Prime Minister Julia Gillard and Innovation Minister Kim Carr have met with senior industry figures to ‘guarantee the future of the car industry in Australia’, after speculation that the Liberal Party is ‘hostile’ towards manufacturing.
According to a press notice from Senator Kim Carr, Tony Abbott has ‘targeted car manufacturing’ by proposing to take $500 million from the Automotive Transformation Scheme.
According to Senator Carr, this move shows Abbott’s “callous disregard for the future of the automotive industry and the 200,000 workers and their families who depend upon it.”
“The recent floods and other natural disasters across our nation represent an extraordinary and unprecedented set of circumstances,” said Senator Carr.
“This has required some tough budget cutbacks, including savings in the Federal Government’s New Car Plan, so that funds can be redirected into the rebuilding of roads, bridges, rail lines and public facilities in flood ravaged communities.
“But the Government understands the need for certainty and the long lead times for investment in the highly competitive automotive industry.”
The Prime Minister and Senator Carr have confirmed to the automotive industry that all other parts of the New Car Plan for a Greener Future will be retained.
The New Car Plan reportedly helped see Australia through the worst economic crisis faced by manufacturing since the Great Depression and the changes will help ensure its future.
Senator Carr said it was a capital intensive industry and it was important that Australian car producers remained at the forefront of development.
“What we are making is a commitment to all other elements of the New Car Plan. That includes the Automotive Transformation Scheme, the Automotive Industrial Structural Adjustment Program, the Automotive Supply Chain Program, the Automotive Market Access Program and the Automotive Industry Innovation Council,” Senator Carr said.
“This underwrites high-skilled, high-tech manufacturing jobs and a more productive economy.
“The New Car Plan will help attract and retain international investment and foster continuous innovation within the industry.”