Automotive Industry

The Hon. T.T. NGO (14:57): My question is to the Minister for Automotive Transformation. Can the minister tell the chamber how the automotive industry is transitioning?

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) (14:57): I thank the honourable member for his question and his interest in this matter. It builds on some of the comments that I was able to make in relation to the question from the Leader of the Opposition in this place.

Tomorrow will be an emotional day as the last car rolls of the production line at GM's Elizabeth plant and whole car manufacturing in South Australia and this nation ceases. Our thoughts are first and foremost with the South Australians who are directly impacted by this closure. This is a significant loss for the northern community, with the end of more than half a century of vehicle manufacturing by GM Holden at Elizabeth. It is difficult to think that after Friday, Australia will no longer sit with the 12 other countries that can build a car all the way through from sketchpad to showroom.

We know that the closure of whole vehicle manufacturing did not need to happen, but it is happening and we are doing what we can as a South Australian government to deal with the consequences. Over the last year I visited many automotive companies and witnessed firsthand the significant contributions and outstanding achievements that both the companies and their employees have made to the automotive industry and to manufacturing in this state.

All generations of South Australians who have worked within the automotive industry should feel incredibly proud of their achievements. Speaking with many of the employees at both Holden and the auto supply chain just reinforced how proud they are of what they have done. We understand that the skills and know-how born from our automotive industry will continue to be strong assets as other industries transform in this state.

We know that we need to play a strong role in supporting the automotive industry with a range of initiatives to help both workers and the supply change secure their future in the wake of Holden's closure. The immediate objectives are to help displaced workers find new employment, ensuring all workers are supported in transitioning to the next stage of life, whether it is in a new career, study or into retirement.

One of the misconceptions that occasionally arises is that manufacturing in this state is dying along with the closure of Holden. It is just not the case. In fact, data released by the ABS in June this year showed manufacturing in South Australia in terms of employment increased 4.1 per cent to May 2017 over the year to 75,000 jobs. This constitutes a bit under 10 per cent of total state employment. So, while we will no longer be producing whole cars, we will continue to make things and we will continue to make things well in this state. This is because the story of Holden is very much the story of South Australia.

Holden has employed thousands, on estimates tens of thousands, of South Australians over the last 50 years. Very few people would not have a family member or someone they know in Adelaide who has been employed by Holden or worked in the automotive supply chain. It is our high-tech and advanced industries of the future that will stand on the shoulders of the achievements of the automotive sector, sectors like defence, mining, medical devices, and food and beverage. The skills and knowledge of Holden automotive workers have made, and will continue to make, significant contributions in these areas and new emerging areas like renewable energy.

In terms of the Holden site, it was announced on 5 October that a preferred purchaser for the Elizabeth site had been selected, following an extensive worldwide six-month expression of interest program by Holden. Contracts are currently being finalised for the preferred purchaser to turn the site into a master-planned innovative business park, with GM Holden retaining a presence by establishing a spare parts operation on the site.

It is pleasing that the announcement by Holden of a preferred purchaser closely aligns with the government's vision for this site. Things like renewable energy and other industries such as resources, engineering and construction have been identified. It is also the case that while whole car automotive manufacturing will cease as of tomorrow, there will still be an automotive manufacturing industry in some form in this state.

South Australia is well placed, with our advanced manufacturing capabilities, to remain involved in the car industry in the future. Of course, we will remain making things for aftermarket and for spare parts. I know companies like Trident Plastics and SMR have signed contracts to supply spare parts for over a decade for Holden, and companies will also continue to supply accessories and parts for other car manufacturers.

As I mentioned before, when Holden first announced that they were going, many companies in the supply chain did not think that they were going to survive the closure. Many companies, particularly the smaller ones, were family-owned companies who had been doing things—particularly in the steel, the fabrication, the engineering and the injection moulding and blown plastics industries—for Holden for a very long time and thought that their business was going to end when Holden closed. From less than a third of companies thinking a couple of years ago that they would survive post Holden's closure, now about three-quarters of companies are continuing after whole car manufacturing ends this week.

As a state government, we pay tribute to the efforts of those tens of thousands of South Australians who have proudly made cars in this state. It has meant that we are where we are now and we can take advantage of the many opportunities that will come in the future.