Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister Assisting for Industry and Innovation, Senator Lundy. In light of the recent reductions in the Ford workforce, can the minister outline what the government is doing to ensure the auto industry remains a vital part of the Australian economy?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

The government appreciates that the past few weeks have been very tough for Ford workers and their families. The auto industry has been under economic pressure caused by a high Australian dollar and increased competition from overseas. Labor understands that a modern economy needs a strong and viable manufacturing sector. The automotive industry is an integral part of this, and that is why the Gillard government is providing no less than $5.4 billion to the auto sector under our new car plan.

There are 46,000 workers directly employed in the automotive sector, which supports another 200,000 jobs. It trains the engineers, pays for the machinery and drives the breakthrough innovations we need to help all manufacturing industries compete. So, rather than throwing up our hands and saying that these challenges are all too hard, we are committed to acting. We are working with the industry to respond to the current pressures to help the industry restructure and be sustainable in the future.

The government is creating an environment that supports job creation. It is what Labor has done since coming to office. It is what we have always done when faced with challenges. We did it in the global financial crisis and we are doing it now. A strong economy is good for all Australian workers. A successful auto industry creates skilled jobs, drives high-level research and supports innovation across manufacturing. It is only Labor that is committed to a sustainable future for the automotive sector and only Labor that is providing the certainty that it needs for the future.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. What is the government doing to assist those loyal, efficient, hardworking workers so tragically affected by the unfortunate announcements last week at the Ford Motor Company?

Opposition Senators:

Opposition senators interjecting—

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

The opposition does not like hearing about the good work that the Labor government is doing. I would like to add to that. In July Ford announced it would be reducing its workforce at the Broadmeadows and Geelong plants, citing the need to restructure its production in response to changing consumer preferences for larger cars towards more fuel-efficient vehicles. The federal government has a range of measures available to assist workers, including intensive employment support under the Automotive Industry Structural Adjustment Program. Ford says that the changes to production will help achieve a sustainable operation and ensure employment levels are in line with the demand for Ford products. This does not impact on the design and production of the new models of the Ford Territory and Falcon for 2014, and the government's co-investment through the new car plan will help realise those plans of Ford.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister identify any further threats to one of Australia's most vital industries—the automotive industry?

Kate Lundy (ACT, Australian Labor Party, Minister Assisting for Industry and Innovation) Share this | Link to this | Hansard source

Labor is supporting the industry. It is an easy and clear choice for us. By contrast, it is those opposite who will abandon the sector. They do not support the recent co-investment in Holden and Ford. They will rip away the $1.5 billion in support, presumably to fill their $70-plus billion budget black hole. Under the Liberals all support for the automotive industry will cease in 2015. Because of their relentless negativity, 250,000 jobs are under threat. They are saying no to the $4.1 billion investment in capital and in innovation. They are saying no to the $32.2 billion in domestic production to 2015. This is not only irresponsible; it is deliberate neglect and disregard. It is Labor that supports these workers and these jobs. It is the opposition who continue to walk away and abandon them.