Carr responds to Holden production plan

Senator Kim Carr has commended Holden for the company's plan to reduce production to one shift. The Minister for Innovation, Industry, Science and Research issued a press release last week, accepting Holden's decision in "difficult circumstances".

In his release, the minister described Holden's revised production program (more here) as a "forward-looking, cooperative approach" for others to follow.

Senator Carr has discussed the matter with his colleague, Deputy Prime Minister Julia Gillard and the government will offer training under the 'Productivity Places Program' to workers whose pay has been reduced as a consequence of the decision.

Those workers will learn new skills and potentially benefit as other employment becomes available.

During a press conference subsequent to the Holden announcement last week, Senator Carr told media that the new production program was a "temporary measure" in the interim, anticipating the launch of the new small car that Holden will build at the Elizabeth factory.

"My expectation is that by 2010 you will actually see quite a significant rebound in the operations at the Elizabeth plant," he said.

Asked what was to stop Holden dropping the local-manufactured small car program on the basis that the car is produced currently in South Korea, Carr answered that there were material benefits for Holden in building the car locally, courtesy of the government's new car plan.

"The New Car Plan, which is what has made this company, or ensured this company's viability, set in train arrangements whereby companies had to co- invest," Carr stated.

"They won't get any support unless they invest. The whole principle of this plan is a mutual obligation one.  I'm very confident that the plan will proceed, but we're not risking any commonwealth money here because it actually requires the investment to be made first before we provide any assistance."

The locally-manufactured small car is due for release in 2010.