House debates

Thursday, 2 October 2014

Bills

Automotive Transformation Scheme Amendment Bill 2014; Second Reading

11:06 am

Photo of Jill HallJill Hall (Shortland, Australian Labor Party) Share this | Hansard source

I congratulate the member for Scullin on a fine contribution to this debate. He touched on key areas: the areas that are really synonymous with Labor's position when it comes to this Automotive Transformation Scheme Amendment Bill 2014.

The Abbott government was elected as a government that was going to create one million new jobs. The thing that we have seen since the government was elected is that unemployment has risen to over six per cent, and we have seen that over 200,000 jobs are set to go in the automotive industry. That is absolutely unacceptable.

This government is a government of ideologues and it is a government that is driven simply by a desire to please its friends in big business. It is a government that has no vision and no plan for jobs into the future. The only plan that the government has for jobs is to see those jobs going offshore.

The particular legislation we have before us today, the Automotive Transformation Scheme Amendment Bill 2014, amends the Automotive Transformation Scheme Act 2009. It gives effect to the Abbott government's $500 million cut to the ATS over 2014-15 and right up until 2017-18, which was announced as part of the 2013-14 Mid-Year Economic and Fiscal Outlook. It has the effect of terminating the ATS in January 2018 and cutting a further $400 million from the ATS, which was announced in the budget. This really demonstrates the government's lack of vision and lack of commitment to jobs within Australia. This scheme provides assistance in the form of a co-investment for the production of motor vehicles and engines and for investment in eligible research and development, plant and equipment. Now we have seen this government's lack of vision when it comes to research and development. The fact is that it does not value research and development. The fact is that its answer to new ideas, new investment, is to move away from supporting industries where with a little bit of vision, a little bit of foresight, a little bit of investment, these industries could flourish. It is not only the automotive industry; it seems to be a policy across the board that this government does not support research and development and will not invest in it.

We on this side of the House strongly oppose this legislation. As I mentioned a moment ago, it will cut $500 million in funding from the ATS between now and 2017, and terminate the scheme at the end of 2017. It really spells disaster to 200,000 Australian men and women. These are Australian men and women who rely indirectly on the automotive manufacturing industry for their jobs. This legislation is about jobs. This legislation is about Australians no longer having jobs—many of whom have worked for 20 years and longer in the industry. These people are highly skilled workers, workers who have developed these skills over a long period of time, and many of those skills are not transferable. Once the car industry closes down it will be difficult for them to retrain, it will be difficult for them to find new jobs. Yet this government says it is committed to creating one million new jobs. This is something that I find unbelievable and its action in relation to the ATS is unforgivable.

It is critical that governments do not pre-empt the closure of the industry and risk early closure of firms before 2017 by reducing available funds. If this happens it will exacerbate the situation that exists at the moment, that this government has created. This government really shows how its ideology pushes its policies. As the member for Scullin said, the opposition supported the government when it came to providing support for rural industries. We know that farmers struggle in times of drought and we can see the benefit to our Australian economy by providing them with support. But unfortunately those on the other side of this House cannot see the benefit of Australia having a car industry, cannot see the benefit of Australia having a manufacturing industry. The shipbuilding industry is another example of this government's failure. It is sending contracts for submarines overseas rather than having them built here in Australia. It is about the—

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