Senate calls for auto taskforce

A Senate inquiry has again thrown the spotlight on the Federal Government’s attitude toward the Australian automotive industry, calling for the establishment of a taskforce to develop policy settings for the radically different landscape after 2017 when Ford, Holden and Toyota have all ended local production.

The recommendation, contained in the final report of the Senate Economics References Committee Inquiry into the future of Australia’s automotive industry, was handed down in Canberra this afternoon.

It comes just days after motoring.com.au revealed a Belgian auto supplier was interested in acquiring Holden’s Elizabeth assembly plant and continuing to build the current Commodore beyond 2017, and also reported on RED Automotive Technologies, a South Australian firm that wants to develop an electric SUV.

motoring.com.au has also been reporting since last June on a third post-2017 potential start-up, Ethan Automotive.

The final committee report follows up on an interim report tabled in August that called on the federal government to maintain the Automotive Transformation Scheme support scheme until 2021, but be redefined to allow funding to a broader range to potential recipients.

The current federal government policy is that the ATS will finish up early in 2017 after the departure of Australia’s three current local car manufacturers Ford, Holden and Toyota. Sticking by that would allow the government to bank nearly $800 million allocated to the ATS out to 2021.

The deposing of Tony Abbot by ‘innovation’ Prime Minister Malcolm Turnbull means that policy might change. Recently appointed Industry Minister Christopher Pyne is due to unveil a new innovations policy this month.

The fundamental point the committee made was that with the withdrawal of the ‘big three’ the definition of what comprises the Australian automotive industry should be widened.

“Government must recognise that the automotive industry will endure,” the report stated.

“Given this recognition, the committee recommends that the government devote the necessary resources across a range of government departments to ensure the process of transformation continues.

“This includes a redefinition of the automotive industry to recognise and support the role of all sectors, including, but not limited to, motor vehicle production, component making, aftermarket manufacturing, engineering and design, servicing and smash repairs, retail motor trades, sales support and training,” it said.

The report said an Automotive Industry Taskforce should comprise industry, union and government representatives and its job would be to facilitate a collaborative and coordinated approach to developing and implementing a national automotive policy framework which would encompass all sectors of the industry.

The report noted there were both challenges and opportunities presented for the industry by new issues and technologies such as alternative fuels, electrification, light-weighting, gaseous fuels and fuel cell technologies, car sharing, telematics and autonomous vehicles.
“The downstream automotive sectors face challenges arising from changing business models, technological developments and the need to attract and retain skilled workers,” the final report stated.

“Automotive manufacturing needs assistance to retain as much activity in Australia as possible, and there are opportunities to expand automotive manufacturing in other areas, such as the automotive aftermarket and the truck industries, if the policy settings are conducive.

“In addition, the motorsport and motoring enthusiast sectors are significant contributors to the automotive industry and should be encouraged to expand their activities.”

Other notable recommendations include:

>> The development of comprehensive and coordinated strategy to “avoid a social and economic catastrophe” in areas affected by closure of vehicle manufacturing, especially in Victoria and South Australia
>> the continuation of current restrictions and requirements on the parallel importation of both new and used vehicles be maintained.
>> An independent inquiry into the smash repair industry to examine the relationships between insurers, parts suppliers and smash repair businesses.

In total, the committee made 20 recommendations. The inquiry was referred by the Senate in November 2014 and has held public hearings in Melbourne, Adelaide and Canberra.

Key committee members include Labor senator Kim Carr (pictured) and independent Nick Xenophon, who have both been notable campaigners for the retention of an Australian automotive industry post-2017.