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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2015-02-10 Daily Xml
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Automotive Industry

The Hon. A.L. McLACHLAN (16:18): I seek leave to make a brief explanation before asking the Minister for Manufacturing and Innovation and Automotive Transformation a question regarding the impact of Holden's closure in 2017.

Leave granted.

The Hon. A.L. McLACHLAN: May I add my congratulations to the minister on his elevation to cabinet. It was reported in The Advertiser on 29 September 2014 that the Workplace Futures Survey report found that 33 per cent of northern Adelaide businesses reported at least some risk of closure as a result of the auto industry shutdown. The study found that the greatest blow will be suffered by sectors outside manufacturing, with more than half of local retailers expecting profits to nosedive.

Business SA chief, Nigel McBride, has warned that, in an already challenging retail environment of high rents and growing online competition, northern suburbs retailers are facing tough times. My question to the minister is: given that the government is providing assistance packages to manufacturing businesses, what strategies has the government put in place to assist businesses outside the manufacturing sector that will likewise be affected by Holden's closure in 2017?

The Hon. K.J. MAHER (Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Aboriginal Affairs and Reconciliation) (16:19): I thank the honourable member for his question and his interest in this area; however, I am surprised that he wants to ask a question about the closure of Holden. I am exceptionally surprised that he wants to ask the state Labor government about the closure of Holden and how that has come about. I think a very brief—

Members interjecting:

The PRESIDENT: Order! There is one member on his feet and he has the floor. Please give him respect and let him speak in silence.

The Hon. K.J. MAHER: At the end of 2013, Treasurer Joe Hockey and then acting prime minister, Warren Truss, launched an extraordinary attack on Holden in federal question time; they effectively goaded Holden into closing. The Treasurer said that it was time for Holden to come clean and be fair dinkum with the Australian people over its future; 'Either you're here or you're not,' Mr Hockey had as a throwaway line. Holden announced it would be ending its manufacturing business in Australia the very next day. The federal Liberal government dared Holden to leave and it got what it dared them to do. So I am very surprised, and it is a very heroic move by the Hon. Andrew McLachlan to bring up the topic of the closure of Holden.

The Labor Party in South Australia took a comprehensive policy to the last election, a detailed Our Jobs Plan, which set out $60 million of support for automotive supply companies—

The Hon. J.M.A. LENSINK: Point of order. Is the minister actually reading from a briefing paper in his folder?

Members interjecting:

The PRESIDENT: The minister has the floor.

The Hon. K.J. MAHER: As I was saying, the state Labor Party took to the last election a jobs plan which set out $60 million of support for automotive supply companies, workers and families as well as programs to accelerate other industries to fill the enormous gap that would be left by the automotive industry. In contrast, the state Liberal Party took to the last election a policy for a $2 million think tank; no new money for the industry like nearly every other area, but 'We'll have a look at it after the election and see what might happen.'

Our Jobs Plan also called on a reasonable contribution from the commonwealth government, given the $900 million that the commonwealth government was eyeing off in the Automotive Transformation Scheme. After goading Holden to close—and it took up the dare of the federal Liberal Party—in the 2014 Mid-Year Economic and Fiscal Outlook savings measure, the federal government sought to cut assistance under the Automotive Transformation Scheme by $500 million from 2014-15 to 2017-18. Then, in the 2014-15 budget the federal government proposed a further $400 million cut to the Automotive Transformation Scheme. These amendments would reduce the financial assistance—

Members interjecting:

The PRESIDENT: Order! Go ahead.

The Hon. K.J. MAHER: —to the Australian automotive industry by $900 million and terminate three years earlier than scheduled. This is the plan the Liberal Party has. The South Australian government—quite rightly—did not support the almost billion dollars in funding cuts and early termination of the Automotive Transformation Scheme. Very heroically, Labor members in the Australian Senate, with the help of very sensible crossbenchers, voted to block the proposed amendments and to proceed with the 12-month inquiry into these unreasonable cuts to the Automotive Transformation Scheme.

I will—and this Labor government will—stand side by side with manufacturing workers and workers in other industries to fight the cruel attack being inflicted not just on the automotive industry but on the shipbuilding industry and the submarine industry, and if the heroic Hon. Andrew McLachlan wants to ask further questions I would be quite happy to outline the views we have on the submarine industry as well.

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