Green light for green Car Plan

The government's $6.2 billion New Car Plan for a Greener Future has been given the green light with the passing of critical legislation through Parliament on September 16.

Bill 2009, the $3.4 billion Automotive Transformation Scheme (ATS), is a co-investment scheme aimed at helping "ensure the economic sustainability of the Australian automotive industry by stimulating investment and innovation", says Innovation Minister Kim Carr (pictured).

"The 10-year ATS gives the automotive industry the policy certainty it needs to continue long-term strategic investment, in spite of the lingering effects of the global recession.

"The legislation reinforces very stringent accountability and transparency requirements, without jeopardising the competitive position of the 193 participants in the scheme."

Threats to the passing of the bill through the senate evaporated after the opposition abandoned its proposed amendment that would have required public disclosure of the amount of money going to local companies.

"The Government applauds the Opposition abandoning an amendment that had the potential to frighten off investment, kill innovation and destroy Australian jobs," Minister Carr said.

Assistance through the ATS will replace assistance currently provided by the Automotive Competitiveness and Investment Scheme (ACIS) from 1 January 2011. A transitionary bill, the ACIS Administration Amendment Bill 2009, has also been passed.

The passing of the bill has been applauded by the Federal Chamber of Automotive Industries (FCAI).

"The passage of this legislation is vital to the future of the Australian automotive industry," FCAI Chief Executive Andrew McKellar said.

"This legislation will underpin crucial innovation, investment and R&D decisions and support thousands of automotive jobs," he said.

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