Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Industry and Innovation, Senator Lundy. What is the minister's reaction to comments by the managing-director of General Motors Holden on the uncertainty facing the auto industry due to the opposition's lack of a policy?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

I thank Senator Gallacher for his question. Mr Devereux is obviously expressing the problem I described in the Senate on Monday. The opposition's formally stated policy of slashing $1.5 billion in support for the auto sector is creating great uncertainty right across the industry. On top of that, we know that there is considerable conflict within the opposition as we have seen a variety of messages from Liberal Party representatives. For example, in September Ms Mirabella stated that the coalition did not support Ford and Holden payments and earlier this year Mr Abbott, the Leader of the Opposition, made it clear that all funding for the automotive sector will cease in 2015 in line with the Howard government's plans. He said:

…the quantum of support for the car industry should be that committed by the Howard government and that remains our policy.

No wonder the car industry is at a loss to know what the opposition's policy is. The coalition's policy for the car industry is that of a job wrecker. It would jeopardise around a quarter of a million jobs in the auto manufacturing sector. It is the height of hypocrisy for Mr Hockey and Ms Mirabella to lament recent job losses at Ford while at the same time advocating a policy that would destroy the industry.

The relentless negativity of the opposition has manifested itself in this job-wrecking stance, even when confronted with the facts of the matter and the job losses. This is a great example because it exposes the shallow spin by the opposition, as we heard reported in the press this morning, where they dream up a policy in the party room about jobs, but when the rubber hits the road they are going to wreck the automotive sector because they are going to cut the funding. If they were serious about policy they would support our $5.4 billion new car plan. (Time expired)

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I have a supplementary question. Can the minister advise the Senate what the government is doing for the car industry?

Honourable Senators:

Honourable senators interjecting—

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

Order! When there is silence on both sides we will proceed. I remind senators that debating across the chamber at this stage is disorderly.

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

I am happy to remind the negligent opposition what a responsible government looks like. Labor knows a modern economy needs a strong and viable manufacturing sector. We know the industry is facing difficult times.

Honourable Senators:

Honourable senators interjecting—

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

Order! Senator Lundy, resume your seat. I will proceed with question time when there is silence.

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

It is obviously a sore point across the chamber. We know the industry is facing difficult times, and Labor is committed to working with the auto sector to ensure it has a strong future. I have already mentioned our $5.4 billion new car plan, and we are investing in improving the productivity and competitiveness of the sector. Holden has indicated publicly that without our $215 million co-investment it would have closed all of its design, engineering and manufacturing operations in Australia. Our government's investment has ensured Holden will stay here for at least a decade and support tens of thousands of jobs directly and thousands more indirectly. (Time expired)

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, my second supplementary question is: can the minister outline the implications of withdrawal of support for our car industry?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

I am very happy to do that. We know the opposition is all over the place on this issue and it is creating huge uncertainty in the auto sector. The Labor government knows that the automotive manufacturing industry is an integral part of our economy. It pays the wages for about 250,000 Australians directly and in related manufacturing and service industries.

It is a cornerstone of the wider manufacturing sector, which employs around one million Australians.

Honourable Senators:

Honourable senators interjecting—

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

Order! Senators Ryan and Wong, it does not help me to hear the answer when you are continually interjecting across the chamber. Order on both sides!

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

I am trying to answer a very serious question but given the puerile nature of interjections from the opposition it makes it very difficult. As I was saying, there are one million Australians whose jobs are at stake and the opposition is putting those jobs at risk by failing to support a bipartisan approach to our new car plan for the Australian automotive sector. As recently as September, the coalition said they did not support the Gillard government's assistance to Ford and Holden. Now they say they might, but they will not commit. They could commit today if they really wanted to. (Time expired)