Senators slam government 'apathy'

The Turnbull government has responded to a report titled 'The future of Australia's Automotive Industry' just a month before the closure of the nation's two remaining car manufacturers, Holden and Toyota.

And two senators, Kim Carr and Nick Xenophon, have given the government an old-fashioned spray for sitting on the report for almost two years since it was tabled – and then rejecting several of the report's recommendations anyway.

The report was prepared by the Senate Economics References Committee and tabled 21 months ago, according to senator Xenophon of the Nick Xenophon Team (NXT).

"The government's pathetic response is almost two years overdue and mostly flies past many of the recommendations that were made to address the serious state the industry faces only a month before Holden and Toyota close their factory doors in Elizabeth and Altona," said Xenophon in a press release this week.

According to senator Xenophon, the government's response has ignored two key recommendations in the report: an automotive taskforce to address a severe skills shortage in the industry and extending the 'under-spent' Automotive Transformation Scheme (ATS).

Analysts have suggested in the past that the end of local automotive manufacturing – and the loss of 60,000 jobs – could be the tipping point for Australia to enter a recession for the first time in over 25 years. The ATS was aimed at assisting the smooth transition of the automotive manufacturing workforce to other forms of employment – and reduce the risk of economic fallout affecting the whole nation.

"But the federal government has done a Mr Magoo here," senator Xenophon continued. "Just like that elderly vision-impaired cartoon character, they've driven blindly through the problem seemingly oblivious to its existence."

The senator, who hails from South Australia, has a particular dog in the fight, with that state having lost Mitsubishi's Tonsley Park facility some years ago and now, Holden's Elizabeth plant from next month.

"Their solution to address the problem relies almost entirely on the $100 million Advanced Manufacturing Fund which was actually negotiated by NXT," he added.

"But the government says it won't divert any of the unspent capped ATS fund to broaden the scope of auto-related programs which would boost skills and create more jobs.

"What is most disturbing is that they can't see a need for an Automotive Industry Taskforce which the industry itself is crying out for."

In another press release – issued by Kim Carr, the Shadow Minister for Innovation, Industry, Science and Research – there was even more opprobrium. The Labor senator described the response as "a true reflection of the Abbott/Turnbull government's apathetic attitude towards the automotive industry".

According to senator Carr, the end of the auto manufacturing industry in Australia, with its concomitant woes for local parts suppliers, will cost the nation two per cent of GDP (gross domestic product), valued at $29 billion.

Beyond the economic strife, senator Carr points out, there's also the personal cost to employees – now counting 4000 more in Elizabeth (Holden) and Craigieburn, near Ford's Campbellfield plant, which closed late last year. Werribee and Derrimut, near Toyota's Altona plant, are also understood to be experiencing higher levels of unemployment, with the situation set to worsen from next month.

Senator Carr argues that the social welfare cost of unemployment benefits will "far exceed" the cost of retaining auto manufacturing industry in Australia.

The take-out from the government's response is that it sees the future of the automotive industry – the report was tabled after all three remaining manufacturers announced plant closures and a move to full-line importation – resting principally in R&D (research and development).

An 'Advanced Manufacturing Growth Fund' will commit to spending $47.5 million over two years 'high value' manufacturing in South Australian and Victoria. Additionally, $4 million will be available through the Advanced Manufacturing Growth Centre for the support of "small scale and pilot research projects in advanced manufacturing".

Varying sums have been set aside by government for "manufacturing research projects", "innovation labs" (test facilities) and engineering studies at tertiary/technology institutions.

The government is keeping the ATS in place until 2020, but has ruled out offering the unused portion of the scheme's budget to aftermarket parts manufacturers and caravan/trailer builders, a suggestion covered by several of the recommendations in the report by the Senate Economics References Committee, which included members of the Greens and the Australian Motor Enthusiasts' Party.

Pictured: Senator Nick Xenophon (left) and Senator Kim Carr (right). Courtesy of the ABC