Labor Supports Revamped Assistance Scheme For The Auto Industry

Media Statement - 19 August 2002

Labor supports ongoing assistance for the automotive industry beyond 2005, including a revamp of the Automotive Competitiveness and Investment Scheme (ACIS) to give greater emphasis to R&D, training and investment.

An ACIS with greater support for R&D, training and investment by car makers and component producers is consistent with Labor's emphasis on innovation in its approach to industry policy.

Any decisions on future tariff rates should be contingent on the continuation of ACIS.

Economic modelling by the Productivity Commission suggests that national gains from reducing automotive tariffs below 10 per cent would be negligible or even negative.

The Government brought forward the Commission's current review of post-2005 assistance arrangements for the automotive industry only after sustained pressure from Labor and the industry.

A Labor Government will initiate a further early review of post-2010 assistance arrangements, to be conducted in 2006-07.

We agree with the Productivity Commission that future assistance arrangements should not be conditional on the industry pursuing the Government's industrial relations agenda.

Labor supports the convening of roundtable discussions involving the automotive industry and unions to achieve cooperative solutions to future workplace relations issues, including the forthcoming series of enterprise bargains.

Labor's final position on future assistance arrangements for the automotive industry will be determined after the release of the Productivity Commission's final report, due in September. However, Labor will not be changing its position on the continuation of ACIS.