State Government releases Productivity Commission submission


The South Australian Government has released its submission to the Productivity Commission’s review into the auto industry and called on the commonwealth to provide easier access for Australia’s car and component producers to international markets, reports the SA government.

Holden assembly line Image credit: flickr User:  HoskingIndustries
Holden assembly line
Image credit: flickr User: HoskingIndustries

Premier Jay Weatherill yesterday released the State Government’s submission and asked the Liberal Opposition to publicly share its vision for the future of the industry.

“The Opposition Leader has often repeated his support for a Productivity Commission Review, so I call on him today to publicly release his party’s submission and spell out his plan and recommendations for the future of our car industry.”

“We’ve made a detailed submission to the commission containing 10 key recommendations aimed at keeping a viable auto manufacturing industry operating in Australia,” Mr. Weatherill said.

One of the key recommendations of the submission is the request for the Federal government to reinstate the $500 million it has removed from the Auto Industry Assistance Package.

The SA submission also urged the Productivity Commission to take into consideration the need for significant additional targeted assistance for affected businesses, workers and regions, should auto industry funding be reduced.

According to Manufacturing Minister Tom Kanyon, the threat to the future of Holden and the wider auto industry had put 13,000 jobs in SA in jeopardy.

“If Holden stops production at Elizabeth, thousands of jobs will go and we’ll lose a whole range of manufacturing skills and knowledge which won’t be replaced for decades,” Mr Kenyon said.

“We’ll also lose a valuable training ground for other areas of our economy, such as mining, defence, engineering and technology.”

According to an article featured on Yahoo 7 news, Holden indicated that it will not make a decision with regards to its future in Australia until after the commonwealth rules on future assistance in the new year.

Other recommendations in the State Government’s submission include:

• The Federal Government continues assistance to secure a sustainable automotive industry based on its direct contribution to the economy.

• Further reductions in Australian automotive industry assistance should be avoided.

• The Federal Government continues automotive tariffs at current levels.

• The Productivity Commission takes into account the need for significant additional targeted assistance for affected businesses, workers and regions, and other costs in their analysis of any reductions in auto industry assistance.

• As a matter of urgency, the Federal Government pursues improved market access for Australian produced vehicles and automotive components.

The Productivity Commission is sitting in Adelaide on Monday.