John Murphy (Lowe, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

The latest automotive industry statistics published by the Department of Industry, Tourism and Resources may help to explain the recent sacking of 600 workers from the General Motors plant in Adelaide. The Minister for Industry, Tourism and Resources has been asleep as the proportion of locally manufactured vehicles has crashed from over 47 per cent of the total number of private motor vehicles sold in 1999 to no more than 30 per cent of the total number sold in 2006. While demand for smaller vehicles has increased, progress in the local industry has broken down under the Howard government and, since 2000, the manufacture of the most commonly sold small and light vehicles in Australia has completely ceased.

The figures show that, while the total number of locally produced and imported private motor vehicles sold increased by about 11 per cent over the period 1999 to 2006, the number of imported small to medium vehicles sold increased by 20 per cent and now makes up more than half of all cars sold. At the same time, the proportion of large cars sold declined from 38 per cent to 25 per cent of the total, an actual decrease of 35 per cent.

These figures show that there has been a significant shift in the buying preferences of the Australian public towards less expensive smaller vehicles with lower fuel consumption, a change which neither the minister nor the local manufacturers have responded to. The government seems quite unconcerned by the failure of the Australian motor vehicle industry to adapt to changing circumstances, and the minister will no doubt only realise that he has lost control of his portfolio when the last Australian-built vehicle rolls off the production line.

The minister may say that this is an exaggeration, but an analysis of the trend in his department’s figures shows that the continuing decline in the number of locally manufactured private motor vehicles will see a drop in the numbers produced from about 183,000 in 2005 to 160,000 in 2010 and the eventual end of local vehicle manufacture by 2030. Currently, the local vehicle builders’ productivity is about 18.5 vehicles built per worker per annum. This means, using the government’s figures, that possibly another 8,000 jobs will be lost from the industry by 2010 and that as many as 71,000 jobs could be lost by 2030 if the decline in local vehicle manufacturing continues.

The problem with the local vehicle manufacturers is evident: car buyers do not want to buy large, heavy gas guzzlers and yet the local industry, together with a negligent government, refuses to respond to the changing needs of Australian motorists. When asked a question about fuel supplies, the minister responded:

Do we need to find more oil? Yes, we do. But short of finding more oil I don’t know what the solution is.

Evidently the minister has not thought of taking steps to require manufacturers to produce more efficient vehicles through changes in the Australian design rules. The Leader of the Opposition recently announced a program to establish the manufacture of energy-efficient hybrid vehicles in Australia, a move that will enable Australian motorists to buy the kinds of vehicles that they actually want.

And what they want is a technologically advanced, fuel-efficient, locally manufactured vehicle with a considerable potential for export, such as the kinds of cars that are now the fastest growing section of the market. Of course, the minister will point out that there is still a market in some parts of the world for the obsolescent vehicles that the local manufacturers continue to produce, but how long will it be before the increasing price of fuel and the availability of more fuel-efficient vehicles such as hybrids brings an end to this operation?

Twelve million dollars from government and CSIRO funds combined with equivalent industry money has been spent on developing the aXcessaustralia prototype hybrid car and at least $900,000 has been spent in developing the EcoCommodore, which was unveiled in May 2000. Despite these substantial outlays the government and industry have failed to realise the potential of these cars. Not one hybrid vehicle has yet rolled off Australian production lines and none appears likely to do so under the Howard government’s incompetent administration in this area.

The appearance of new vehicle technologies, such as petrol-electric hybrids, hydrogen fuel cells and full electric cars, not only shows that the time of the inefficient and polluting internal combustion engine is nearing an end but also warns that countries that fail to rebuild their vehicle industries will face ever higher fuel import charges and the collapse of their outdated vehicle manufacturing industry. Only an Australian Labor government led by Kevin Rudd will have the ability and drive to bring about these urgently needed changes.