Carr dumped from inner cabinet
BY RON HAMMERTON | 12th Dec 2011
While Senator Carr will still have a major influence on the course of the local car-makers in his new portfolio of manufacturing, he will have to operate in the outer cabinet, outside the core group of powerbrokers who call the shots on government direction.
Senator Carr’s former portfolios of industry and innovation have been handed to climate change minister Greg Combet, a former secretary of the Australian Council of Trade Unions.
According to Canberra reports, the demotion of Senator Carr appeared to be payback for switching his support from Ms Gillard to former prime minister Kevin Rudd as parliamentary leader of the Labor Party.
Senator Carr alluded to his unhappiness with the change, saying in a statement that it was not of his choosing, nevertheless adding that his new portfolio of manufacturing was "a job I am honoured to do".
A nervous Australian motor industry put on a brave face over the switch, with the Federal Chamber of Automotive Industries saying it welcomed the retention of Senator Carr as manufacturing minister.
FCAI chief executive Ian Chalmers said Senator Carr had been a strong champion of Australian industry and the automotive industry during his time in cabinet as the industry and innovation minister.
“We look forward to continuing to work with him,” said Mr Chalmers.
“We are disappointed, however, that the manufacturing industry no longer has a direct voice in cabinet.”
Nevertheless, Mr Chalmers said the industry welcomed the portfolio switch to Mr Combet.
“FCAI also looks forward to building a strong and productive working relationship with Minister Combet, similar to that which we have with Senator Carr,” he said.
“We will be drawing Minister Combet’s attention to the priority issues on which we seek to continue to work collaboratively.
“The Australian automotive industry requires long-term manufacturing policy that provides business with the certainty to make Australian industry globally competitive.
“This includes acting quickly to ensure the design of the Clean Energy Future programs will attract investment to Australia by offsetting the impact of the carbon price on the competitiveness of Australian industry.
“It also means committing to a long-term partnership with the Australian automotive industry, which operates in one of the most open car markets in the world, to ensure that it is truly competitive when vying with other auto nations for the global investment dollar.”The ministerial switch comes just days after FCAI president and GM Holden chairman Mike Devereux went before the National Press Club in Canberra to plead the case for continued government support for the three remaining Australia car-makers, saying Australia not only had the lowest tariffs of any car-making country but also the lowest levels of government assistance.
The industry was upset when the government cancelled the last $800 million of the Green Car Innovation Fund that provided one-dollar-for-three-dollars assistance to car-makers and parts suppliers to deliver new green cars and technologies for production.
Canberra rumours suggest Senator Carr was left in the dark on the cuts until it was too late.
Mr Combet, from New South Wales, is new to the industry portfolio, but made himself acquainted with industry leaders when he addressed the annual general meeting of the FCAI in May, delivering an impassioned defence of the government’s carbon tax.
Mr Chalmers said Australia’s automotive industry had a long history of working productively with governments to maintain a strong and innovative local manufacturing industry.
“This is needed to enhance the nation’s transition to a knowledge economy,” he said.
Senator Carr’s home state of Victoria will be one of the worst hit if the motor industry collapses in Australia.
Like his Liberal predecessor Nick Minchin – from South Australia, the other main car industry manufacturing state – and fellow Victorian John Button, who was industry minister in the Hawke-Keating years, he is well aware of the implications.
