Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. Did the Minister for Finance and the Minister for Industry exchange letters quantifying the net budget impact of the government's reversal of its position on the Automotive Transformation Scheme?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

No, we did not exchange letters. The Minister for Industry and I wrote a letter to the Prime Minister proposing a particular course of action. Essentially, that course of action went like this: the legislation in relation to the Automotive Transformation Scheme is stuck in the Senate and has no prospect of getting through the Senate. But because of decisions taken independently by car manufacturers like Holden, Toyota and Ford to cease operations in Australia and given the declining production volumes, most of the savings will be realised without legislation. As such, we made a decision and made a recommendation to the Prime Minister not to press ahead with the legislation, and the Prime Minister agreed with our recommendation.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is the net budget impact of the government's reversal of its position on the Automotive Transformation Scheme $105 million?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The ultimate net budget impact will depend on what the production volumes will be. Obviously, we worked on the basis of projected estimates in terms of what production volumes are likely to be. The numbers of this equation are that the total potential saving was about $900 million and, as a result of an estimates variation, it is expected that about $795 million of that $900 million will be achieved as a result of decisions taken by car manufacturers independently of the government, and as a result of the declining production volumes. Those are the numbers.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I refer to the front page of Adelaide's The Advertiser last week that announced: '$900 million tune-up for South Australia'. In light of the minister's indication to the Senate today, for which I thank him, that the budget impact via estimates variation is $105 million, can he please explain why the government has misled South Australians about its commitments to the auto industry under the ATS?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

It is beyond my capacity to explain front pages of newspapers, or headlines. At times I wish I could explain where certain headlines come from, but I have to say that so far I have failed in that endeavour. All I can do is refer Senator Wong to the media release put out by the Minister for Industry when announcing additional support by the government for the car industry in South Australia. In that statement it was very clear that, as a result of the decisions made independently by car manufacturers like Holden, Toyota and Ford that the government expected to realise most of the savings without legislation. Minister Macfarlane has been entirely transparent. You have asked me questions about the specific numbers and, in an effort to be as helpful and transparent as possible, I have been entirely transparent with you as well.