Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is also to the Minister for Innovation, Industry, Science and Research, Senator Carr. Can the minister inform the Senate what the government is doing in response to the announcement by Bridgestone Australia on Friday, 23 October 2009 that it would be closing the tyre manufacturing plant in northern Adelaide in 2010? What support will be provided to retrenched workers? What arrangements have been made with the government of South Australia and other stakeholders to ensure that support is coordinated effectively? What specific employment services will workers have access to, and what role will the government’s car plan play in helping them to adjust?

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

I thank Senator McEwen very much for that question. It is an important matter. The decision of Bridgestone Australia to close its tyre factory at Salisbury by next April is evidence of the pressures that are now bearing down on Australian industry. Those pressures have been intensified by the global recession, which is not yet over. This is not the time to relax our vigilance, and that is why the Commonwealth has acted swiftly, in partnership with the government of South Australia, to support the 600 workers employed at the Salisbury plant. We have established a Commonwealth-state task force to oversee the delivery of services to the affected workers. The task force has also involved senior company representatives and unions.

Bridgestone has said publicly that workers will receive their full entitlements. The Commonwealth will provide a $4.7 million package of measures to support job search and job training. We want to ensure that workers get back into the workforce as quickly as possible. All Bridgestone workers are eligible for intensive employment services under the government’s Automotive Industry Structural Adjustment Program, which is part of the New Car Plan for a Greener Future. AISAP offers workers who are made redundant from the automotive manufacturing company stream free assistance from a local Job Services Australia provider. Providers will help workers develop a tailored employment pathway plan and provide additional assistance to help them find new employment.

Workers will also be supported by a local employment coordinator for the Northern and Western Adelaide Priority Region, where the plant is located. Senator Arbib is responsible for that particular aspect of the program. We will be standing shoulder to shoulder with the 600 workers, and their families, who have been displaced by the decision of Bridgestone Australia. (Time expired)

Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

I thank Senator Carr for that answer. Mr President, I ask a supplementary question: would the minister to explain to the Senate what support retrenched Bridgestone workers will receive for retraining, given that that may be critical to their re-employment prospects? What assistance will they be eligible for through the Automotive Industry Structural Adjustment Program and other Commonwealth programs? What new qualifications will they be able to pursue and how will this improve their employability?

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

I thank the senator for her question. Retraining will play an important part in ensuring that retrenched Bridgestone workers find quality, sustainable new jobs. Funding to retrain workers will be made available through the Commonwealth’s Productivity Places Program, which is delivering 711,000 new training places over five years. This includes 10,000 structural adjustment places for retrenched workers. Workers will also get additional Employment Pathway Fund credit to help them with training as part of their AISAP entitlements. They will be able to gain a certificate III, certificate IV or diploma qualification, giving them the skills to win jobs in fields where employment is growing. The Commonwealth is exploring other training opportunities with the South Australian Department of Further Education, Employment, Science and Technology. I repeat: we will be standing shoulder to shoulder with these workers. (Time expired)

Anne McEwen (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister also advise the Senate what challenges Australian manufacturing companies, such as Bridgestone, face in the present environment? What are the specific challenges facing firms in automotive manufacturing? To what extent are recent trends in the manufacturing sector the result of long-term developments and to what extent are they a consequence of the global recession? What measures have the government taken to support our car and vehicle component makers and to drive the modernisation of Australian industry more generally?

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

The Bridgestone closure highlights the acute competitive pressures facing Australian manufacturing, and Australian automotive manufacturing in particular. Increasing competition from low-wage producers, the high rate of the Australian dollar, changing consumer preferences and, more recently, the worst global downturn in a lifetime have all had an impact. There are no simple answers to these challenges. That is why the Australian government is working on many fronts to secure high-wage, high-skilled jobs for the future—not least through the $6.2 billion A New Car Plan for a Greener Future. Powering Ideas, our new 10-year innovation agenda, is backed by an immediate injection of $3.1 billion in new funding over the next four years. We are giving Australian manufacturing the support it needs to retool— (Time expired)