House debates

Monday, 10 October 2016

Questions without Notice

Automotive Industry

2:29 pm

Photo of Rebekha SharkieRebekha Sharkie (Mayo, Nick Xenophon Team) Share this | | Hansard source

My question is to the Minister for Industry, Innovation and Science. Minister, the demise of Australia's automotive industry is a tragedy that is causing a tsunami of job losses. The Automotive Transformation Scheme should assist in the transformation of the industry but remains underspent by $1.24 billion. Not all automotive and aftermarket-product providers can remain in the industry and we need to retool and diversify to survive. Minister, will the government change the scheme to allow automotive and aftermarket-product providers to access funding for diversification into non-automotive products, and will the minister confirm no funding cuts to the scheme before 2020, thereby saving tens of thousands of jobs?

2:30 pm

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for Industry, Innovation and Science) Share this | | Hansard source

I thank the member for her question. In fact, I met last week with representatives of all three automotive manufacturers in Australia. As the Prime Minister said, this was a very difficult week not just for the workers at Ford but I know that in South Australia there was of course the ending of the line for the Holden Cruze. The fundamental point here is that we are taking steps through a $155 million growth fund to deal with precisely the points the member raises. That fund includes $15 million to assist workers directly with their transitions and it includes a $90 million next generation automotive and other industrial advance manufacturing program, precisely the sort of work that the Prime Minister outlined and which the member is seeking. So that work is already occurring.

We recently announced a series of grants right across Victoria and South Australia for new manufacturing jobs to provide these very opportunities. We are working through the $155 million growth fund on providing opportunities for the individual workers, on assisting the regions and on assisting the sector of advanced manufacturing. I would note, for example, that in South Australia we were able to support Ellex Medical in Salisbury with $2½ million under the Next Generation Manufacturing Investment Program. It is investing in advanced equipment and systems—part of medical device manufacturing. You build on that with the $90 billion that is associated with the naval defence program—the 54 ships that the Prime Minister has outlined. These are providing real opportunities—enormous opportunities.

As difficult as last week was, one of the important things that came our from my discussions and from having visited the Ford plant at the Ford proving grounds in the area near Geelong is that there are 1,600 jobs at Ford and another 400-plus contractors that will be continuing. The future of the automotive industry in Australia is about advanced design. We are one of a small number of global providers—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Mayo on a point of order?

Photo of Rebekha SharkieRebekha Sharkie (Mayo, Nick Xenophon Team) Share this | | Hansard source

Mr Speaker, I was asking about the $1.24 billion for the Automotive Transformation Scheme, and asking the minister if he will—

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

Is the member for Mayo making a point of order?

Photo of Rebekha SharkieRebekha Sharkie (Mayo, Nick Xenophon Team) Share this | | Hansard source

Yes, on relevance. I also asked him about whether he will ensure that there are no funding cuts to the scheme before 2020.

Photo of Tony SmithTony Smith (Speaker) Share this | | Hansard source

The member for Mayo has made her point of order.

Photo of Greg HuntGreg Hunt (Flinders, Liberal Party, Minister for Industry, Innovation and Science) Share this | | Hansard source

My point is very clear. We have set out a $155 million growth fund. We are delivering that growth fund. We got ahead of the game. When the decision was made under the previous Labor government to close manufacturing in Australia, we did not sit idly by; we acted. We put in place a program for workers' jobs, for new sectors and for the region, and that is making a real difference. (Time expired)