Senate debates

Tuesday, 25 November 2014

Committees

Economics References Committee; Reference

3:40 pm

Photo of Mitch FifieldMitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Hansard source

The decisions to cease manufacturing in Australia by 2016 at Ford and by 2017 at Holden and Toyota were made entirely by the motor vehicle producers themselves. Both the Mitsubishi and the Ford decisions to close manufacturing operations in Australia were made under the previous Labor government. All three remaining producers have indicated that the level of government support was not the reason for their decision to cease manufacturing cars in Australia. The federal government has continuously worked with industry to make the transition for workers across the sector as pain-free as possible. The Productivity Commission estimates that the automotive industry received $30 billion in government support from 1997 to 2012. There were five million vehicles manufactured in Australia; that equates to over $5,000 per vehicle of government support during this period. Despite this substantial assistance, the industry has been unable to survive in a highly competitive global environment. Australia's manufacturing industry is moving towards new opportunities in new industries.

Question agreed to.

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