Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) recognises the long-term business investment General Motors has made in Australia over 72 years and the impact its decision to withdraw from the Australian market will have on more than 200 Holden dealerships across Australia;

(2) asks that as General Motors terminates Holden sales in Australia that it demonstrates the respect the Holden brand deserves;

(3) acknowledges General Motors has been the beneficiary of more than $2 billion of Australian taxpayers subsidies;

(4) recognises the potential job impact on Holden dealerships who employ around 9,000 people, including sales people, service technicians, finance and insurance professionals and back office functions and calls on General Motors to ensure that adequate compensation is offered to Holden dealers around the country who have invested significant capital in showroom facilities, service and repair equipment, stock and parts and ensure also that dealerships have assistance for redundancy payments;

(5) notes that when General Motors ceased vehicle and engine production in Australia in 2017, the company committed to retaining 1000 direct staff plus 6000 people across the 200 strong national dealer network; and

(6) further recognises there are 1.6 million Holdens currently on Australia's roads and customers deserve to have confidence they will have ongoing support from General Motors in servicing and spare parts for the future.

The departure of General Motors-Holden from Australia is a very marked point on the calendar. I acknowledge that times change and businesses adapt and come and go, and they have a right to do so. They have a right to make decisions on their owner's behalf. But, in doing so, they need to act in a fair way. Sadly, General Motors are not.

In 2017, when they closed their engine plant, Holden assured dealerships Australia-wide that they were here for the long haul: 'Plenty of models to rebrand, and great value in the Holden name. Have faith.' Dealers took that at face value; they were right at the start of a new five-year franchise agreement. Then General Motors changed its mind, and, in February, announced it was totally withdrawing from right-hand-drive vehicles worldwide. This left our dealers in Australia high and dry. Fancy showrooms are demanded by Holden, signage is demanded by Holden and workshops with high-technology equipment in them are demanded by Holden—all to service Holden vehicles, but for these dealerships there will be no Holdens to sell.

There are six dealerships in Grey, and all are affected. I've spoken to a number of others as well, including single franchise dealers. They have an enormous cloud over their future, particularly the single franchise dealers, through no fault of their own. They are victims of a decision made in Detroit.

Holden were offering $1,500 a car on predicted sales over the next 2½ years to the end of the five-year franchising agreement, based on the sales of the previous 12 months. This is manifestly inadequate. The industry engaged KPMG to evaluate a figure, and they recommended $6,500 a vehicle. I ceded ground to GM in the beginning, saying they needed to make decisions on what was best for the company. But in Australia we believe in a fair go, and their proposal does not represent that.

Dealers have a lifetime of investment, based on the belief that this brand was here for the long haul. It is based on exactly what the company told them—guaranteed them, even. Many on my patch have made significant investments, millions of dollars, in upgrading their showrooms in the last 10 years, and they should be properly compensated for the loss in value. Flash showrooms are one thing, but they are of little value if you have nothing to put in them. One dealer on my patch, Rosewarne's in Kadina, inform me they've been Holden dealers since 1948. They are the longest-standing family owned and operated Holden dealership in Australia, spanning five generations. There is no special treatment for Rosewarne's, not even a gold watch—not much for loyalty.

There were 9,000 people employed by Holden throughout the network when they closed their manufacturing facilities. They committed at that time, just three years ago, to retaining 1,000 direct staff, plus 6,000 across the network. Things have changed, I grant you that. But they should be assisting their dealers to deal with that change—to deal with the redundancy payments that they will ultimately be facing. As recently as January, Holden were assuring their dealers that they were here for the long haul. Not only that; they were telling the public that they were here for the long haul and that they had a range of new and exciting vehicles to bring here that they would rebadge under the Holden name. All of that is not happening.

Other issues remain. General Motors want the dealerships to continue servicing their cars for the next 10 years, but they are playing hardball here as well. There is a dispute over warranty work. In the past, the company have come to the party because they have wanted these dealerships to keep selling Holden cars. But we know that they are likely to take a tougher line on those things now. There are other issues; they're actually saying to the dealerships, 'Maybe you won't get the service agreements for the long term'—certainly nothing for loyalty there.

General Motors-Holden have soaked up hundreds of millions of dollars in taxpayer funds over the years, through subsidies while they were manufacturing in Australia. The company has a market capitalisation of more than US$40 billion. This company is worth more than US$40 billion, and they are penny pinching on their exit from Australia. Maybe they will never return to the Australian market, but my experience tells me this: even when you plan not to come back, you should not slam the door on the way out. Treating dealerships in this way is simply not Australian. (Time expired)

Trent Zimmerman (North Sydney, Liberal Party) Share this | Link to this | Hansard source

Is the motion seconded?

A government member: I second the motion and I reserve my right to speak.

Patrick Gorman (Perth, Australian Labor Party) Share this | Link to this | Hansard source

I start by thanking the member for Grey for moving this motion, but I note that this is a motion that comes at the end of the very sad demise of Holden in Australia. Like millions of Australians, I learnt to drive in a Holden. My family weren't car-obsessed people, but the Commodore station wagon that I learnt to drive in, got my Ps in, did the job. I managed to scratch that car on a number of occasions, and I'll apologise once again to my mum and dad for the damage I did to the car while driving. But I did eventually learn those lessons, just as we in this place should learn the lesson from what has happened with Holden and what has happened with our manufacturing industry here in Australia, as we recover from the crisis we face currently.

As World War II escalated, Australia's supply chain came to a halt. Prime Minister Chifley knew that an Australian manufactured car was a necessity not just for economic recovery and sustainability but for our national confidence. Ben Chifley launched the production of the Australian made FX 48-215 in 1948. It didn't have quite the same branding genius as that behind 'JobKeeper' or 'HomeBuilder'! Nonetheless, it did the job. Holden Australia made 120,402 of these cars in just six years—a huge contribution to our postwar economic recovery and, equally, to our national manufacturing capability over the coming decades.

While we think of Holdens in more recent years as being manufactured in Victoria and South Australia, the truth is that for many decades these cars were assembled across Australia. Indeed, in 1926, the Holden assembly factory was opened in Mosman Park, in the then electorate of Fremantle. Much of the history of this Australian manufacturing site is captured by the Holden Retirees Club; I want to thank them for preserving this part of our national history. During World War II, its work was reallocated from building Australian cars to building planes and boats for the war effort; and, in its last three years of operation in the 1970s, it was awarded best of the Holden assembly plants anywhere in Australia. The Canberra Times reported the closure as 'no surprise'. However, it did say that it had come 'suddenly and at the worst possible time for Western Australia', which had the highest unemployment in the country then. The site shut in 1972 and is now the home of Iona primary school, in the electorate of Curtin.

This year, for the first time in decades, many members have not come to parliament in an Australian made car. In every year that John Howard was Prime Minister, he travelled in a Holden Commodore. It was Prime Minister John Howard who said, in 2006, when he launched the expanded Holden facility in Elizabeth:

… we shouldn't lose sight of how important it is for us to maintain a manufacturing capacity and the successive policies of my government have been dedicated to that end.

Prime Minister Howard continued:

… this is no more so of course than we find in the motor manufacturing industry.

Just seven years later, that lesson had been well and truly lost when, on 9 December 2013, Treasurer Joe Hockey dared Holden to leave Australia. Sadly, that has come true. After 160 years, a company that existed before Federation ended on this government's watch. As the member for Grey's motion notes, some 9,000 jobs were lost through dealerships, 800 more jobs were lost in the shutting of the Holden operation and 950 jobs were lost when the plant at Elizabeth did close in 2017.

Sadly, there are some similarities ideologically between the demise of Holden and the snapback approach that we see to child care this week, between ripping away support from our car industry then and ripping away JobKeeper from the childcare industry now: industries with skilled workers essential to our economy and long-term careers, and sectors that have flow-on benefits to our economy. It is unbelievable that we continue to make similar mistakes in different sectors and different industries time and time again. And then we had the Prime Minister yesterday say to his party room that he would 'have to go out of his comfort zone to support manufacturing'. I don't know what it is that is so uncomfortable about supporting Australian manufacturing that it would lead the Prime Minister of the day to say it is 'out of our comfort zone'. It says it all.

I'll finish by saying that, while the West Perth City Motors Holden site in my electorate no longer sells Holden vehicles, it is now home to Dismantle, a fabulous community social enterprise that helps young people fix bikes and continue their education.

Angie Bell (Moncrieff, Liberal National Party) Share this | Link to this | Hansard source

I rise to speak about the General Motors Holden decision to walk away from Australia and from Australians. I do, along with the member for Grey, acknowledge that business is business. However, it is a disappointing and an unexpected decision that has enormous ramifications for 200 dealers, potentially 9,000 employees and 1.6 million vehicle owners across Australia. It's not acceptable that this decision was made without government consultation when it affects so many jobs.

Holden has a special place in Australian history, with its own culture and its own loyal brand followers. Holden has a special place in my own heart. You see, my own family were closely linked to the Holden brand for three generations, since the beginning of its history. From the mid-forties, my grandfather Bill worked in the South Australian Woodville plant for 25 years on the line. My father, Roger, and many of his best mates also received their gold watches for 25 years of service at the Elizabeth plant. He worked first as a trimmer and later as a foreman. It was because he was an employee of Holden that he was able to access affordable South Australian trust housing for his family of six, from which we benefited greatly—including my two brothers, who also worked at GMH for a time.

Holden represented the opportunity for those who wanted to work, and it represented an iconic brand to millions of Australian households. In the seventies and eighties, you were either a Holden family or a Ford family. The day the factory closed in October 2017, plunging hundreds of workers into unemployment, was a very sad day for the people of my home town, and it saw the end of car manufacturing in this country. It was a disaster for the local economy and the end of an era for the workers of Elizabeth and their families.

Like 199 other dealerships across the country, von Bibra Motors in Southport have been severely impacted by this decision. Max Johnson, who's the general manager, said: 'It's bad when a franchise just pulls out from underneath you.' Five jobs were lost immediately and, over the long term, 20 jobs will be lost. My heart goes out to those families in my electorate who've been impacted by this decision, with no notice. At the peak of Holden Southport, von Bibra were selling 100 cars a month. Now, more than 30 per cent of their turnover has vanished. Von Bibra invested $3.5 million in November 2018 to renovate a new showroom for Holden, and they are now left with a shiny new showroom that houses second-hand vehicles. Wade von Bibra said: 'The decision to build was made based on the advice from Holden, who gave assurance for the long term, and it was very disappointing to be completely blindsided.' On behalf of Wade and the injustice to those who worked for the brand with loyalty and dedication for decades, I call on General Motors to ensure that their final act in Australia is to adequately compensate Holden dealers. Those around the country like Wade and those with single-brand franchises who have had to close their doors, who have invested significant capital in showroom facilities, service and repair equipment, stock and parts, need assistance for redundancy payments.

It's concerning that negotiations between dealers and the franchisor have been difficult, and I want to reiterate the government's expectation that they work to achieve a fair outcome for those caught out. It's time for GMH to do the right thing by these dealers who've carried their brand and to recognise that there are 1.6 million Holden automobiles currently on Australia's roads. Holden customers deserve to have confidence that there'll be ongoing support from General Motors and servicing and spare parts for their future. Wade von Bibra tells me that negotiations are back on the table for dealers, and I call on Holden to do the right thing by Australians.

The Morrison government has made regulatory reforms to automotive franchising arrangements to make the system fairer for consumers, dealers and manufacturers. The amendments to the Franchising Code of Conduct commenced on 1 June 2020, and the reforms are in three areas: end of term obligations, capital expenditure and dispute resolution. These reforms have been fast-tracked to respond to pressures such as COVID-19, declining car sales and the restructure of major brands. The government wants to help automotive franchises to continue operating and create jobs.

The Morrison government's Manufacturing Modernisation Fund is now supporting around 200 projects around Australia, worth about $215 million, including two businesses in Moncrieff. Patterson Glass in Nerang and Chemical House in Molendinar can now invest in new equipment and technologies to transform and upgrade their manufacturing operations.

As we face the coronavirus pandemic and look to come out the other side stronger, this investment in manufacturing is critical. I commend the Morrison government's determination to further strengthen Australian manufacturing, and the current pandemic gives us the opportunity as a nation to reassess and commit to the value of Australian-made goods.

Matt Keogh (Burt, Australian Labor Party, Shadow Minister for Defence Industry) Share this | Link to this | Hansard source

Local car dealers and their employees have borne the brunt of the General Motors decision to kill off the Holden brand in Australia. Many of these dealers are small businesses that had to invest significant capital in order to buy into the renowned and iconic Holden brand. These car dealers, of whom there are about 200 across the country, are typically required to purchase millions of dollars of vehicle inventory, special tools and equipment parts, not to mention the massive outlay to invest so as to spec showrooms in order to show off their vehicles. Usually, they've invested in long-term leases and are almost always required to maintain these to the car-brand specifications, which can change from year to year.

Our national franchising laws are currently incapable of securing any true justice for these Holden dealers, as they have been at the mercy of General Motors. Part of the work I did in the last parliament as a member of the Parliamentary Joint Committee on Corporations and Financial Services was to look at how the power imbalance between car manufacturers and dealers could be better balanced. The government must act on that committee's recommendations, though it's too late now for the Holden dealers.

When General Motors announced the end of Holden manufacturing in Australia, it gave assurances to Holden dealers and drivers. When General Motors announced that it was withdrawing from Australia, it gave dealers and drivers assurances again. The over 200 Holden dealers and 1.6 million Holden drivers were relying on the Holden brand and reputation, that they would continue to be looked after properly. It is now up to General Motors to ensure that its package to support dealers is appropriate. But we certainly haven't seen that from them yet. We must stand up for the Holden dealers, who have poured their hearts and souls into this iconic Australian brand, their businesses, employees and customers.

The Liberal government has been talking up manufacturing while presiding over its decline. After all, they are the ones that goaded Ford and Holden to leave our shores. While Australians want more domestic manufacturing and self-reliance, the Morrison government is found wanting. The genesis of Holden shutting up shop and now abandoning dealers and drivers was this Liberal government. The Prime Minister's told Australians that a Labor government would take away tradies' utes—but it turns out that it's the Morrison Liberal government that is presiding over this.

This year, though understandably, they stopped football too. Suddenly, the fate of meat pies and kangaroos seems threatened under this government. Car dealers across the nation deserve a better go under this government. Over 200 Holden dealers, employing over 9,000 people, deserve to be properly compensated by General Motors. The 1.6 million Holden drivers of Australia deserve certainty for the servicing and parts of their cars. The government must ensure that this actually happens. They started this and they are responsible for the consequences.

Tony Zappia (Makin, Australian Labor Party) Share this | Link to this | Hansard source

Can I endorse the comments of the previous speaker. This motion once again exposes the coalition government's foolishness in not backing Holden in 2013, causing its closure, a decision that was made by Holden's parent company, General Motors, after former Treasurer Joe Hockey insulted GM by first cutting $500 million from the automotive transformation fund, and then saying to Holden in this place, on 10 December 2013:

… if I was running a business and I was committed to that business in Australia, I would not be saying that I have not made any decision about Australia. Either you are here or you are not.

The next day, Holden announced it would close in 2017, and with it came the closure of Toyota, who had made it clear that, if Holden closed, Toyota would also close. Toyota knew that component manufacturers in Australia could not survive by supplying to one car maker alone. It was a decision that ended 100 years of car making in Australia and resulted in the loss of tens of thousands of jobs and apprenticeships, the loss of hundreds of thousands of dollars in research and development, the loss of billions of dollars to Australia's GDP every year, and, ultimately, the closure of hundreds of small and medium-sized businesses, including many of the Holden dealers that this motion refers to. It was inevitable that Holden dealerships would collapse once Holden cars were no longer made in Australia and the Holden badge had disappeared. Some Holden dealerships have already closed down, while others have taken on new brands in order to survive. I can understand exactly why they would have to do that. Whatever the case with respect to each of those dealerships, there have been job losses, and this is a continuation of the fallout from the closure of Holden here in Australia, as alluded to in the motion we are debating.

South Australia was particularly hard hit by the Holden closure. From the day the closure was announced, business confidence in South Australia collapsed and it has never fully recovered. Business confidence in South Australia has stagnated, all because of decisions made in this place by this coalition government that have taken away the confidence that there once was in South Australia because there was a strong manufacturing base, which was underpinned by Holden at Elizabeth. Holden was an iconic South Australian company. It was a symbol of strength, a symbol of pride and a symbol of confidence in South Australia. The Holden factory was a landmark building, at the gateway to the industrial north of Adelaide, once a bustling industrial precinct but now only a shadow of its former self, a precinct that had actually been established by a Liberal state premier, in Tom Playford.

In total, around 24,000 jobs were lost in South Australia when Holden closed, and the state's economy took an estimated $3.7 billion hit. That hit is still affecting communities out there today, because, while there was some effort to redeploy many of the people who lost their jobs, the reality is that many are still unemployed or underemployed. Yet, today, in response to the COVID-19 pandemic, the talk across Australia has once again come to how we can rebuild our manufacturing industries in this country. After having allowed them to wither, we have realised the significance and importance that they played in our national security and our national sovereignty. That is something I strongly support. I would like to see the rebuilding of manufacturing across Australia.

But this motion deals with the dealers. I, too, understand how the dealers have been hit particularly hard. I have also spoken to dealers in my region who, in order to survive, have had to either close down entirely or transition into other brands. They, too, had invested considerable dollars in their businesses and they, too, have been competing for years now against brands from all other countries. Their situation is a result of the consequences of this government's actions, because when the coalition government turned its back on Holden it turned its back on the Holden dealerships and their staff.

Trent Zimmerman (North Sydney, Liberal Party) Share this | Link to this | Hansard source

There being no further speakers, the debate is adjourned and the resumption of the debate will be made in order of the day for the next day of sitting.