David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Industry, Innovation and Science, Senator Sinodinos. Can the minister explain what the Turnbull government is doing to support the transition of Australia's auto-manufacturing sector?

Arthur Sinodinos (NSW, Liberal Party, Minister for Industry, Innovation and Science) Share this | Link to this | Hansard source

Today is the beginning of National Manufacturing Week, so I am delighted to speak about the ongoing commitment of the Turnbull government to the automotive sector. Manufacturing in Australia is transforming, and its long-term health depends on developing new and innovative ways of moving into high-value, high-skilled advanced manufacturing. Yesterday I announced that the Turnbull government has committed an extra $100 million in new money to drive innovation in Australia's manufacturing sector to create jobs, grow businesses, improve productivity and be globally competitive. The fund includes $47.5 million for a new advanced manufacturing growth fund which will help industry adjust to the wind-down of car manufacturing. It will help businesses establish and expand high-value manufacturing in South Australia and Victoria.

We are investing in the automotive industry's future in this country while providing the diversification of businesses to drive high-value, innovative advanced manufacturing practices in this country. That is why this fund will also provide $20 million under the CRC projects initiative to support larger-scale advanced manufacturing research projects of up to $3 million in funding over three years. There will be $10 million to establish innovation labs—these would be in South Australia and Victoria—to provide test centre facilities and business capability development for the industry. Tariffs will be reduced—this is worth $13.5 million—on imported prototypes and components used by motor vehicle design and engineering services that operate in a global network. There will be $4 million for the ongoing work of our Advanced Manufacturing Growth Centre to support small-scale and pilot research projects assisting small firms and early-stage researchers to quickly move to large-scale research and commercialisation, and $5 million will be invested in student research at universities and technology institutions to continue the flow of highly trained engineers to the automotive design and engineering sector. (Time expired)

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

Senator Fawcett, a supplementary question.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Can the minister update the Senate on how the Advanced Manufacturing Fund is building on the government's strong commitment to the auto sector?

Arthur Sinodinos (NSW, Liberal Party, Minister for Industry, Innovation and Science) Share this | Link to this | Hansard source

The new $100 million Advanced Manufacturing Fund is just the latest in a series of funds and programs rolled out by this government to support the automotive sector. It expands on the $155 million growth fund to support employees, businesses and regions most affected by the closure of manufacturing in Australia.

The car companies will continue with an import sales model and with more focus on high-end research and design, the $29.5 million Geelong Region Innovation and Investment Fund and the $24.5 million Melbourne North Innovation and Investment Fund that support innovative job-creation projects that strengthen and diversify these regions, and the $473 million Entrepreneurs Program, which continues to provide tailored advice and support to businesses not only in this sector but across the country. The government also supports industry through the growth centres, the R&D tax incentive and other initiatives, and of course the Automotive Transformation Scheme will continue until 2020. (Time expired)

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

Senator Fawcett, a final supplementary question.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Could the minister outline how the Turnbull government is supporting advanced manufacturing across Australia?

Arthur Sinodinos (NSW, Liberal Party, Minister for Industry, Innovation and Science) Share this | Link to this | Hansard source

It is true to say that we are not just focused on South Australia and Victoria. We have other programs that look at advanced manufacturing across the country. Our $250 million Industry Growth Centres Initiative is building capability and stronger industry systems, helping Australia transition into smart, high-value and export focused industries. Important, in that regard, is the Advanced Manufacturing Growth Centre, which focuses on leading cultural change in advanced manufacturing. But all sectors—food and agri, oil, gas and energy, mining equipment, technology and services, medical technologies and pharmaceuticals—will rely on developments in advanced manufacturing for their own growth.

This is on top of the government's $195 billion investment in our nation's future defence and its commitment to harnessing innovation in the defence sector. The Centre for Defence Industry Capability, in my portfolio, has been funded to $230 million to 2025-26 as a demonstration of that commitment. (Time expired)