John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

My question is to be Minister for Innovation, Industry, Science and Research, Senator Carr. Can the minister explain why Blade Electric Vehicles, Victoria, Australia's only licensed all-electric vehicle manufacturer, was blocked from participation in the 2011 Melbourne International Motor Show by the controlling parties until media pressure gained it entry for the last two days and why it has been denied a supply of any locally made car bodies from GMH, which has benefited by over $140 million from the government's green car fund?

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

I thank Senator Madigan for his question and for his interest in manufact­uring, particularly automotive manufactur­ing, which I think he appreciates is an interest that I share. I am familiar with Blade Electric Vehicles, and I have had the oppor­tunity to visit the plant and to drive a vehicle. I am advised, however, Senator Madigan, that the Australian International Motor Show which was held in Melbourne was jointly organised by the Federal Chamber of Automotive Industries and the Victorian Automobile Chamber of Commerce.

The government does not provide any financial support for the motor shows and has no part in the organisation of those shows. I understand that the government did, however, provide support to Blade Electric Vehicles in August 2008. Blade was in fact awarded $120,000 in funding in that year to develop its battery management system, BMS, and its conversion technology facilita­ting full electric vehicle retrofit applications for the smaller car sector. The project was in fact successfully concluded in 2010. I believe that the company is a good company and it is undertaking innovative products. The question of its relationship with General Motors is, however, a commercial one. The sourcing of the bodies that it is using is based on its commercial arrangements with resp­ective companies. So it is not a question that the government has sought to intervene in regarding those commercial arrangements between General Motors and Blade.

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary quest­ion. Can the minister explain why a competi­tor to Blade, a company named Better Place, has benefited—through an associated comp­any, EV Engineering—from $3½ million in government support through the green car fund and has recently commenced receiving car bodies from GMH?

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

The arrangement that was entered into in regard to Better Place was actually a consortium of companies. It was not just Better Place. The consortium comprised automotive component suppliers Air Inter­national, Bosch, Continental and Futuris, and, in fact, electric vehicle infrastructure and services provider Better Place. It was a proof-of-concept project which will demon­strate the technical viability and market appeal of a large, rear-wheel-drive electric vehicle based on Holden's Commodore. Again, the relationship is strictly a commer­cial relationship between the consortium and General Motors. Of course, it is not the only arrangement we have entered into in support of electric vehicles. We have also provided support to a range of vehicle projects inclu­ding the Nissan Leaf and battery technolo­gies through the Nexteer, which is a project which involves some 250 new jobs being created. (Time expired)

John Madigan (Victoria, Democratic Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. In light of the government's comm­itment to the supposed level playing field, can the minister assure the public that taxpayers' dollars are not being used to create a monopoly for a predominantly foreign owned company at the expense of a fully accredited Australian owned company, Blade Electric?

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

The government has no interest in creating a monopoly. In regard to the auto­motive industry, our approach is to ensure that we actually take a technologically neu­tral stance in regard to the promotion of any particular automotive technologies. What we have sought to do is to ensure diversity and that we are able to ensure that the manufact­uring componentry is able to be produced so that a range of options can be pursued. The process by which we have done that is through co-investment, whereby individual companies are required to actually invest their own money in partnership with govern­ment so as to ensure that they have the necessary skin in the game. No approach has ever been taken on the basis of developing a monopoly for any technology or to particu­larly take any favoured view towards any one company within the automotive industry. So, Senator, our approach is to ensure that we remain one of the— (Time expired)

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

Mr President, I am sure you would be pleased to know that I am asking that further questions be placed on the Notice Paper.