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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-06-12 Daily Xml
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CUSTOM COACHES

The Hon. D.G.E. HOOD (15:14): I seek leave to make a brief explanation before asking the minister representing the Minister for Manufacturing, Innovation and Trade a question about a report of a local manufacturer being bought out by an overseas company.

Leave granted.

The Hon. D.G.E. HOOD: It has been reported in a Scottish newspaper (the Daily Record) overnight that Falkirk-based Alexander Dennis Ltd has taken control of Sydney-based Custom Coaches in a deal reported to be worth £25 million. Custom Coaches manufactures bus bodies and employs around 400 people at factories in Sydney and here in Adelaide.

An honourable member interjecting:

The Hon. D.G.E. HOOD: Indeed. It is reported to have annual sales of around £55 million and a 24 per cent market share or thereabouts of the Australian bus market. It has been suggested to me that our government has not had a policy of encouraging the purchasing of locally produced models where possible and that this has contributed to the decision (at least, as it has been suggested) for Custom Coaches to restructure its arrangements and, indeed, ultimately to be subject to a takeover bid. This is obviously of great concern to the future of the Adelaide operations in particular and the South Australian manufacturing base in general. My questions to the minister are:

1. Is the government aware of the sale, as it has been announced only overnight in Scotland?

2. Is it the case that the Sydney plant will continue operations but, as I am being told, the Adelaide plant may close within the foreseeable future as part of a rationalisation of production, as the rumour mill currently suggests?

3. Will the government introduce a policy of encouraging school bus operators to purchase Australian manufactured buses where possible and, indeed, South Australian where possible and appropriate?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (15:16): I thank the honourable member for his most important questions. I will refer them to the Minister for Manufacturing, Innovation and Trade in another place and bring back a response.

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