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Greener: Holden's ECOmmodore concept.

Pressure mounts on Federal Government to fast-track $500 million green fund

15 Feb 2008

THE Australian Greens have urged prime minister Kevin Rudd to bring forward his $500 million Green Car Innovation Fund in the wake of last week’s decision to close Mitsubishi’s car manufacturing operations in South Australia.

SA Greens MP Mark Parnell said the green fund – announced in March last year and “designed to kick-start the manufacturing of low-emission vehicles such as hybrid, flexible fuel and low-emission diesel vehicles” – was not due to commence until 2011.

The details of its establishment will be part of the car industry review to be completed by July 31, and to be headed by former Victorian premier Steve Bracks.

“(SA premier) Mike Rann should be demanding Prime Minister Rudd provide support for a new future in car manufacturing right now – not just in three years time,” Mr Parnell said.

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“Future car manufacturing in South Australia must be focused on hybrid, electric or other green alternatives. In this age of peak oil, rising petrol prices and climate change, it’s foolhardy to continue to build large petrol-driven cars here.

“Unless we embrace a new type of car manufacturing, the depressing demise of Mitsubishi’s Australian operations will be repeated at Holden’s. The twin threats of peak oil and climate change will force our hand, unless we move decisively first.” Mr Parnell also said the government must look seriously at other manufacturing options for the Tonsley site that “focus on fixing up our urgent water, energy and public transport challenges”. “We face many urgent challenges, particularly around water security, public transport infrastructure and peak electricity demand,” he said.

“If we can create and manufacture home-grown solutions here, we can export our great ideas to the world, guaranteeing smart jobs into the future. We need to get smarter and recognise that the most sustainable industries are the ones building the next generation of green products.”

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