Claire Moore (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Can the minister inform the Senate how the government’s new Car Plan for A Greener Future differs from previous assistance packages for this industry?

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

I thank Senator Moore for her question and I am sure she also appreciates how important the automotive industry is for Queensland. The short answer is that this plan is more comprehensive, better targeted and based on genuine partnership. It is about mutual obligation all around. No-one is being offered a blank cheque. The three car makers have committed to significant new investments. The component makers will sign up to a new code, which will see them increase their capabilities, exports and R&D to make adequate provision for worker entitlements and to bring smaller suppliers into the global supply chains. All program assistance is predicated on environmental, innovation and production milestones being met. The government will work closely with the component sector to ensure it remains strong and sustainable.

The automotive industry structural adjustment program will provide $116 million to facilitate consolidation by helping smaller firms to merge. This will enable the industry to achieve global scale and retain core capabilities. The companies that have merged in the consolidation process will be more resourceful and more resilient. The automotive supply chain development program will provide $20 million over four years to extend the component sector’s capabilities and improve supply chain integration.

The component companies will also have access to the diagnostic and business improvement services of Enterprise Connect. We want to work proactively with these firms to sort through any difficulties that may arise, before they turn into major problems. Overall, we expect the industry to invest $7 for every dollar it receives in plant and equipment, $3 for every dollar it receives from the Green Car Innovation Fund and $1 for every dollar it receives from general R&D. The government will establish an Automotive Industry Innovation Council to keep a close eye on how the industry is going and how the plan is going.

Senator Minchin made the point some years ago that economies of our size would kill to have a car industry like ours and we would be mad to do anything to put it unduly at risk. What a shame it is that the member for Warringah did not appreciate that simple proposition. Mr Abbott has asked us for an assurance that we are getting good value or a good return for the money that we invest. I am here to give the member for Warringah that assurance. We have secured concrete investment commitments and we have ensured that there are concrete structural adjustment commitments from component makers, and we expect the community to invest in a plan to yield a further $16 billion worth of private investment.

The member for North Sydney, who obviously has not been in touch with a car worker for some time, seems to have failed to understand how important this industry is to Australia—and how important the German industry is to the German government, which has invested €$12 billion to assist the German automotive industry. He has also failed to understand why the United States has already advanced a package of $25 billion to assist their industry and why it is that President-elect Obama has made it clear that the automotive industry is the backbone of manufacturing in the United States. It is a pity that the member for Warringah and the member for North Sydney have failed to understand the international lessons on why the automotive sector is so important to the social and economic fabric of this country.

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.