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

They are very disruptive, that is right. I do know that he has represented vulnerable workers during most of his working life before coming into this parliament and he has had to experience and work through the sort of dislocation that he has just described in respect of Bridgestone with textile, clothing and footwear workers. You have heard from the member for Wakefield some of the human costs associated with the dislocation and closure of plants and so on. When there is a story of human turmoil, the family is often badly affected. I think his call for businesses to be as sensitive and helpful and supportive as possible should be endorsed by everyone in the chamber. I know the member for Makin would join me in making those observations and urging that we always need to be mindful of the terrible consequences for families of people losing their jobs—and he told of the loss of the dignity of work in one particular story.

In summing up the bill I point out that the bill does amend the ACIS Administration Amendment Act 2009 to correct an unintended consequence arising from the act’s link with the commencement date of the Automotive Transformation Scheme Act 2009. Under a New Car Plan for a Greener Future, the government announced additional support through the Automotive Competitiveness and Investment Scheme to smooth the transition to the Automotive Transformation Scheme. The additional support, estimated at $79.6 million, delinks the assistance rate for cars produced in 2010 from the general tariff rate and replaces it with a flat rate of 7.5 per cent. It also equalises the treatment of cars produced in 2010 for the export market with cars produced in 2010 for the domestic market. The unintended consequence, if not corrected by this bill, would be that not all the additional support would be provided, and this would diminish the ability of Australian vehicle producers to continue their recovery from the global economic crisis.

I would quickly point out, too, that figures on motor vehicle sales in Australia came out yesterday and they are quite encouraging. I would add that, in the commentary on motor vehicle sales from the National Australia Bank, it points to the influence of the small business tax break and the fact that businesses appear to be getting in on that tax break before its expiry date of 31 December.

I was asked by the member for Mayo to provide information to the parliament on when this oversight was detected and whether there was ample industry consultation. The advice to me is that the oversight was detected on 12 November and that there was ample industry consultation.

By including an application provision, the bill clarifies that the government is providing additional assistance under ACIS for motor vehicle production from 1 January 2010, not 1 July 2010, as currently provided by the act. This amendment delivers the certainty promised to this vital manufacturing industry as it moves into a new area where economic sustainability is driven by investment in innovation. I commend the bill to the House.

Question agreed to.

Bill read a second time.

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