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

At the request of Senators Carr, Muir, Xenophon, Madigan and Rice, I move:

That the following matter be referred to the Economics References Committee for inquiry and report by the first sitting day of November 2015:

The future of Australia’s automotive industry, with particular reference to:

(a) maintaining the capacity for Australia to engage in advanced manufacturing, by ensuring skills and industrial capabilities that have been sustained by the automotive industry are not lost;

(b) reducing Australia’s dependency on commodity exports by diversifying the country’s economic base, noting the importance of advanced manufacturing, including the automotive industry, in this diversification;

(c) the role of all sectors of the automotive industry, including, but not limited to, motor vehicle production, component making, after market manufacturing, engineering, servicing, retail motor trades, other forms of sales support, and the training of apprentices, in supporting an advanced broad based economy;

(d) the special difficulties faced by component makers in the transition to global supply chains and to other forms of manufacturing, especially as a result of the closure announcements made by the motor vehicle producers;

(e) new technologies influencing the automotive industry, both in Australia and internationally, especially new and developing forms of propulsion, such as hydrogen, electric engines and hybrid engines;

(f) new business models for the industry, including employee share models and attracting international venture capital and private investment;

(g) the possible effects of early closure of motor vehicle producers, including risks and consequences for the industry, skills, capabilities and the broader economy, including social consequences, and what policy actions could mitigate or exacerbate these risks and consequences;

(h) the need to synthesise and consolidate the findings, recommendations and knowledge of other reviews and inquiries pertinent to the automotive industry, in order to identify key policy inconsistencies, regulatory burdens and factors for growth and investment;

(i) the importance of long term, stable employment for workers in the automotive industry, and the need for greater access to transitional training and career opportunities; and

(j) any other related matters.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Stephen Parry (President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

The decisions to cease manufacturing in Australia by 2016 at Ford and by 2017 at Holden and Toyota were made entirely by the motor vehicle producers themselves. Both the Mitsubishi and the Ford decisions to close manufacturing operations in Australia were made under the previous Labor government. All three remaining producers have indicated that the level of government support was not the reason for their decision to cease manufacturing cars in Australia. The federal government has continuously worked with industry to make the transition for workers across the sector as pain-free as possible. The Productivity Commission estimates that the automotive industry received $30 billion in government support from 1997 to 2012. There were five million vehicles manufactured in Australia; that equates to over $5,000 per vehicle of government support during this period. Despite this substantial assistance, the industry has been unable to survive in a highly competitive global environment. Australia's manufacturing industry is moving towards new opportunities in new industries.

Question agreed to.