Automotive Supplier Diversification Program

The Hon. J.E. HANSON (14:48): My question is to the Minister for Manufacturing and Innovation. Can the minister inform the chamber of how automotive companies like Axiom in northern Adelaide are diversifying their business?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (14:48): I thank the honourable member for his question and his keen interest in this area. Despite the challenges that are being faced, the government appreciates the value of manufacturing in our state. We have been committed to supporting the South Australians who have made some of the best cars in the world and have made them efficiently over nearly half a century.

Importantly, we have always recognised that the automotive sector didn't just provide jobs at Holden—or, in other states, Toyota and Ford—and for the dozens of tier 1 and tier 2 suppliers, but provided manufacturing understanding right throughout the economy. I am here to talk today about some of the automotive suppliers and how they are diversifying, finding a positive future and securing new futures for their workers.

Recently, I had the opportunity to visit Axiom Precision Manufacturing and see some of the great work the company and the workers are doing. I say 'some of the great work' because, as a result of Axiom's diversification plans, they are no longer just making components for the automotive sector but are also one of the local manufacturing firms contributing towards the Joint Strike Fighters that will be part of Australia's defence capabilities in the future.

Given the involvement in crucial defence technology, much of their new work was not on display for public viewing. Conforming to new rules, standards and regulations that exist in different industries has been just one of the challenges that Axiom and businesses looking to diversify have had to deal with. It is pleasing to see that the company and its workers are approaching these challenges head on and working hard to ensure that, when the whole car automotive manufacturing sector comes to an end in October, there is a future for a company such as this into the future.

Axiom's primary relationship was with Toyota, and as a tier 1 supplier to Toyota they were able to share in $3 million worth of funding nationally from Toyota to help them move into new work. With a minimum allocation of $5,000, allocated based on the number of impacted employees, this financial support goes across seven broad themes: reskilling, on-site employee transition centres, financial education, health and wellbeing for workers and literacy and numeracy support.

I am glad that Toyota has shown support for its supply chain workers who have built Toyota and contributed to making Toyota the brand it is in Australia today. Axiom will also receive $17,230 through the state government's Automotive Transformation Taskforce for 21 workers to retrain their jobs by undertaking training across 12 areas, including various manufacturing techniques, project management, training assessment and mechanical measurement.

At the end of the training program the staff will have the skills required to further develop Axiom's presence in aerospace defence, medical devices, electronic hardware and rail industries. I congratulate Axiom. I have been very impressed by both management and workers at the way they have and continue to diversify what they do.