Union joins car plan approval chorus
BY DAVID HASSALL AND MARTON PETTENDY | 11th Nov 2008
Dave Oliver, the national secretary of the Australian Manufacturing Workers’ Union (AMWU), which represents workers in the car industry, said that the $6.2 billion package allayed fears and put Australia on a good footing for international trade.
After criticising the previous government for “standing on the sidelines”, Mr Oliver said that prime minister Rudd “knows the importance of having a strong, viable automotive industry underpinning the manufacturing sector in this country”.
“As with all things, you don’t get everything you want,” said Mr Oliver, “but this package is about attracting investment to make companies internationally competitive.
“But it is critical that, when we negotiate future trade agreements, we remove all tariff and non-tariff barriers in those countries we are trading with.” Mr Oliver said that the unions will continue to participate in trade negotiations such as the ASEAN agreement and the Doha rounds to ensure that Australia is not disadvantaged.
“We’ve always been concerned about trade and we will continue to ensure that the agreements we negotiate have provisions that those countries we are doing trade agreements with remove trade barriers, tariff barriers and non-tariff barriers, as well to allow access to those markets.
“(Exporting) is the key. That’s been recognised. Over 50 per cent of what Holden and Toyota manufacture is exported – and we need to ensure that we can the get other companies such as Ford an export strategy.
“Based on what’s been announced today and, looking at what’s been happening recently with the Australian dollar, we’ve got a very good environment for exporting, so I think the concern about the tariffs has really been washed away by the rest of the package.
“This is not just the government handing out money, this is a government providing an environment to attract investment... so we are confident we will see investment coming into this industry that will actually create good, well-paid, full-time permanent jobs.
“We are concerned about what’s happening in the industry at the moment and that’s why we’re pleased with the announcement of the structural adjustment fund, which is going to assist workers in the adjustment process.
“Inevitably, there are going to be more redundancies – that’s not going to turn around overnight – but the structural adjustment program will assist workers who may become redundant in the short-term.” The Victorian Automotive Chamber of Commerce (VACC) also endorsed the Rudd government’s new car plan, calling it a solid and workable strategy.
“It should aid the industry in repositioning itself to tackle the many challenges it is currently facing,” said VACC executive director David Purchase.
“The fact the federal government is prepared to invest $6.2 billion over 13 years is impressive. What’s more, this now includes $3.4 billion of fresh funding to protect jobs.
“It sends the right message to the automotive manufacturing sector and backs up talk with action. It also sends the right message to employers and employees in the sector. Many of the apprentices who witnessed Mr Rudd’s speech at the ACE building will only have heard doom and gloom stories about the industry over the past few months.
“But today, like us, they will have been encouraged to hear the prime minister commit to the automotive sector as ‘the cornerstone of Australian industry’ and that it is ‘part of the future’.
“VACC also commends the government’s decision to immediately expand the LPG vehicle scheme by $10.5 million, which doubles the incentive for new private-use vehicles that are factory-fitted with LPG technology.” However, the VACC remains critical of the government’s decision to reduce new-car import tariffs.
“On the negative side, the government intends to follow the advice of the Bracks Report and halve tariffs from 10 per cent to 5 per cent in 2010,” said Mr Purchase. “VACC questions the benefit to Australia in ‘matching world’s best on tariffs’.
“However, overall, automotive manufacturers and suppliers can now start to confidently tool up for a more certain future.
“As Australia’s largest manufacturing sector and second-biggest exporter, the automotive industry is critical to the economy. It is good to see the government recognise this by injecting some much needed investment and confidence.” Of course, the Australian LPG industry also welcomed the government’s new $2000 subsidy for private buyers of new factory-fitted LPG passenger cars.
LPG Australia’s industry development manager, Phil Westlake, said that the doubling of the grant recognises the potential for gas to play a more important role in the greener future of Australian-made cars.
“Increasing the grant provides larger incentive to our three local car-makers to encourage further development of new LPG fuel-injection technologies that lower running costs and cut CO2 emissions,” said Mr Westlake.
“Wider adoption of LPG Autogas will allow Australians to further reduce their vehicle transport emissions (and) has the potential to reduce our dependence on imported oil.” RACV spokesman Michael Case told News Limited the plan was good news for car buyers and industry employees alike.
“We support a plan that will make the local car industry more economically and environmentally sustainable,” said Mr Case.
“It looks like a longer-term plan, which is what’s necessary here to green the industry. It’s certainly good news for car buyers, who will have greener, safer, affordable vehicle choices in the future.
“We’re hoping the plan will provide more choice and make fuel-efficient vehicles cheaper by virtue of increased local production.” Echoing those comments was the Motor Trades Association of Australia (MTAA).
The MTAA said that the new car plan is “a well-articulated and considered policy response to the environmental challenges of transferring to a carbon-restricted economy”.
“The government’s decision to assist and cooperate with vehicle and component manufacturers during the adoption of green vehicle technology is innovative and recognises the complexities of the global supply chain,” said an MTAA statement.
“The mutuality of obligation which underpins the new car plan illustrates the need for a united response from industry and government and acknowledges that investment in innovation requires long-term commitment and support from all parties.
“MTAA considers that the framework of the new car plan… is a sensible and measured response to the challenges facing the Australian automotive industry and will achieve its objectives of creating a technologically innovative, greener and profitable manufacturing sector.
“The commitment of $6.4 billion dollars of targeted assistance illustrates the government’s commitment to the future of Australia’s automotive industry and is supported by MTAA.
“The association particularly welcomes the announcement of the doubling of the LPG vehicle scheme for new vehicles. This represents an immediate and tangible response to the issue of climate change and may stimulate vehicle sales.”
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