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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-02-29 Daily Xml
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FLEET SA

Mr SIBBONS (Mitchell) (14:22): My question is to the Minister for Finance. Can the minister inform the house of the benefits of the government's decision to introduce Holden Cruze vehicles into the South Australian fleet?

The Hon. M.F. O'BRIEN (Napier—Minister for Finance, Minister for the Public Sector) (14:22): I thank the member for Mitchell for the question, and I know that the member for Mitchell has had a longstanding association with the automotive industry in South Australia. I am pleased to inform the house that more than 1,000 Holden Cruze vehicles have now been purchased or ordered for the government fleet, and, by the end of August, there will be 1,163 Cruze motor vehicles in our fleet.

The switch to small four-cylinder vehicles will save the government an estimated $3.9 million a year in leasing, fuel and operating costs. The environmental benefits are also considerable in that, based on this number of 1,163 Cruze vehicles, there will be an estimated annual saving of 790 tonnes in carbon dioxide emissions. This is a small but important contribution towards achieving the South Australian Strategic Plan target of reducing the state's greenhouse gas emissions by 40 per cent of 1990 levels by the year 2050.

I am pleased to inform the house that there are now more than 4,000 Holden vehicles in the fleet worth a total of $120 million. There are also an additional 1,000 new Holden vehicles on order with a total value of $27 million.

Members interjecting:

The SPEAKER: Order!

The Hon. M.F. O'BRIEN: In 2011 the Holden Cruze was the fifth highest selling car in Australia and the only locally-manufactured small vehicle in the nation. I am advised that the two-litre diesel manual Cruze is the most fuel-efficient car made in Australia with a fuel economy of 5.6 litres per 100 kilometres.

Australian consumers are increasingly switching to driving small cars for economic and environmental reasons, and it is entirely appropriate that the government adopts the same logic for its vehicle purchases. The production—this is important—of the Cruze in South Australia was made possible by the co-investment of $149 billion by the federal government and $30 million by the state government.

This funding allowed Holden to introduce a second and separate production line for Cruze at Elizabeth, additional to the Commodore line. This new line has led to a substantial increase in production capacity and has incorporated the use of more advanced manufacturing technology. The addition of a second line has helped reinforce the long-term sustainability of motor vehicle manufacturing in this state and has been enthusiastically welcomed by Holden workers and their families, and I know that from first-hand contact with these families.

The co-investment by the state and federal governments allows the local car industry to reposition itself to focus on the future of small and greener cars. Not only does this investment benefit Holden, but it also supports component manufacturers and South Australian workers in Adelaide's north. By supporting GM Holden through the purchase of the Holden Cruze, we are supporting Holden's presence in South Australia because we cannot build an advanced manufacturing state if our existing capacities disappear.

Members interjecting:

The SPEAKER: Order!

The Hon. M.F. O'BRIEN: The death of manufacturing in South Australia would be devastating for the state, given 40 per cent of the economy is reliant on this sector. That is why we have identified advanced manufacturing as one of our seven primary areas of focus for action. The addition of more than 1,000 Cruze vehicles into the government fleet demonstrates the government's confidence in local car making while at the same time generating cost savings for taxpayers.

Mr Gardner interjecting:

The SPEAKER: Your time has expired. I don't need your help, member for Morialta; I do have a clock in front of me.

Members interjecting:

The SPEAKER: Order!

Ms Chapman interjecting:

The SPEAKER: Order! Member for Bragg, you hide behind the member for Waite there and shout out across the floor. I will not remove you yet, but—

Members interjecting:

The SPEAKER: Order! There is too much background noise. The member for Unley.

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