Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

I thank the senator for his question. There have been media reports that have appeared over the last two days suggesting that there may be further job cuts at Ford beyond those that were announced in August. Until the company is able to confirm or reject those reports, I do not believe it is helpful for me to speculate on the numbers of jobs to be lost. As of August this year, over 60,000 people were employed in the automotive sector, representing some six per cent of the manufacturing workforce. The industry is and will continue to be an important provider of high-skilled, high-wage jobs.

There is no escaping the fact, however, that car makers are under immense pressure globally and that the pressure is also being felt in Australia. The credit crisis, combined with the challenges facing the three American car makers, is making it hard for the local industry to have access to investment funds. That is why the measures announced on Sunday to increase liquidity and to stabilise the Australian financial system are so important. That is why the $10.4 billion economic security package announced today is also important. They will help restore the flow of credit to Australian businesses, including the car industry. Combined with the recent cuts in interest rates, they will help stimulate economic activity and reverse the decline in consumer confidence that has contributed to falling car sales.

The Australian industry may be going through some very difficult times but it is doing a damn sight better than its counterparts are in the United States and in many other countries. Australian vehicle sales declined by 3.1 per cent in September compared to a year earlier. That is much healthier than the results that we have seen in the United States, for instance, where the sales have fallen by 26.6 per cent compared to the same period. In Europe, car sales fell by 16.2 per cent to August compared to the same period a year earlier.

The government has consistently said that Australia is much better placed to ride out the global financial turmoil than just about any other advanced country. That is reflected in the relative strength of our car industry, which increased its exports by some 20 per cent to $5.6 billion last financial year. That does not mean that there will not be setbacks. It does not mean that the industry is not in urgent need of reform. The best thing that we can do about these challenging circumstances is to provide support to the Australian automotive industry and continue to provide a solid policy framework for the future. That is why the government commissioned the Bracks review into the automotive industry. It is essential that the sector continue to reinvent itself and become greener and more efficient globally in the way in which it is able to respond to these challenges. The government is responding to these reviews, which of course will provide a firm foundation for new technological development for the industry’s renewal and for its growth as a cornerstone of Australian industry and Australian society.