Car industry delivers message to coalition

Australia's auto industry peak body has demanded the federal opposition not hamper the passage of industry minister Kim Carr's Automotive Transformation Scheme (ATS) bill.

The Federal Chamber of Automotive Industries (FCAI) describes the scheme as "a crucial element" in the government's New Car Plan for a Greener Future.

"Now is not the time for political opportunism," FCAI chief executive Andrew McKellar said in a statement. "Tens of thousands of automotive jobs, as well as vital investment decisions are dependent on the support of this crucial legislation."

"The legislation will provide the industry with the confidence to invest in new technologies and support the development of lower emission and greener vehicles in Australia," Mr McKellar said.

"Any delay will cause unnecessary uncertainty and concern," he said.

The ATS represents the first step in the federal government's $6.2 billion 'New Car Plan for a Greener Future'. With the existing Automotive Competitiveness and Investment Scheme (ACIS) set to expire at the end of 2010, the ATS will take its place and run from 2011 to 2020.

Federal minister for Innovation, Industry, Science and Research, Senator Kim Carr, introduced the $3.4 billion ATS bill to the House of Representatives as part of a suggested ten-year plan emerging from former Victorian premier Steve Bracks' review of the local auto industry.

The new scheme's advocates say it will give the automotive industry a decade's policy certainty during times of unprecedented volatility in the industry worldwide, helping players come up with cleaner, more competitive product.

The Bill overhauls guidelines set by the existing Automotive Competitiveness and Investment Scheme (ACIS), which has seen incremental drops in import tariffs aimed at a five per cent cap by 2010.

ATS revolves around phased-in cash grants, split 55/45 between auto makers and the component makers supplying them, with separate grants for plant and equipment and R&D. In return, participants will have to demonstrate tangible environmental improvements and a clear benefit in skills and development of their workforce.

A new Automotive Industry Innovation Council will oversee a restructure of the components sector and an expansion of the LPG vehicle scheme that boosts LPG purchase rebates.

A key point of the plan is the Government's determination to see Australia continue as one of a small number of countries around the world capable of designing, developing and building motor vehicles from scratch.

Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at www.carsales.mobi;