Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Xenophon for that question. He quite right: this government does want to create an environment where all businesses, small and large, can prosper. We are doing that by implementing the strong agenda for a stronger, more prosperous economy that we took to the last election. Of course, the budget that was delivered by Joe Hockey on Tuesday night is an important next step as we implement that agenda.

In relation to subsidies for the car industry, what we have done in this budget is to face the facts, and the facts are that Holden and Toyota have followed others previously in saying that they will no longer manufacture cars in Australia. As such, it is entirely appropriate that from 1 January 2018 onwards we will not continue to provide for subsidies towards manufacturers, given that at that point in time they will no longer be in Australia manufacturing cars.

Having said all that, we are very conscious of the fact that there is the need for an appropriate transition through the period between now and when Holden and Toyota stop manufacturing in Australia. The Abbott government is working very closely with relevant state governments and with Holden and Toyota to work through that transition. Indeed, we have made funding available to facilitate that transition. And we expect that Holden and Toyota also will provide appropriate support to their employees to assist them and their families through the transition of what has been caused by the decisions they have announced.