Automotive Industry

The Hon. J.M. GAZZOLA (14:45): My question is to the Minister for Automotive Transformation. Minister, will you inform the chamber how the federal budget will affect the South Australian automotive industry?

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (14:45): I thank the honourable member for his question and for his ongoing interest in these matters. Support for the auto industry has been bipartisan for decades. Under the previous federal Labor government, there was a commitment from Holden to continue manufacturing cars in Australia and a commitment from governments to continue to support this manufacturing.

The notion that governments in Australia have been too generous in their support of the auto industry is, quite frankly, a lie—it is a big fat lie peddled by many Liberals. Australia is one of only 13 countries in the world that has the design, engineering and technical capabilities to develop a motor vehicle from concept to market. To maintain this capability, all car manufacturing countries have significant government assistance. Based on figures in 2011, in Australia direct budgetary support for the auto industry was estimated at $US18 per capita per year. The corresponding figures in other countries are: $28 per capita per year in the UK; $90 in Germany; $96 in Canada; $147 in France; $265 in the US; and $334 in Sweden.

Australian government assistance for car manufacturing is relatively modest compared with these countries, yet there are those who think that even this modest level of support was too much. I can imagine that there are generations of federal Treasury officials who have secret plans to make savings by cutting this relatively modest support—

The Hon. R.L. Brokenshire: Paul Keating.

The Hon. K.J. MAHER: —to the auto industry, no matter how much it wrecked local economies and people's lives. There is an injection saying 'Paul Keating'. That is complete nonsense; the Labor government has consistently supported the auto industry. I can imagine that Treasury officials have been waiting for a federal treasurer just dopey enough to go along with their plan. Then in December 2013, while the Prime Minister wasn't in parliament, the dopey Treasurer took his chance. It is not clear whether the Treasurer was just being opportunist in the Prime Minister's absence or whether this was a premeditated attack—

The Hon. J.S.L. DAWKINS: Point of order: the minister has reflected on a minister of the commonwealth government in language that I think is unparliamentary, and I ask you, Mr President, to get him to reflect on that.

The PRESIDENT: Minister, when you refer to a minister from another house or another parliament, refer to them with respect.

The Hon. K.J. MAHER: The widely acknowledged less than able federal Treasurer took his chance. It is not clear whether, when he took his chance, he was being opportunist or whether it was a premeditated attack that the Prime Minister wasn't around for. In any event, the Treasurer launched an extraordinary question time attack on GM Holden, effectively goading them to close and leave Australia. The Treasurer said that it was time for Holden to come clean, to be fair dinkum with the Australian people. 'You are either here or you're not,' the Treasurer carelessly quipped. Holden, the very next day, announced that it would be ending its manufacturing business in Australia. The Liberals don't care. They have a 'live and let die' attitude to one of this state's most important industries.

The Hon. D.W. Ridgway interjecting:

The Hon. K.J. MAHER: The Hon. David Ridgway interjects even more. After earlier having a mildly insightful question about the auto industry, he is determined to prove his ignorance by mindless interjections. Notwithstanding—

Members interjecting:

The PRESIDENT: Minister, sit down for a second. Standing order 193—

Members interjecting:

The PRESIDENT: Order! Standing order 193 states:

The use of objectionable or offensive words shall be considered highly disorderly; and no injurious reflections shall be permitted upon the Governor or the Parliament of this State, or of the Commonwealth, or any Member thereof, nor upon any of the Judges…

So, please treat standing order 193 with respect, and go about your business.

The Hon. K.J. MAHER: I thank you, Mr President, for your always wise guidance in these matters. Notwithstanding the fact that, had we had a federal Labor government we would not be staring down the barrel of the closure of the auto industry, we are where we are and we have to face those realities.

The Hon. D.W. Ridgway: Yes, we would.

The Hon. K.J. MAHER: Another interjection that 'yes, we would'. The auto industry had relatively modest support through a written agreement with the former federal Labor government that this Liberal government did not honour. We are where we are.

On 10 March this year I welcomed the federal government's announcement not to cut the $900 million that they were planning to cut from the automotive transformation scheme. These funds were desperately needed to help companies diversify from the auto industry, to support new industries that will create new jobs. I stood with the federal industry minister on that day and I welcomed that announcement. It became clear, as the day progressed on 10 March this year, that this in fact was just a cruel hoax. They were not planning to make the whole $900 million available, but it was left up in the air and left in complete uncertainty.

This federal budget reveals that pretend good news to be nothing more than a cruel hoax. The federal Liberal government intends to spend just $105 million, effectively ripping $795 million out of the scheme. The federal Liberal colleagues of those opposite have chased this manufacturing industry out of South Australia, chased automotive companies out of this country. In the federal budget they have offered nothing to assist the industry, its workers and their families.

The South Australian government believes the guidelines for the scheme should be expanded to enable companies to use funds from the automotive transformation scheme for diversification strategies and new markets and to support new industries. It is not just South Australia that was bitterly disappointed at the careless disregard the federal government has shown. I have been in contact with my counterpart in Victoria, who is similarly dismayed at the carelessness of this federal government.

The Liberals, the South Australian Liberals, just will not stick up for South Australia. Rather, they will muck about, talk about where other money is coming in, but they just will not stick up for South Australia and call on their federal colleagues to spend the money in the ATS. It is a small target strategy of their campaign genius, the Hon. Rob Lucas: be a small target, don't say anything, don't stand for anything, don't stick up for anything and, most of all, don't rock the boat and argue with your federal Liberal colleagues in Canberra.

The last state election and recent by-elections showed the genius of this strategy! You don't need to be a genius to work out that you have to be unequivocally on the side of South Australians. Even if the Liberals here had not come to the realisation—

The Hon. J.S.L. DAWKINS: On a point of order, the minister seems unaware of the fact that, when he refers to 'you' he is talking about you, sir, in the chair, and I think he ought to actually learn that lesson.

The PRESIDENT: Take note, minister.

The Hon. K.J. MAHER: I am always pleased to be guided by the Hon. John Dawkins. He has been here a very long time, Mr President, and he knows these things thoroughly. I am always pleased to be guided by him. Even if the Liberals have not come to the realisation that standing up for South Australians is the right things to do, then they ought to have the foresight to realise that they are politically finished if you don't. The Fisher by-election proved that.

I am not usually one to offer advice to the state Liberals, but I would encourage them not to follow the advice of the Hon. Rob Lucas, who has one eye on retirement and spending the good life with his ponies. I advise them to not follow: don't follow the Hon. David Ridgway, who has spent his entire political career in opposition; he knows no other way, and he, too, has one of his eyes firmly on retirement and drinking muscat till dawn at the Adelaide Club with his mates.

The Hon. D.W. RIDGWAY: On a point of order, I am not a member of the Adelaide Club, and I want the minister to withdraw that—

Members interjecting:

The Hon. D.W. RIDGWAY: —because I'm not a member of that club.

The PRESIDENT: Okay, alright, sit down. Obviously, the Hon. Mr Ridgway would find it embarrassing to belong to the Adelaide Club, so I think you should withdraw it, minister.

The Hon. K.J. MAHER: I withdraw that comment and note that he is disowning his mates who are members of the Adelaide Club, and that he finds it such an insult.

Members interjecting:

The PRESIDENT: Order!

The Hon. D.W. RIDGWAY: Point of order: I would like to know what relevance all of this rubbish has to the question that was asked.

The PRESIDENT: I hope it is the fact that you are very passionate about this issue that is leading you onto this line, but let's get back to the question.

The Hon. K.J. MAHER: Thank you very much, Mr President. As I have said, we are deeply disappointed with the lack of support for the auto industry. For people who have potential, like the Hon. Andrew McLachlan, there is a better way. Be on the side of South Australians. Occasionally call your federal mates out and stick up for this state and its people. Do not risk another generation in opposition, a lost generation, the generation of political Peter Pans. There is a better way. Stick up for South Australians, not like on water, not like on submarines and not like on the auto industry.