Anne Ruston (SA, Liberal Party) Share this | Hansard source

There is absolutely no doubt that the car industry is a hugely important industry in South Australia. And I do not think that there is anybody in this place, no matter whose party they belong to, who would argue with that at all. I am sure Senator Farrell can remember the sad day when Mitsubishi closed its doors in South Australia. It was a terrible day for South Australia, and certainly a similar decision by GMH would be a devastating outcome for the state. South Australia is a beautiful state, although it has a very small population.

Can I just take issue with some comments that have actually been made by the South Australian Premier in relation to this issue? This morning I was listening to the debate, as I am sure everybody else was, about this particular issue and Premier Weatherill came out and said that if GMH closes it will be the first step towards turning South Australia into being nothing more than a quarry or a farm. I have to say that as a farmer in South Australia I take great offence that he would belittle the farming sector in South Australia and the mining sector in South Australia, which have proved to be the backbone of the South Australian economy for ever and ever. I think that we really do need to recognise that the farming sector and the mining sector have sustained our economy through some pretty tough times recently. For Premier Weatherill to say that, I was very disappointed.

The other thing I would like to point out is that much of the downward spiral of GMH—the loss of jobs and the shrinking number of cars being produced in South Australia—have occurred on Premier Weatherill's watch. I bring to the attention of the Senate that this morning the difference in cost of manufacturing a car was noted—and this came out of the GMH figures: it is $3,750 more expensive to produce an average Holden in South Australia than it is overseas. So let us have a look at some of the costs that contribute to why a car would cost $3,750 more to manufacture in South Australia than it would in an overseas destination.

Since Labor came to government in South Australia in 2002 electricity prices have increased by 137 per cent, gas prices have increased by 126 per cent, the price of water in South Australia has risen 227 per cent, payroll tax has almost doubled, land tax has tripled and land tax and stamp duty are currently 40 per cent above the national average. So I think that if you want to sum that up into one sentence, South Australia is the highest-taxed state in the nation. How on earth can an organisation like GMH hope to start on an even footing when they are already starting behind the eight ball because of the amount of additional burden that is placed on them by doing business in South Australia? This is directly as a result of the actions and policies of the Labor government there.

We then look at some of the other costs to manufacture in Australia that we might like to start doing something about. It would be remiss of me not to mention the impact of the carbon tax. I notice that Senator Xenophon also raised this issue in some of his media statements about removal of the carbon tax and the direct positive impact that would have on the cost of manufacturing in Australia.

Another great cost to South Australians trying to do business, of course, is our excessively high WorkCover and all the red and green tape that we encounter. But one of the most specific things—and I think this government has every right to question the validity of some of the comments from across the chamber—is what were those opposite thinking was going to happen to the car industry when they decided on the FBT changes prior to the election? Immediately after that decision it was made very clear to all and sundry that it was going to have an immediate and negative impact on the car industry. It was estimated at the time that it could have the effect of reducing the number of cars sold by 100,000. Of course that is going to have a major and immediate impact on the car-manufacturing industry in that state.

The urgency motion that is before us today is for the government to make an urgent offer of co-investment to GMH. Can I reiterate that as a proud South Australian I certainly want to see the car industry in South Australia continue. As I said, no Liberal member, no National member, no Labor member, no Green member and, I am sure, Senator Madigan would disagree. We have just heard from Senator Xenophon—every single person wants to see the car industry continue in South Australia. But where I perhaps differ from them and the comments made by those opposite is that I believe there is a different way to achieve it from just injecting money.

If we can decrease the burden on industry and the cost of doing business, we have a tick. We can ensure that the company that is seeking assistance is operating as efficiently as possible—certainly, has GMH looked at itself to decide whether it is actually operating at its most efficient before it puts its hand out and asks the government to provide additional funding? If we want to keep the car industry in Australia, or any other manufacturing industry for that matter, we need to put incentives in place so that they can stay. Just handing over money with no strings attached will do nothing more than delay the inevitable. Just remember the last time money was given to GMH—they put off 400 people only a matter of a few months later.

Question agreed to.