him to join with me and do the same, so that our arguments will have more force at a national level.

Members interjecting:

Mr MARSHALL: Supplementary.

The SPEAKER: Before the supplementary, I call the deputy leader to order; I call the member for Morialta to order, and he is lucky just to get that one with the number of his interjections; I warn the member for Chaffey for the second time; and I warn the Minister for Transport for the first time. Supplementary.