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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-02-15 Daily Xml
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Ministerial Statement

GM HOLDEN

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Minister for State Development) (14:04): I seek leave to make a ministerial statement.

Leave granted.

The Hon. J.W. WEATHERILL: Of all the companies which have been associated with the manufacturing history of our state, there has been none more central to our development than Holden. Ever since the Elizabeth plant opened with the strong support of Sir Thomas Playford, Holden has been the cornerstone of our state's industrial strength and has employed thousands of workers in Elizabeth. But more important than Holden's contribution to history is its potential as a foundation for our state's advanced manufacturing future.

Innovative South Australian automotive components manufacturers—including many at the Edinburgh Park site directly opposite Holden—rely upon the competitive advantage of having an automotive plant right on their doorstep, as well as a cluster of skills and capabilities which would be permanently lost if Holden were to cease manufacturing.

Given the discussions that the government has been having with General Motors about future co-investment at the Elizabeth site, the Department for Manufacturing, Innovation, Trade, Resources and Energy commissioned a report from Associate Professor Barry Burgan, the head of the business school at the University of Adelaide, on the contribution that Holden's operations at Elizabeth make to our state's economy. His report is unequivocal. Associate Professor Burgan says:

In summary therefore, the closure of Holden would, it has been estimated, cause the loss (relative to the contribution in 2011) of between 6,000 and 16,000 jobs in the state, reduce the value of economic activity by between $0.5 billion and $1.5 billion and a decline in state taxation revenue of between $25 million and $83 million.

Further, Associate Professor Burgan warns:

Given current economic conditions, and competitive circumstances in the manufacturing sector, it could be considered that the higher of these estimates is a distinct possibility.

Associate Professor Burgan's report makes crystal clear the economic benefit to the state from car making. As I have said many times before, there will be co-investment from the government to continue car making in this state. We have received Holden's final submission and it is currently under consideration. Following consideration by government, the proposal will be considered by the board of General Motors in Detroit. The government will provide more information once the proposal has been considered by the board.

The benefits which Holden provides to the state are now clear. The level of co-investment will become clear following the consideration of the proposal by General Motors' board. Now is the time for those opposite to get behind car making in South Australia, rather than risking the loss of skills and capabilities which are so vital to this state.

Members interjecting:

The SPEAKER: Order!

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