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House of Assembly - Fifty-Third Parliament, First Session (53-1)
2014-11-11 Daily Xml
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Automotive Industry

Mrs VLAHOS (Taylor) (14:48): My question is to the Minister for Automotive Transformation. Can the minister provide advice on recent developments in the South Australian automotive industry?

The Hon. S.E. CLOSE (Port Adelaide—Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for the Public Sector) (14:48): I thank the member for this question and acknowledge her very keen interest in the fate of the automotive workers in South Australia. Just a few days ago, Holden workers voted to accept a final workplace agreement that settles the redundancy payouts for workers once the Elizabeth plant shuts down in 2017. However, as the relevant employee representatives have noted, these redundancy payments should never have been necessary. Had the Liberal federal government listened to industry experts, we would not be grappling with the task of transitioning thousands of workers to a post car industry future.

Members interjecting:

The SPEAKER: The Treasurer is warned.

The Hon. S.E. CLOSE: Last month was the 60th anniversary of TI Automotive Australia, a business that was established in Adelaide in 1954 to originally supply GM Holden and that has since been competing with the global vehicle manufacturing marketplace. The company supplied parts for the very first Holden to be made here in South Australia: the FJ Holden. Their contribution to the automotive industry within South Australia has played an important and critical role in the automotive supply chain, creating many good jobs for South Australians.

To be celebrating 60 years in business is testament to the quality of their executives, managers and employees, but all of that will come to an end for their Australian division with the closure of Holden in 2017. This now globally successful company will continue on as a vibrant part of the auto sector throughout the world, but sadly not here. Without question, the costs of the closure of this industry will be enormous and I witnessed firsthand the profound sense of personal loss felt by these workers at their recent 60th anniversary event.

So, it is not only the direct and flow-on economic costs but the accompanying social costs of a shift from automotive manufacturing that will have a profound impact on our state's economy and on our community. Our government took a clear policy to the election that we intend to play a leading role in the transformation of the state's economy. We believe that it is the appropriate role of government to support this transformation through the provision of targeted support for growing sectors of our economy. We are working to help businesses identify new opportunities for innovation, to focus on developing and expanding their capabilities and to compete on value.

All of this will help them occupy new niches and reach new global markets. The impending closure of TI Automotives Australian division reinforces the need for investment and through our jobs plan launched at the beginning of this year. We have committed $60 million over four years to support local companies to prepare to take action and to diversify their businesses. Is this going to be easy? Of course not. We are under no illusion that this is an extremely difficult task to assist a whole industry sector to transform.

However, we are certainly not the only community in Australia or globally to face the closure of a major industry. In the past 20 years in particular many communities have faced challenges associated with the closure of steelworks, shipyards, automotive and whitegoods plants. Was it a tough time for these communities? Of course, but they have adjusted to their new lives and to the changes within their economy and we must learn from those communities in order for us to successfully transition the sector.

Rejuvenation of a regional economy requires a multifaceted approach with a sound overarching strategy. It also requires a strong partnership between industry, government, universities and the community, focusing on building on our strengths, skilling the community and diversifying companies. Transformation of the South Australian economy will be built upon our ability to adopt new ways of doing things and how we use advanced technologies to build globally competitive high-value firms.

When you have a big economic transition such as the end of automotive manufacturing in Australia in a state such as South Australia, I believe that government bears a strong responsibility to step in and assist industry and the community through the period of transition.

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