Ministerial Statement

HOLDEN COINVESTMENT

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (14:01): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.W. WEATHERILL: The automotive industry is one of the most critical sectors in the South Australian economy. The loss of the automotive industry would cause the loss of as many as 13,000 jobs and wipe up to $1.2 billion from our gross state product. Today I visited Carr Components in Netley to launch a public campaign about the future of car making in Australia called More Than Cars. Just before I came in here today I was joined by members across the chamber to show support for the industry.

It is clear that there is more work to do to convince the commonwealth government about the key importance of this industry. This campaign is not just about workers at Holden's plant or the businesses that make components: it is about the whole economy of our state. Professional service firms like lawyers and accountants that rely upon firms in the automotive industry will lose. Cafes and restaurants, builders and tradies all stand to lose because of lost spending from automotive workers and, perhaps most importantly, our economy will lose the capability in the manufacturing industry which it has developed through the automotive industry.

The automotive industry, together with the defence and clean technology sectors, is one of the most significant value chains in manufacturing. It is part of the foundation of South Australia's advanced manufacturing base. Whenever I visit a factory, even in fields as removed from the car industry as food manufacturing, I meet workers who learnt their skills in lean manufacturing processes in the car making industry.

These capabilities that would set the rest of the manufacturing industry in South Australia back would be very difficult to rebuild once lost. We acknowledge that the industry needs to change, to transition into a sustainable industry, ultimately less reliant on government support, but this transition cannot occur if the industry ceases to exist. Finalising investment in the car industry is now urgent, given the industry's contribution to jobs and the economy.

The commonwealth has announced its intention to cut $500 million from support for the car industry. Holden has made it clear that it needs more government support, not less. The longer the commonwealth government delays committing to a sustainable future for the car industry, the more likely it is that Holden will leave Australia. The state government has committed $350,000 to this campaign from existing resources, which is a small investment, given the importance of the automotive industry to this state.