Industry Minister Ian Macfarlane says he won’t be rushed into releasing the Productivity Commission review of the car industry, despite demands for speed from Holden and the South Australian Government.
The Federal Government has ordered an inquiry into ways to secure the future of Australia’s car-making industry.
The initial findings of the Productivity Commission inquiry will be released by December 20, but Macfarlane says the final report won’t be made public until April or May 2014.
The inquiry will look at Australia’s attractiveness for investment, how other countries assist their car industries, consumer preferences, workplace arrangements and how to make the most of research.
It will examine a range of ways to support the industry, including re-targeting the current Automotive Transformation Scheme and reducing taxes and red tape.
Macfarlane said he wasn’t ruling anything in or out, including the possibility of putting more government money into the industry.
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“This is the whole reason you have a defined process which is sure and sound, instead of just rushing at it and tossing money here and there, or turning your back,” he said.
“We need to know exactly what everyone else is doing.”
Holden and South Australian Premier Jay Weatherill want the report released as soon as possible.
However, Macfarlane said he would not be making long-term decisions without a full assessment.
“We can’t just throw out a heap of money and hope we can fix it, because that will inevitably lead to the failure of the car industry,” he said.
The minister will discuss the inquiry and future of the industry with Toyota executives in Japan this week.
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Treasurer Joe Hockey said the government was already helping the car industry by not going ahead with Labor’s fringe benefits tax hit on employer-provided vehicles and abolishing the carbon tax.
Ford signalled this year it would close its Victorian car-making facilities by October 2016.
Holden’s American owner General Motors is considering the future of its operations and is expected to clarify its position by Christmas. Last year, Holden reached a $275 million agreement with the Gillard and Weatherill governments to develop and build two new models from 2016.
But with the change of federal government and competitive conditions in the global car market, Holden may seek further help.
The State Government has an even stronger interest in Holden with the election last weekend of former Holden shop steward Jonathan Gee as the Party’s State President.
“The first position that I was elected to was as shop steward representing members at Holden Elizabeth,” he told the party’s convention.
“I am currently Vehicle Division Secretary within the Australian Manufacturing Workers Union (AMWU).
“I represent the Union and its members internationally.”
Gee said the automotive industry is vital to South Australia, supporting more than 13,000 jobs across the State’s economy.
“It is the backbone of our manufacturing industry.
“I will be using my time as State President of the Australian Labor Party to make sure that the interests of the thousands of workers and families who rely on the car industry for a living are supported.”
