Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to Senator Evans, the Minister representing the Minister for Innovation, Industry, Science and Research. Can the minister confirm that the engine for the hybrid Toyota Camry to be built in Australia will be fully imported from Japan?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank the senator for his question. As the senator would know, the government made a very important announcement about innovation and the attempt to modernise our economy and lift our productivity capacity. The future of the Australian automotive industry lies in its ability to innovate, to meet changing consumer preferences and to respond to the challenge of climate change. The Green Car Innovation Fund which we have announced aims to support strategic investments that introduce and adapt new technology to reduce carbon emissions and improve fuel efficiency in the automotive industry. That support from the government was a critical factor in Toyota Australia’s decision to build and produce a hybrid Camry locally in Australia. That is the government’s understanding and it is Toyota’s understanding.

We want to be clear about what industry programs seek to achieve, and we must ensure these programs are effective. The Productivity Commission’s report will be a valuable input to the Bracks review and the government’s response to it. The commission is a first-class body; it has produced more than 100 publications in the last three years, but I do not expect to agree with all of the views and all of the publications. The government will look closely at the evidence and the views before us. The hybrid Camry, though, will be the first green vehicle of its kind commercially made in Australia. It will produce lower emissions than any other Australian made model and it will lead the way for cleaner, greener Australian produced vehicles.

Toyota’s announcement is a coup for the Australian automotive industry and one which stands the industry in a better stead for a competitive and sustainable future. I hope that the opposition supports this important development.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. This is all very interesting but we have read it all in the papers. The question was very simple: is the engine imported from Japan? It had nothing to do with what Senator Evans is talking about. On the grounds of relevance, Mr President, could I ask you to indicate to the minister that we want the question answered, not a general ramble about government policy that we have seen in the papers over the last week.

Alan Ferguson (President) Share this | Link to this | Hansard source

Senator Evans, I remind you of the question.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I was trying to explain to the Senate what an important decision this was, and I was hoping that the opposition was going to support this important development for the Australian car industry. This contribution of $35 million for the hybrid Camrys will be part of a package that will be negotiated with Toyota and that will support their decision. They have made it very clear that this has been helpful in them coming to their decision about where to invest. As a condition of the capital, the Commonwealth will require the $35 million to be invested in research and development and retooling the plant and equipment to produce the hybrid

The government will work with Toyota on a contract that builds in R&D and innovation milestones. The contractual arrangements are yet to be entered into, but Toyota welcomed the government’s decision. We think it is a very important step in providing more fuel efficient cars. I do not know whether the interjection reflects the fact that the opposition have a policy decision today to oppose the decision. Like all of their policies at the moment, I am never quite sure what they are in favour of or what they are against, and we never seem to find out until the vote. I notice from Mr Nelson’s comments this morning, some of the things he opposed in the budget seem to have dropped off the list. But this is a very important development.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I raise a point of order. It is of no relevance what other people might be saying. There was a question we wanted some information about and that was whether this engine is imported. The minister has not even tried to answer that. If question time is just going to be a ramble that ignores the questions the opposition are legitimately asking, we may as well give question time away. We are here to get information.

Alan Ferguson (President) Share this | Link to this | Hansard source

You are starting to debate the question. Senator Macdonald, I am conscious of answers that have been given over a long period of time by ministers. However, Senator Evans, I would suggest that referring to what Mr Nelson said about other issues is not relevant to the question, so I would remind you of the question.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Thank you, Mr President. I am surprised you rule Senator Nelson’s comments not relevant, but I guess you share the view of the majority of the Australian Senate.

Alan Ferguson (President) Share this | Link to this | Hansard source

It is not relevant to the question, Senator Evans.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

This is an important announcement. This is an important commitment by the Australian government to the development of a hybrid vehicle. The negotiations between the government and Toyota will ensure this development money is well used and that we develop an alternative car capacity in this country that benefits consumers with lower fuel costs and benefits the economy as a part of our attack on the high level of carbon emissions.

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I assume that the answer to my question is, in fact, yes. I ask a supplementary question of the minister: how does fully importing an engine made in Japan help Australian innovation and what guarantees has the government sought from Toyota, in particular that it will not reduce production of its all Australian made four-cylinder Camry engine, which uses the company’s latest improved fuel economy and lower emissions technology in favour of the fully imported Japanese hybrid engine?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

As I indicated to the Senator, the $35 million is a capital grant. Toyota and the Australian government will develop an appropriate contract with milestones for payments. As a condition of the capital grant, the Commonwealth will require the $35 million to be invested in research and development, retooling the plant and equipment to produce the hybrid. Quite frankly, this means that this investment will occur in Australia, not in Thailand. I would have thought that the opposition would have welcomed this commitment by Toyota to support the ongoing development of Australian car manufacturing. This government will work with Toyota on a contract that builds in R&D and innovation milestones and helps ensure the development of the hybrid vehicle in Australia.