Nick Xenophon (SA, Independent) Share this | Hansard source

In my support of the Automotive Transformation Scheme Bill 2009, I would like to speak about, firstly, the importance of the automotive industry in South Australia, and I would like to comment on Senator Abetz’s foreshadowed amendments and of course the matters raised by Senator Milne and the amendment she has moved.

The automotive industry is not only vital to the national economy but also central to the economy of my home state of South Australia. Adelaide is among the top 20 cities worldwide for competitiveness in automotive manufacturing. In 2008, South Australia produced 34.7 per cent of total cars produced in Australia—this represents over 270 motor vehicle and component manufacturers. South Australia is the home of General Motors Holden, one of the major car manufacturing operations in the nation. Importantly, the presence of Holden has built up a cluster of component manufacturers and suppliers all dependent on Holden for their viability and survival. It is interesting to note that the closing of Mitsubishi, although it was a blow to the industry, was by no means a body blow. The component manufacturers have been able to adjust to the shock of Mitsubishi closing, and General Motors Holden has taken up the slack.

In the year to April 2009, the state earned $1.4 billion through road vehicle parts and accessories exports, which is approximately 13 per cent of South Australia’s total goods exports. Servicing these very good results were around 40 component manufacturers, 55 equipment and service providers, six special body manufacturers and 20 aftermarket manufacturers. Making this possible were the approximately 9,300 South Australians that were employed in this sector in the year to May 2009. So, clearly, the automotive sector is vital to my state. But I think that the matters raised by Senator Milne are absolutely legitimate. We as taxpayers do need to ensure we get value for money, in terms of how the money is spent, to ensure that we can protect jobs in a long-term, meaningful way.

On 23 December last year I put out a media release commenting on a deal done with the state government and announced by the state government, which involved $150 million of federal money for a new small car to be produced by General Motors. I welcomed that; I made that absolutely clear. But I raised the issue: why isn’t General Motors in South Australia having access to the technology for the Volt electric car that General Motors in the United States was producing. Why are we getting—