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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2013-11-28 Daily Xml
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AUTOMOTIVE INDUSTRY

The Hon. P. CAICA (Colton) (15:26): My question is to the Minister for Manufacturing, Innovation and Trade. What details are contained in the South Australian government submission to the Productivity Commission's review of the automotive manufacturing industry?

The Hon. T.R. KENYON (Newland—Minister for Manufacturing, Innovation and Trade, Minister for Small Business) (15:26): I thank the member for Colton for his question. The state government today released its submission to the Productivity Commission's review into the automotive industry. The state government has made a detailed submission to the Productivity Commission containing 10 key recommendations aimed at keeping a viable automotive manufacturing industry operating in Australia.

The state government has made it clear that we think the federal government's decision to conduct a review at this time places the industry's immediate future in jeopardy. The state government's submission highlights our concerns over the federal government's refusal to make a decision about the future of our car industry. While we do not agree with the process, which has created so much uncertainty for Holden and for their workers, this issue is too important for the economic future of our state.

I note that the opposition leader has often repeated his support for a Productivity Commission review, so I call on him today to publicly release his party's submission and spell out his plan and recommendations for the future of our car industry. The state government submission released today provides a blueprint for a way ahead for automotive manufacturing in Australia. Our submission again calls on the federal government to urgently reinstate the $500 million that it has removed from the auto industry assistance package.

Other recommendations in the submission include calls for: the federal government to continue assistance to secure a sustainable automotive industry based on its direct contribution to the economy; the avoidance of any further reductions in Australian automotive industry assistance; the federal government to continue automotive tariffs at current levels; the Productivity Commission to take into account the need for significant additional targeted assistance for affected businesses, workers and regions, and other costs in their analysis of any reductions in the auto industry assistance; and, as a matter of urgency, the federal government to pursue improved market access for Australian-produced vehicles and automotive components.

The loss of the automotive industry puts into jeopardy 13,000 jobs in South Australia and $1.2 billion to the state's economy. The future of 730 direct and indirect suppliers in our state is also threatened, many of whom are small and medium-sized businesses.

We understand that if Holden stops production at Elizabeth, thousands of jobs will go and we will lose a whole range of manufacturing skills and knowledge which will not be replaced for decades. We will also lose a valuable training ground for other areas of our economy, such as mining, defence, engineering and technology.

The automotive industry is too valuable to just throw away on a whim, and I call on the Leader of the Opposition to finally stand up for our state. I also call on the Leader of the Opposition to immediately reverse his support for cutting $500 million from automotive industry support.

The SPEAKER: Leave is withdrawn. It is obviously debate. The Leader.

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