Tim Watts (Gellibrand, Australian Labor Party) Share this | Hansard source

I have a number of questions for the minister about the impact of the budget on the auto manufacturing sector. I do thank the minister for inviting me to attend with him the Altona Toyota manufacturing plant in my electorate. I genuinely thank him for that. I am just regretful that future invitations will not be able to be extended for members for Gellibrand, as the Toyota plant will be ceasing operations in future as a result of the actions of this government.

A recent report from Adelaide University stated that Australia was expected to suffer a fall in national employment of around 200,000 as a result of the planned closure of auto manufacturing between now and 2017 and that the greatest job losses will be in Victoria, with an estimated decline of close to 100,000 jobs. How can the minister justify over $1 billion in cuts to the automotive industry in the budget when the government is well aware that these cuts are putting hundreds of thousands of Australian jobs at risk?

The automotive firms and component manufacturers have repeatedly advised the government of the serious consequences of cutting funding from the Automotive Transformation Scheme at what is an already difficult time for manufacturing and supply chain workers. So why is the government cutting over $900 million from the Automotive Transformation Scheme when the minister is well aware that, if passed, these cuts will intensify the financial pressure on the hundreds of firms in the supply chain, firms which have already factored ATS funding into their long-term business and investment decisions?

According to the Prime Minister's announcement, the government's so-called $155 million Growth Fund has been set up for firms and employees in South Australia and Victoria affected by the closure of local manufacturing operations. In April this year an independent study projected that auto closures would result in over 32,000 jobs lost in New South Wales, over 30,000 in Queensland, as well as over 11,000 in WA and almost 500 in the Northern Territory. This is on top of the 23,000 jobs at risk in South Australia and almost 100,000 jobs in Victoria. Economic modelling forecasts a negative annual shock of $29 billion or more by 2017.

Can the industry minister please outline how this so-called growth fund will have any chance of helping auto workers in New South Wales, Queensland, WA and the NT, not to mention how, with just $100 million in Commonwealth funding, this program will have any impact on the 200,000 jobs at risk on a national level.

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