Mary Fisher (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Innovation, Industry, Science and Research, Senator Carr. Since the escalation of the global financial crisis on 15 September with the collapse of Lehman Brothers, has the minister spoken personally to the US heads of Ford and General Motors about the capacity and willingness of those companies to invest in Australia’s car industry on a three-to-one basis?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Thank you.

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Those on my left, the question was asked by Senator Fisher. It is not up to you to answer it. Senator Carr, you have the call.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

What I understood the question to go to is whether I personally have spoken to the heads of General Motors and Ford since Lehman Brothers. I spoke to the heads of Ford and General Motors in June. I have had direct conversations with both of those gentlemen and with their executive teams about their future investment plans for Australia and their commitment to ensure that we are able to develop new investment opportunities and new job opportunities in this country. For the first time ever, we have received from each of the corporations that you have mentioned detailed proposals about their investment plans. Those plans have subsequently been confirmed by the corporate leaderships of those companies since 15 September.

The government is very much aware of the challenges facing the industry and, despite the difficult times the automotive industry is having here and overseas, the government believes that the industry has a strong future. We are highly conscious of the need to ensure that the industry reinvents itself and that the Australian automotive industry is able to prepare for a low-carbon future. The government’s New Car Plan for a Greener Future will help ensure that the Australian automotive manufacturing industry continues to contribute to Australia’s prosperity, not only in terms of providing high-skilled, high-wage, quality jobs but also as our largest manufacturing export earner. That is exactly what the car industry has said repeatedly in their public statements and what has been indicated by the leaderships of the companies that you have mentioned.

The automotive sector is strategically significant to this country in terms of manufacturing and, particularly, employment, employing the better part of 65,000 people directly and some 200,000 people indirectly. Last year, the Australian automotive industry produced some 335,000 cars, worth $7.7 billion. It exported $5.6 billion worth of those vehicles in terms of components and made-up vehicles, which placed it amongst Australia’s top 10 export earners. What the corporate leaders internationally are saying to the government is that they expect that to continue, that they have confidence as a result of the New Car Plan for a Greener Future and that they will join the government in these new co-investment arrangements, which are predicated on principles of mutual obligation and ensure that we are able to strengthen the industry in these particularly difficult times. Rather than talking the industry down and acting in the irresponsible, cavalier way in which Senator Abetz has been, I trust the good senator will appreciate the need to understand the significance of this industry to Australian society and to the Australian economy.

Mary Fisher (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that the minister has indicated there have been discussions with Ford and General Motors since 15 September, what guarantees has the minister obtained from the US heads of General Motors and Ford about the new investment of those companies in Australia’s car manufacturing industry?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

I have been very frank with the chamber and with the Australian people about the difficulties facing this industry. I am confident about the commitments that have been made by those companies in terms of their direct communications with the Australian government. I said I have not personally spoken to Mr Wagner since 15 September.

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

Here we go!

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Senator Abetz, if you actually cared to listen, you might learn. What I have indicated—

John Hogg (President) Share this | Link to this | Hansard source

Senator Carr, address your comments to the chair, not across the chamber.

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

What I have indicated is that the company leaderships have responded to the government—in writing—about confirming their commitments to the future of investment in the Australian automotive industry. The whole program that we have announced is predicated on the assumption of co-investment. (Time expired)