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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-04-10 Daily Xml
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GM HOLDEN

Mr HAMILTON-SMITH (Waite) (15:10): My question is again to the Premier: what will be the effect of Holden's decision to cut 400 jobs on direct and indirect jobs in the northern suburbs, where the youth full-time unemployment rate is 44.6 per cent?

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (15:11): I thank the honourable member for his question. They continue to perpetrate this misleading statistic about the unemployment rate in the northern suburbs. If you take all of the young people in the northern suburbs and look at the actual unemployment rate of the total population it is more in the order of 6 per cent or 7 per cent I think rather than the 44 per cent that has been cited.

They continue to perpetrate this misleading statistic because it suits their purpose. Of course, most of those young people are earning or in school and so it is a completely misleading statistic. Having said that, the loss of 400 jobs obviously creates its own effect and then there is the multiplier effect of the spending of those particular workers within the local economy. I don't have an estimate of that effect but it would have an effect.

In terms of component suppliers, just this morning I had the opportunity to meet with representatives of the component suppliers. The various component suppliers in South Australia don't necessarily rely upon Holden's for the whole of their work, although it's a substantial proportion of it. They also tell me that there has been an adjustment over time for the reduced volume levels that are happening in relation to Holden and so a number of them have already recalibrated their operations to the lower production levels that have been emerging.

Holden has been taking steps over time to reduce the hours of work through leave and three-day weeks and other arrangements, so there has already been an adjustment by component suppliers. Their estimate locally is in the order of dozens of jobs that might go as a consequence of this, and many of them have already factored in decisions of this sort by Holden.

I know that interstate there are estimates across the nation of between 100 or 200 jobs, but they are only estimates and they are for the whole of the nation. That is the best evidence information we have at the moment.

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