Michael Ronaldson (Victoria, Liberal Party, Minister for Veterans’ Affairs) Share this | Hansard source

I thank Senator Xenophon very much for his question. It would probably be useful for the chamber if I go through very quickly what the government has done in relation to the ATS. Senator Xenophon is probably aware that on 10 March the $500 million was restored. From recollection, that was very much supported by the Federation of Automotive Products Manufacturers Chief executive, Richard Reilly, who said the funding ensures companies of some clarity on their business models, will assist some suppliers competing internationally to avoid the valley of death and will support the transition of the industry.

As Senator Xenophon is acutely aware, the ATS is linked to production volumes. At this stage we do not know whether the restored funding will be fully utilised by the industry or not. From recollection, the breakdown of component manufacturing and direct automotive manufacturing is about 55-45, but I stand to be corrected on that. Senator Xenophon, I know you will have some supplementaries on this. We are, of course, deeply concerned about job losses flowing from the automotive sector. The government's growth fund is targeted towards South Australia, where, you quite rightly say, the great bulk of these job losses will come from. There are a number of initiatives under the growth fund which will start to address those job losses. I am sure you are aware of them but I will go through them for you. There is the $30 million Skills and Training Program, a $15 million extension to the Automotive Industry Structural Adjustment Program, the $20 billion Automotive Diversification Program and the $60 million Next Generation Manufacturing Investment Program. (Time expired)