Ian Macfarlane (Groom, Liberal Party, Minister for Industry) Share this | Hansard source

Can I thank speakers from both sides of the House who have spoken on this bill. The Automotive Transformation Scheme Amendment Bill gives effect to the government's decision to reduce funding for the Automotive Transformation Scheme by $500 million and to terminate it on 1 January 2018, following the close of the automotive manufacturing industry here in Australia. The government took to the 2013 election a commitment to reduce the ATS by $500 million, so comments from those opposite about the government's behaviour in relation to this industry are completely untrue.

In light of the decisions made by the three motor vehicle produces to cease manufacturing—Ford Australia made that decision in October 2016 whilst the previous government was in power and we saw General Motors Holden and Toyota Australia make their decision subsequently in 2013 to end their production at the end of 2017—ATS assistance from 2018 will no longer be required for the industry. The ATS savings will in total reach $900 million. That will be directed at repairing the budget bottom line and funding other government policies and other government policy priorities. The government will continue to support the automotive manufacturing industry through the ATS. Approximately $700 million is still available under the ATS over the four financial years from 2014-15. However, ATS participants need certainty to make business planning and decisions. The passage of this bill will provide certainty to ATS participants on the level of funding assistance available for the final three years of the ATS.

Those opposite have been reeling off some spurious facts and figures in this debate.

Mr Snowdon interjecting—

The per capita figures they have been reeling off are misleading, because on a per capita basis Australia produces many fewer cars than other nations. I will now put some facts on the table, particularly for the benefit of the member for Lingiari. The Productivity Commission estimates of the automotive industry received $30 billion in government support between 1997 and 2012 through both tariffs and budgetary support. From 1997 to 2012 there were 5,186,765 vehicles manufactured in Australia. This equates to $5,784 per vehicle of government support during this period. These are cold hard facts. They cannot be disputed by those who sit opposite.

Mr Snowdon interjecting—

Member for Lingiari, I am happy to provide the proof. We are also working with the Australian industry to create sustainable opportunities in industries in which Australians can compete at a global market level. This government's focus is on the new opportunities for the future. The best way to support industries and communities in transition is to lay out a clear framework for new opportunities and new jobs. The government is focused on assisting the industry to transition from automotive manufacturing to other areas of manufacturing post-2017. That is why we established the $155 million Growth Fund to help workers find new and better jobs. That that $155 million is in addition to the $700 million that is available under the ATS going forward. We have established the fund to help workers find new and better jobs, businesses to diversify into new markets and invest in capital equipment, and regions to invest in infrastructure projects.

We believe in a future for Australian manufacturing that is integrated into global supply chains and competes by making the best use of our knowledge and skills. By transitioning Australian business into these industries where we have competitive edge we will make best use of our nation's investment in R&D. Again, to put some facts on the table, manufacturing industry makes the largest contribution to business expenditure on R&D, with $4.5 billion invested in the year 2011-12. Within that total it is the machinery and equipment manufacturing sector that makes the largest single contribution, followed by transport equipment manufacturing. This investment will pay dividends when industry and researchers collaborate more frequently, utilising the existing skills base and combining it with creativity and innovative thinking to develop new products and new markets. This will be the focus of our industry policy agenda going forward, which will target Australia's strengths and identify ways to foster national competitiveness and productivity to create sustainable long-term jobs. By focusing on our areas of competitive strength, Australia will be well placed to develop the opportunities and industries that have for us a long-term future. I commend the bill to the House.

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