Dana Wortley (SA, Australian Labor Party) Share this | Hansard source

As a senator from South Australia, a car manufacturing state, I welcome the opportunity to speak in this chamber on the car industry in Australia and on what this government is doing to assist in securing its future. Unlike those on the other side, we in the government do not adopt a wait-and-see approach. We do not deny the existence of a problem, like those in the Howard government did with the crucial issues of climate change and the water crisis. We do not sit on our hands and wait until the point of no return has passed.

Today the Prime Minister and the Minister for Innovation, Industry, Science and Research announced a $6.2 billion, 13-year plan to make the automotive industry more economically and environmentally sustainable by the year 2020. The New Car Plan for a Greener Future is in fact a new deal for Australian car makers and for Australian car buyers. As the minister told us today, the Green Car plan will boast an expanded $1.3 billion Green Car Innovation Fund, which will provide Australian car companies with the opportunity to receive government funding to design and sell environmentally-friendly cars. The plan reflects the government’s commitment and, in Minister Carr’s words, determination to create high-quality, high-skilled, high-wage jobs.

It reflects too our belief in innovation and our thirst to give Australians greener, safer, more affordable vehicle choices. This fund will see the Australian government match industry investment in green cars on a $1 for $3 basis over a 10-year period from 2009. This is decisive and strong action put in place with the aim of protecting the Australian economy during the global financial crisis. The 13-year New Car Plan for a Greener Future is about manufacturing competitive, low-emission, fuel-efficient vehicles in Australia.

This is a significant day for the car manufacturing industry in our nation. Over its life, this plan is expected to be the catalyst for $16 billion in investment in this industry. It will implement the recommendations of the Bracks review of the automotive industry, including an expanded Green Car Innovation Fund, a reworked automotive transformation scheme and moves to increase our industry’s competitiveness in a tough and tight global market. It is very welcome news, particularly for my home state of South Australia, which has a long and proud history of vehicle manufacturing that stretches back to 1897, when David Shearer revealed his steam-driven horseless carriage.

Having a healthy, prosperous, forward-thinking and outward-looking automotive industry is central to ensuring a healthy future for all Australian manufacturing. It is therefore an essential contributor to our nation’s wellbeing and wealth. That is because today’s vehicles utilise an ever-widening range of advanced technologies. We need to be able to manufacture a vast array of components to be able to build a car from scratch. Australia is one of only about 15 countries worldwide that is able to do just that. Indeed, manufacturing employs one million Australians. It is the backbone of communities and the life force of families.

At least 200,000 Australians are employed either directly or indirectly by the car industry. In uncertain global times we need to ensure that such a crucial industry can have certainty for the future. Automobile manufacturers in Australia have already had to contend with high petrol prices, changing consumer preferences and intense global competition as they try to sell their products. As Senator Cameron pointed out, let us also not forget the impact of the US and Thailand free trade agreements on the industry.

There is no doubt that the global financial crisis has placed unprecedented pressure on local automotive manufacturers, who have already been doing it tough. Australia needs to create an environment that will foster investment, encourage innovation, generate employment, reward research and development and, crucially, restore confidence for the years to come in the long term. For those reasons, the Rudd Labor government— (Time expired)