Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

I thank the honourable member for his question. Again I would commend to those opposite some good news for the Australian economy in the midst of a global economic recession, and it goes to statements today by the CEO of Holden Australia concerning the future of the company in this country. This is important for Australia. It is important for manufacturing in Australia. Today I met with the Holden CEO, Mark Reuss, and he had already had earlier discussions with the industry minister, Senator Carr. The CEO of Holden has advised that Holden’s operations will be unchanged by announcements in the United States by General Motors. Specifically, he has advised that Holden will be part of the new GM. He has advised that Holden will not be included in the US filing under chapter 11. He advised that there will be no direct impact on local design, engineering and manufacturing operations. He advised that technology improvements to the Commodore and the introduction of the second car line remain on track. He advised there will be no changes to Holden employees and supplier payment arrangements and he advised there will be no changes to Holden dealer and warranty arrangements. I would say this is good news for the Australian economy—good news at a time when we have seen such an assault on the automobile industry worldwide as a direct product of the global economic recession.

We cannot underestimate the significance of developments in the United States in the auto industry. General Motors’ decision to file for chapter 11 bankruptcy is a powerful symbol of the challenges now facing the global economy. This is the single largest industrial bankruptcy in US history. The actions of the Obama administration to support the industry are unprecedented. But Holden here in Australia has not been caught up in these US developments. Holden is considered an A-list asset in the General Motors group. It is in contrast to speculation in Australia that this would directly wipe away Australian motor vehicle manufacturing, particularly through General Motors Holden. Holden has forged its path through difficult circumstances, and the company’s leadership and its employees have worked together to achieve this. They have also done so in direct partnership with the Australian government.

The Australian government last year, in the midst of great criticism on the part of those opposite, launched a $6.2 billion new Green Car Plan providing certainty for the sector right out for 2020. This was government acting ahead of the curve. This was government acting at a time—

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