Government introduces Automotive Transformation Scheme
First steps taken in a new-look local industryThe Federal Government's plan to secure the future of the local car industry through its New Car Plan for a Greener Future has taken its first step. Senator Kim Carr, the Minister for Innovation, Industry, Science and Research, has introduced the Automotive Transformation Scheme (ATS) to the House of Representatives.
The new 3.4 billion ATS assistance program (more here) was one of the recommendations outlined in the review of the Australian automotive industry by former Victorian Premier Steve Bracks. In his review, Bracks effectively mapped out future Government policy for the automotive industry for the next 10 years -- and the ATS is an important component of that policy.
The new Bill is intended to replace the transitional Automotive Competitiveness and Investment Scheme (ACIS) that incorporated progressive reductions in import tariff to five per cent by 2010. Under the Howard government, ACIS was extended to 2015, but the Rudd government's acceptance of the recommendations in the Bracks review last year resulted in a new plan that would see ACIS replaced by the ATS from 2011. ACIS will officially expire effective from December 31, 2010.
According to a press release from Senator Carr's office, the new scheme will "Provide the automotive industry with ten years of policy certainty at a time when it is facing acute pressure both in Australia and internationally.
"The Transformation Scheme is better targeted, greener and will boost the development of new skills that will ensure the industry's future."
Along with the complementary ACIS Administration Amendment Bill, the new bill will implement the $3.4 billion ATS plan that sits at the centre of the Government's $6.2 billion New Car Plan for a Greener Future.
The Green Car Plan aims to help the local industry design and manufacture cleaner cars through the ATS program, along with a supply of funds during its lifetime that include the formation of a new Automotive Industry Innovation Council, helping the restructuring of the components sector and an expansion of the LPG vehicle scheme that ups payments to LPG purchasers.
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.
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