AUTOMOTIVE INDUSTRY

Dr CLOSE (Port Adelaide) (14:28): My question is to the Premier. Can the Premier advise the house whether there is any urgency to secure national investment for Australia's car industry?

Members interjecting:

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (14:28): I note that a number of members on the other side laughed at the asking of that question, though one of the things that I did say at the outset of my ministerial statement is that this is the most crucial economic issue facing the state. I don't think it's actually—

Members interjecting:

The Hon. J.W. WEATHERILL: I don't think that it is a laughing matter. As outlined before, the car industry underpins tens of thousands of jobs here in South Australia and is worth billions of dollars in our gross domestic product. We know that the previous Labor government committed to more than $1 billion in funding to the car industry than is currently on offer by the Coalition government. They did not cut $500 million from the first stage of the Automotive Transformation Scheme, and they committed an additional $500 million to the next stage of the Automotive Transformation Scheme. The then government also committed to ongoing support into the 2020s and that this would be secured by legislation. So that is what we were facing. We know that that was enough funding to secure Holden's future and, indeed, the industry's future.

It is worth reflecting, I think, on the $500 million cut. For a party that is often heard to complain about sovereign risk issues—that is, changing the goalposts underneath companies after they have made their investment decisions—what would be a more significant sovereign risk issue than a group of companies having made their investment decisions to then have the underpinning funding arrangements taken from them after they have already made those commitments? It rather puts taxation change regimes into the shade. It is a spectacular act of sovereign risk, and it has been noticed by the large multinational companies that are making these investment decisions.

Then we have the federal Coalition government referring the issue of the car industry funding off to the Productivity Commission. Referring the issue off to the Productivity Commission is supported by the Leader of the Opposition. Referring it off to the Productivity Commission involves delay, a delay that the Leader of the Opposition is happy to underwrite. It also involves giving to an unelected body the decision-making process over the future of our car industry.

Anybody with a moment's reflection would know that the very economists who are actually involved in the Productivity Commission are the same economists who have set their face against subsidies. They do not like subsidies, so if you send a question of whether there should be subsidy to a body that does not like subsidies you're going to get a particular result. For the Leader of the Opposition to cooperate in that and, indeed, support that, is an extraordinary proposition—an extraordinary proposition.

Holden does need an answer now. The South Australian economy cannot afford further delay now. We cannot afford to stand still here in South Australia now waiting for some unelected body to get back to a government we know is deeply divided about its commitment to the future of the car industry. But what we could at least get here in South Australia is the Leader of the Opposition standing up for South Australia—the Leader of the Opposition standing up for South Australia—the Leader of the Opposition standing with us; but instead the Leader of the Opposition stands for nothing. He does not stand up for South Australia, and that is what we need at this juncture.

Members interjecting:

The SPEAKER: The Premier's time has expired.

Mr Marshall interjecting:

The SPEAKER: Would you like a question?

Mr MARSHALL: Yes, please, sir.

The SPEAKER: Then it would be a good idea to stop interjecting so I can call you. The leader.