Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the minister for Minister for Innovation, Industry, Science and Research, Senator Carr. Can the minister advise the Senate on recent activities supported by the government’s—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Pratt, stop. I cannot hear the question. Senator Pratt, continue.

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Mr President, I value the opportunity to ask this question. Can the minister advise the Senate on recent activities supported by the government’s Green Car Innovation Fund? How is the fund benefiting automotive firms, including those in Western Australia? What environmental benefits and economic benefits can Australia expect from the government’s actions to support investment in automotive innovation?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I thank Senator Pratt for her question. A Perth company, Orbital Australia, has been awarded a $440,000 grant from the Green Car Innovation Fund to develop its carbon-cutting engine technology for the Chinese auto maker Changan Automobile. Orbital will carry out this work, under the grant, in Perth. This is great news for Western Australia and great news for the Australian auto industry. It is the latest in a series of success stories for the government’s A New Car Plan for a Greener Future. This is a plan which is transforming the automotive industry, and it has put it on a more environmentally and economically sustainable footing. It is also based on the principles of partnership and mutual obligation.

Consistent with those principles, Orbital will more than match the grant with investment of its own. That support will be provided through Orbital’s development of its FlexDI engine management and combustion system. The air-assisted direct injection technology has the potential to deliver best-in-class fuel economy for passenger cars and other applications. It will be applied to Changan’s four-cylinder petrol engine to produce a car that complies with the new Chinese fuel economy standards.

Changan is China’s fourth largest auto maker, with sales of 1.8 million vehicles last year and projected sales of 2.2 million vehicles this year. The partnership between Orbital and Changan Automobile is an important development in Australia’s deepening relationship with the world’s biggest car maker. (Time expired)

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister please inform the Senate how the automotive industry and other branches of manufacturing have responded to the global recession?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

The automotive sector is the cornerstone of Australian manufacturing, and manufacturing is the cornerstone of the Australian economy. The global recession hit our manufacturing sector hard, and companies and workers have responded creatively to minimise the loss of skills and capacity. The industry is now in a position to take advantage of the recovery and new opportunities in major markets like those in China.

The Australian Industry Group’s Performance of Manufacturing Index hit 54 last month. I am sure senators would be aware that a reading of above 50 indicates that the activity is actually expanding. The index has been in positive territory for six of the last seven months. While manufacturing still faces many challenges, over the past 18 months it has given us a vivid demonstration of its resilience, its capacity for innovation and its continuing value to the Australian economy. (Time expired)

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister please advise the Senate of what other evidence there is that the automotive industry and the economy more generally are recovering? How has government policy contributed to this recovery?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

There are many signs of recovery. One is that 2009 ended strongly for the automotive sector, with record numbers of vehicles sold in December. Vehicle sales in January and February, including sales of Australian-made vehicles, were well up on the same month last year. Our economy grew 0.9 per cent in the final quarter of 2009 to be 2.7 per cent higher throughout the year—an outcome that even those opposite would surely envy and which is certainly the envy of the developed world.

Business confidence is rising. One measure of this is the overwhelming industry response. For instance, the North West and Northern Tasmania Innovation Investment Fund received some 126 applications from firms eager to invest in that critical region. The successful applicants will be announced soon. So all of these indicators point to one conclusion: the government’s stimulus package is working. (Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.