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

I move:

That the Senate take note of the answers given by the Minister for Immigration and Citizenship (Senator Evans) to questions without notice asked by Opposition senators today relating to funding to Toyota for the production of hybrid cars.

It is very hard to believe that the gentleman that gave the answers in relation to this matter was in fact the Acting Prime Minister of this country. The answers provided were an insult to the long-suffering Australian taxpayer and of course to this parliament. What they show is that Rudd Labor is in absolute and utter disarray, making policy on the run. When you do that, you make mistakes—and that has become very, very obvious. In fact, Australia has now become the object of international ridicule—throwing $35 million at one of the most profitable car companies in the world, if not the most profitable car company in the world. Toyota made billions of dollars of profit last year, and we are now led to believe it was enticed to come to Australia with a $35 million grant. In fact, Mr Watanabe of Toyota said, ‘It’s very nice to get the $35 million, but we still don’t know what we’re going to be doing with it.’ The very next day, Toyota issued its clarifying statement. But of course the fact that it did that would suggest that there was some contact between the Prime Minister or the government and Toyota to get that so-called clarifying statement.

When Senator Evans was asked about that very specifically during question time today he squibbed it, exactly like when he was specifically asked on what date the money was promised to Toyota—he squibbed it. This is from a government that said it would be open, it would be transparent and its policies would be evidence based. The only evidence we have is that the Labor Party is in disarray. The Prime Minister had problems in Japan and he had to go to Japan with some money as some sort of a peace offering to our major trading partner, Japan, which had been ignored for six months by this great expert on foreign affairs, one Mr Rudd.

We were told, for example, that the $35 million was coming out of the green car fund, which was budgeted for. Very interesting that—because on 13 May the budget came down and, on 13 May, the fund still had $500 million to start as of the year 2011. Yet, on 10 June, $35 million was allegedly advanced out of that fund to pay Toyota. We now know that Senator Carr claims that he has been in discussions with Toyota since December. If that is true—if that is to be believed—why wasn’t this $35 million talked about in the budget documentation? The fact that it was not clearly indicates that this was cobbled together as a matter of great urgency—to give the Prime Minister some sort of sensible photo opportunity.

But of course—as so often happens with the Prime Minister, be it on alcopops or whatever you like—it imploded on him because he is too clever by half. He thinks he can be smart. He has David Epstein, the man who used to run the National Media Liaison Service, called aNiMaLS, as his chief of staff, and the only business he knows is spin. What the Prime Minister and this Labor government need is substance. That is what has been sadly lacking in all of its decisions in recent times and what has been so clearly exposed in relation to this exercise on the Toyota $35 million fund.

What we have here is a decision that is clearly not transparent, clearly playing favourites. It is clearly spin over substance. What it shows is that this minister, Senator Carr, and the government are not in control of the portfolio—with no long-term vision. It is all about short-term, knee-jerk reactions, and it is about time Senator Carr came back to this country to explain exactly those things that Senator Evans was so incapable of explaining during question time today.

Kerry O'Brien (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

It is interesting, isn’t it—here we have a very important industry for this country, here we have an industry that is faced with the challenges of high fuel prices and a motoring public that is looking for significant alternatives so that when they expend their dollars on cars they have the best options, and what the opposition is effectively telling us today is that they do not care if Australian manufacturing is relevant for the future of motoring in this country. That is the import of this attack on providing funding for Toyota to manufacture a hybrid vehicle for the first time in Australia.

Over two years ago, I went to Toyota’s Canberra launch of the Aurion. The Aurion was the new six-cylinder vehicle with very high fuel efficiency that Toyota was producing—the same fuel efficiency as the Camry but with a six-cylinder motor. At that meeting I spoke to the head of Toyota in Australia. At the same time, they were promoting an imported hybrid vehicle—not just the Prius but the SUV version of their hybrid, which is a very expensive vehicle—and the conversation between the head of Toyota and me was about the potential for production of hybrids in Australia. I asked about the Camry and the Aurion and the possibility that in the future they would be made as hybrids in Australia. The answer was: ‘No, that’s not going to happen. We’re going to manufacture those vehicles in the future, we are certain, but in Thailand.’

That is what Australia was facing until this government approached Toyota and said: ‘What do we have to do? How can we use our green car fund to get you to change your mind and produce the hybrid in some form in Australia?’ And this government has done it; we now have a commitment from Toyota that they will assemble the hybrid in Australia for the first time. In Australia we have seen the manufacture of four-cylinder vehicles decline over time and more and more four-cylinder vehicles imported. We have seen diesel take an important role in the domestic vehicle fleet, and I think all of the diesel domestic vehicles are now imported. We were going to see, with the growth in hybrids, exactly the same thing happen. Of course, those opposite would have us ignore that possibility, allow the industry here to dwindle and allow the types of vehicles we have been producing for years, which it is being found are harder and harder to sell to the public, to be the basis for our whole industry.

This government has nothing to be ashamed of in enticing Toyota to commence the production of the hybrid vehicle in Australia, because once they are here there is a chance to build on it. But once Toyota, or indeed others, firmly lock in to production of hybrid or other fuel-efficient vehicles outside of this country it will be harder for that manufacture to occur in Australia. By making this decision, the government has done the right thing by Australia, the right thing by the motoring public, the right thing by the industries that service vehicle manufacturing in Australia and the manufacturing industry and the right thing by the 60,000 Australians who work in the industry. There is nothing to apologise about. Using $35 million from the half-billion-dollar green car fund to get this initiative ticking over is the best investment of that money at this time that is obviously available.

It will be great if that can be built on—if the government can now talk to General Motors and to Ford about versions of fuel-efficient vehicles that they can produce in Australia. Ford has been producing LPG factory fitted vehicles for some time, and clearly, on fuel prices at the moment, they are a very cost-efficient vehicle compared to those that use unleaded petrol. So that is another area in which there may be development. There may be developments in wholly electric vehicles; let’s wait and see. But unless there is a government that is prepared to use its initiative to back innovation in those areas and get the manufacturing done in Australia the only thing that we will be faced with is the demise of the industry in this country. Labor has nothing to apologise for. It is amazing that we are hearing these questions from the opposition at this time. It shows that they have very little vision for this country, and frankly it is a good thing that they are out of government. (Time expired)

Grant Chapman (SA, Liberal Party) Share this | Link to this | Hansard source

Like my colleague Senator Abetz, I take note of the answer given by Senator Evans, the Minister representing the Minister for Innovation, Industry, Science and Research, in relation to the government’s announcement of a $35 million photo opportunity—grant, should I say—to Toyota to build the hybrid Camry vehicle in Victoria.

We have just heard spin upon spin. Not only did we hear spin and no answers to questions during question time; we have now had that compounded by Senator O’Brien, who comes in here and makes up the story as he goes along. He is now suggesting that there were longstanding discussions between the government and Toyota on the production of this hybrid vehicle, when there is no evidence whatsoever to support that contention. If that were the case, why didn’t the government answer the question that was asked by my colleague Senator Bushby and reiterated by me in question time as to what date Toyota was advised of the $35 million grant? Because it was pulled out of the blue as a photo opportunity for the Prime Minister during his visit to Japan. Why couldn’t they answer what the $35 million would be used for? Because they do not know. It is quite clearly the case that there were no detailed discussions on this issue prior to the announcement.

We have heard nothing but spin. We have just heard it from Senator O’Brien. We heard it from Minister Evans in his answers during question time—spin and dissembling. Not only does he expect senators to swallow that but, more tragically, he expects the Australian public to swallow it. It is simply not good enough. Australian working families, which the Prime Minister promised to protect, are struggling under the pressure of increasing petrol prices, increasing interest rates, increasing grocery prices and, thanks to the most recent budget, increased taxes. What is the government’s response? To hand out $35 million of taxpayers’ hard-earned money for a project that was going to happen anyway and for technology that, by the time it is introduced, will be well behind the times. There is no better proof that this was nothing more than a $35 million photo opportunity for the Prime Minister when he was in Japan than the comments of the Toyota president himself when he said:

It was only recently that we heard about the amount so we are not sure how we would use it.

That was not all. Toyota confirmed it again the next day when its spokesman, Mike Breen, said:

It would have happened regardless and we wouldn’t bring it to market unless we’re going to make money.

In that context, Minister Evans’s response, the spin we have heard today, is absolutely offensive to Australian taxpayers. All of us know that this was nothing more than a stunt for the Prime Minister to try to appear to be doing something about petrol prices and to divert attention from that key issue in the Australia community. While the Toyota spokesmen, in every newspaper in the country, are confirming that this was nothing more than an overpriced photo stunt, Minister Evans comes to this place with the temerity to suggest otherwise.

We then have the issue of the actual vehicle and the actual technology. The fact is that the engine for this vehicle is entirely Japanese built. It will be simply shipped to Australia and dropped into an existing Camry body. So Toyota in Australia will not be producing a 21st-century vehicle. It will be a Fred Flintstone car, one without an engine, until its imported engine is dropped in. What is even worse is that it is replacing an engine currently made for the Camry in Australia. An engine that is made here, domestically, in Australia is going to be replaced by a fully imported engine. That would not be so bad if it were state-of-the-art technology, but Toyota has already announced that, in 2010, Japan, America and European countries will have access to second generation plug-in hybrids, which provide much improved performance. They have not only handed out $35 million for a project that was going ahead regardless but also handed out $35 million to ensure that Australia does not have access to the latest and most effective technology.

I am certainly not going to pat the minister or Senator Evans on the back for such a decision. It demonstrates the sheer hypocrisy of this government and its willingness to do anything to divert attention from its failure to deliver on its promises to the Australian community. That was highlighted still further by its failure to adhere even to its own statements and guidelines regarding the green car fund. (Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

How quickly this coalition opposition has moved to the point of being so inward looking—an opposition for the sake of opposition. This is a fantastic announcement by Toyota and one that actually came to the fore as a direct consequence of government intervention and government assistance. This is a serious coup for this country. We now have the future of the car industry completely secured in terms of Toyota. Constant work will be done in terms of the $500 million green car fund to work with other manufacturers to take us to the next level in this industry, being hybrid technology, and to reduce our emissions from vehicles across the board.

The vehicle industry is a great industry in this country. As the opposition have demonstrated today, instead of supporting this wonderful announcement by Toyota—they should be congratulating the government for its intervention—they have failed to acknowledge the real value of this industry, which gives 60,000 workers jobs. It not only does that but also provides a critical mass for research and development, the training of engineers, the training of tradespeople and flow-on effects such as high-tech plastics manufacturing. This only happens because we actually have a vehicle industry here. There are so many industries—whether it be glass manufacturing or tyre manufacturing—where we bring in skills to have the critical mass to provide state-of-the-art technology, which then flows through to the rest of the economy. A lot of the industries that hang off the vehicle industry in this country then provide a critical mass for other technologies, which benefits other industries. If we lose the vehicle industry in this country—and the opposition seem to take the view that we should sit on our hands doing nothing—it will not only affect the 60,000 whose employment is a direct result of the vehicle industry but also have the massive flow-on effect of reducing the skills and technologies available for other industries.

It is crucially important for this country to maintain a high-tech vehicle industry. We are going through a stage where, due to climate change, the shortage of oil and the cost of petrol, we are moving to cleaner, greener and more efficient technologies. It is absolutely essential for this country to be at the leading edge of that. It is amazing that the opposition seems to criticise this decision. This is a decision by Toyota in conjunction with this government—this proactive government—that should be applauded by those opposite. As someone who has had a long association with the Victorian car industry, I am just amazed at the cavalier attitude of the opposition in stooping to talk down this industry—to say that we should not be intervening—when they clearly have no understanding of the importance of this industry to us.

What does the opposition see as so wrong with an announcement that will produce 10,000 hybrid Camrys a year from 2010? What is wrong with that? Why aren’t they applauding that decision? It is a fantastic decision. It is a significant coup for Australia, and I am delighted that Toyota has decided to invest in the Australian car industry and build the hybrid car here. I am delighted with that aspect. It is not just doing so because of the $35 million from the Australian government; it is a commitment to this industry and recognition that we have the skills base and the innovation base to build those cars here. It is a great endorsement of that industry and it creates a massive investment from Toyota itself. This does not just go to $35 million; Toyota itself will be investing many times that amount in getting the plant ready.

It is a capital grant—it is $35 million—but let us put it into context: it is about a third of the amount that the coalition spent on advertising the Work Choices legislation. But this strategic amount of money has got us the development and the innovation that will come to Australia through Toyota to build this plant here. It is an absolutely amazing result for this government and it is one that should be applauded. It is being applauded by industry. (Time expired)

Mitch Fifield (Victoria, Liberal Party) Share this | Link to this | Hansard source

I also rise to take note of Senator Evans’s answers on Toyota and the Australian automotive industry. This side of the chamber and, I think, media commentators have increasingly noted during the last six months that this government pursues spin over substance. We have had the glossy brochure to mark the first hundred days of this government. We have had the 2020 Summit. We have had the Petrol Commissioner. We have had Fuelwatch. We have had the Asia-Pacific EU announcement. We have had the non-proliferation announcement and the revival of the Canberra commission.

These announcements were just window-dressing. They might have been empty announcements that were ill-conceived and usually did more harm than good, but at least they were not at any great cost to the taxpayer.  But the announcement of a $35 million grant to Toyota to build a hybrid car is different. It does not deliver a benefit that would not have been delivered otherwise and it costs $70 million. I am annoyed about this, not just as a taxpayer to the Commonwealth but also as a Victorian taxpayer—$35 million from the Commonwealth and $35 million from the state government. The first outrage is that this was going to happen anyway but we are paying $70 million for the privilege.

When the grant was announced, the President of Toyota, Mr Watanabe—this has been mentioned many times today, but it bears repeating—said:

It was only recently that we heard about the amount, so we are not sure how we will use it.

They are not our words; they are the words of Toyota. The next day, Toyota spokesman Mike Breen said:

It would have happened regardless and we wouldn’t bring it to market unless we were going to make money.

That Toyota spokesman said that ‘it would have happened regardless’. Later that same day Toyota issued a statement saying that government support was ‘a critical factor’. I wonder what happened between Mr Breen’s comments to the press and the clarifying statement. It is echoes of ‘Iguanagate’: something is said publicly that a government does not agree with, a phone call is placed and there is a retraction of sorts. This sounds very similar to what happened in New South Wales; it is very similar indeed. This was a photo opportunity, pure and simple.

There was not even enough time before issuing the media advisory and making the announcement itself for this announcement to go to cabinet. In fact, so rushed was the announcement that the Prime Minister did not even have time to learn how to pronounce the word ‘Camry’. On radio interview after radio interview, he kept referring to a ‘Cam-rye’—and I do not know what a ‘Cam-rye’ is. That is how rushed it was. The Prime Minister did not even have the time to work out how to pronounce the name of the car that the Commonwealth was putting $35 million towards. In the budget handed down just four weeks ago, we were told that the $500 million green car fund would not start until 2011. Guess what? The PM thought: ‘It’s Tuesday. I’m in Japan. I need an announcement.’ So we get this $35 million announcement—a photo opportunity, pure and simple.

The government used to take quite a different approach to supporting the Australian car industry. Some may say that that different approach amounts to hypocrisy. Mr Deputy President, you might recall that the previous government put $20 million towards the Ford Focus project. When the current government was looking for savings for the budget and its razor gang had been established, guess what the government did—it sought to terminate that grant to Ford Australia. So serious was the government about doing that that it commissioned advice from the Australian Government Solicitor. I have a copy of it here. It is headed ‘Termination options: Commonwealth grant with Ford’. The response from the AGS to the commissioning person states:

You have requested our advice as to what the Commonwealth’s options are for terminating its existing grant deed with the Ford Motor Company of Australia. You have also sought further advice on what action Ford may itself take if the Commonwealth chooses to terminate the deed.

The advice also states:

You are advised that, with the recent change of government, a review is now being undertaken as to the government’s desire and obligation to pay to Ford the remaining $20 million in grant funding.

The conclusion of that advice is:

... in a practical sense, whilst the Commonwealth may be able to take action to terminate the deed for convenience thereby avoiding any ongoing obligation ... it could nevertheless become liable to Ford to pay compensation up to an amount which is equivalent to the remaining amount of actual grant funding.

In other words, the only reason the government did not go through with that is that the AGS advice said that it would have to pay the money if it went to court anyway. This is hypocrisy, pure and simple— (Time expired)

Question agreed to.