Senate debates

Tuesday, 3 December 2013

Questions without Notice

Automotive Industry

2:53 pm

Photo of Mehmet TillemMehmet Tillem (Victoria, Australian Labor Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Industry, Senator Ronaldson. I refer the minister to the Australian Industry Group submission to the Productivity Commission inquiry on the auto sector and the comments by their CEO, Innes Willox, who said:

… policies and funding commitments need to be predictable and, above all, stable and we believe the $500 million commitment should be honoured.

Will the government listen to business and give the industry the certainty it needs by scrapping the disastrous cuts to auto?

Government Senators:

Government senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! Before I call the minister, the debate going on behind him is disorderly. I remind honourable senators I am waiting for Senator Ronaldson to have the call.

2:54 pm

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

I thank the honourable senator for his question. I am somewhat surprised that, having moved from the nation's great job wrecker, Senator Carr, the question has been flicked off to the new senator from Victoria.

Photo of Jacinta CollinsJacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | | Hansard source

Is the problem that you're briefless?

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

No, it is a very large brief, actually. I'm happy to give it to you in three years time!

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Senator Ronaldson, ignore the interjections and address the chair.

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

I dare say, Mr President, it is probably the largest brief here. Putting that to one side, I just want to draw to the honourable senator's attention—I know that he has recently arrived—and remind him of his party's changes to the fringe benefits tax which the Australian automotive industry said would have cost 100,000 jobs.

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Senator Ronaldson, resume your seat. Senator Ronaldson is entitled to be heard in silence.

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

I do have a brief here that Senator Carr might not be quite as keen for me to read, which I am happy to talk to. What I will say to the honourable senator is that the fringe benefits changes that you proposed were going to cost $100,000 in annual production for the automotive industry. I will just go through some figures with your colleague from Victoria, the great job wrecker of the automotive industry in this country. These are some very interesting figures. Automotive industry employment averaged 45,007 people in the four quarters to August 2013, down from 50,376 in the same period in 2012. Just out of interest, Senator— (Time expired)

2:57 pm

Photo of Mehmet TillemMehmet Tillem (Victoria, Australian Labor Party) Share this | | Hansard source

Mr President, I have a supplementary question. Will the minister admit that taking away $500 million in legislated support creates a major issue of sovereign risk when it comes to new investment in Australia?

Government Senators:

Government senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order, on my right!

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

There are some very golden rules in here, Senator. Although you might be new, you do not have to take a dog's breakfast of a question like that. The simple fact is that when you go back and reflect on what the Australian Labor Party has done to the car industry, the carbon tax which added about $400 to $500 on the cost of a car, and when you look at what has been withdrawn by Senator Carr and others—

Honourable Senators:

Honourable senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! If people wish to debate this question the time is after 3 pm. Senator Ronaldson is entitled to be heard in silence.

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

Thank you, Mr President, it is very hard to concentrate. Can I just say to the honourable senator: at close of business before Christmas, you, and those beside you, have got an opportunity to deliver to the car industry, to deliver to the mining industry, to deliver to Australian industry the best Christmas present you can give them, and that is to allow the abolition of the carbon tax. We are sick and tired of the crocodile tears from Senator Carr, the great job destroyer— (Time expired)

2:58 pm

Photo of Mehmet TillemMehmet Tillem (Victoria, Australian Labor Party) Share this | | Hansard source

Mr President, I have a further supplementary—considering the size of the minister's brief. Given that we already know, thanks to many published studies and evidence reiterated at the Productivity Commission inquiry, the value of Australia's automotive industry, the comparative amount of government assistance provided against international benchmarks, the level of support Australian industry requires and the impacts of any failure in the industry, will the minister admit that the true purpose of this inquiry is to provide an alibi for government inaction?

2:59 pm

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

That is quite extraordinary, quite frankly—another wasted supplementary. I will tell you the impact that the previous government policy has had on the Australian automotive industry. I will just go through this.

Photo of Claire MooreClaire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | | Hansard source

Mr President, I rise on a point of order. My point of order is on relevance. I know Senator Ronaldson is moving to give us a list of figures, but his premise seems to be that it is going to be passed, and he is not giving a response to the question, which was: what was the reason for the review?

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

The minister has been going for 15 seconds. There is no point of order at this stage. The minister has 45 seconds remaining to address the question, and I ask the minister to now take that opportunity.

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

I will just say this to the honourable senator in relation to the Productivity Commission and the future of the Australian car industry. You may or may not be aware of this, Senator, but I will just go through the terms of the inquiry. The broad terms of reference include examination of the industry's structure, productivity, investment, profitability, international competitiveness, exports, workforce structure and practices and long-term sustainability. This government is committed to the sustainability of Australian industry. This government will not do things like impose a mining tax and a carbon tax which are going to destroy employment in this country. (Time expired)

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.

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