Craig Emerson (Rankin, Australian Labor Party, Minister Assisting the Finance Minister on Deregulation) Share this | Hansard source

I move:

That the amendment be disagreed to.

The government earlier amended the Automotive Transformation Scheme Bill 2009 in the House of Representatives to address concerns over the transparency and accountability of the scheme. This government’s amendment strikes an appropriate balance between transparency and openness for the taxpayer and the protection of commercially sensitive information for the automotive industry.

The Senate amendment does not adequately consider the detrimental effect that disclosing individual payments would have on the entire automotive industry. The Australian automotive industry is highly integrated. The Senate amendment has the potential to distort commercial negotiations and to compromise future investment decisions. The Senate amendment could disadvantage smaller Australian based component manufacturers.

The industry advises that the Senate amendment could compromise the decision-making process within parent companies with respect to future investment and research and development activities within Australia. It could disadvantage the ability of Australian vehicle manufacturers to compete for large-scale projects with other subsidiaries located all over the globe. The Senate amendment may also have the unintended consequence of discouraging investment and innovation, especially within the supply chain.

The Rudd government is committed to openness and transparency, and that is why the ATS regulations will allow the publication of individual assistance, subject to the minister’s discretion. This will replicate the reporting provision currently in section 115A of the ACIS Administration Act 1999. The Senate amendment also requires the tabling of a separate report on the details of assistance provided under the scheme. The department’s annual report is the appropriate mechanism for disclosing the total amount of capped and uncapped assistance under the ATS and the industry’s progress in meeting the object of the bill.

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