Grant Chapman (SA, Liberal Party) Share this | Link to this | Hansard source

My question is also directed to the Leader of the Government in the Senate, representing the Minister for Innovation, Industry, Science and Research. Given the comments by Toyota chief, Mr Watanabe, that ‘we are not sure in what way we would like to use the amount’, can the minister explain what the Australian government’s $35 million grant to Toyota will be used for? Furthermore, given the minister’s failure to answer Senator Bushby’s question, on what date was Toyota advised of the $35 million grant?

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

I am sure Senator Carr is regretting not being here, because he would have been—

Opposition Senator:

I’m sure you’re regretting he’s not here!

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

No, no. It has given me an opportunity to engage with issues in the car industry. You cannot have it both ways: when he is here, you say he is a disaster and, when he is away, you say he is not. The important thing is that there is an understanding that this is a capital grant to assist Toyota in the development of a hybrid Camry in Australia. We have indicated that as part of that development we will contribute $35 million as a capital grant. The conditions around that will be negotiated, milestones set et cetera. We have announced that it will be invested in research and development, and it will be invested in retooling the plant and equipment to produce the hybrid.

It will obviously be a commercial negotiation between the government and Toyota, but it is clear also that Toyota are going to have to invest a great deal themselves in order to facilitate this project. There is going to be huge investment by Toyota in Australia in developing the hybrid Camry. I think that is a good thing. It is a commercial decision by a major car manufacturer and it is a decision to develop this in Australia. I am surprised that the opposition are so critical of a significant measure, which allows us to provide for the longer term success of the Australian car manufacturing industry in this country.

In answering the question, I direct the senator to a press release released by Toyota on Wednesday 11 June, which said:

... Toyota’s decision to build a hybrid Camry in Australia was based on various business considerations, however the government support was a critical factor in securing local production.

So I think it is very clear that this has been a decision by the government, which will provide a large investment into the future of car manufacturing in this country. We will be negotiating the terms of the contractual arrangements, but it is very much focused on research and development. It is focused on developing car capacity that is more environmentally friendly, uses less fuel, emits fewer carbon emissions and provides benefits to consumers through lower fuel costs. We think it is an important development. I think it is clear that Toyota are making a long-term commitment to the Australian car industry, and they have publicly acknowledged that the Australian government’s commitment has been a critical factor in securing that local production. I hope that the opposition decide to rethink their position and support the future of the car industry in Australia.

Grant Chapman (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. In light of the minister’s failure to answer the questions, in particular the question I asked which followed up Senator Bushby’s question regarding the date as to when Toyota was advised of the $35 million grant, firstly, I again ask the minister to answer that question. Secondly, given his reference to Toyota’s press statement of 11 June, will the minister advise whether the industry minister, his staff or departmental officials or any other minister, their staff or departmental officials held discussions with Toyota between the time of Mr Watanabe’s original statement, which I quoted from in my first question, and Toyota’s press statement of 11 June?

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

I am not sure where the senator is going with this question. All I can tell him is that there has been a decision by the Australian government to support Toyota’s decision to invest in building a hybrid Camry in this country. The announcement was made last week. Toyota have issued press releases confirming that the government’s commitment was critical to their decision to invest in Australia. As I have said, we have indicated that our commitment of $35 million is part of our broader plan to develop green cars in Australia. We think it is an important long-term commitment to the car industry and to a more environmentally friendly car industry. I think the senator ought to focus on the fact that this is an important policy decision and a very important decision by Toyota to invest in Australia.