Legislation strengthens future of automotive industry

The Rudd government today welcomed the passage through Parliament of a key component of its $6.2 billion New Car Plan for a Greener Future - the Automotive Transformation Scheme Bill 2009.

“The passage of this legislation marks an important day in the history of the Australian automotive industry,” said Innovation Minister, Senator Kim Carr.

“The legislation establishes the $3.4 billion Automotive Transformation Scheme (ATS) - a co-investment scheme that will help ensure the economic sustainability of the Australian automotive industry by stimulating investment and innovation.

“The 10-year ATS gives the automotive industry the policy certainty it needs to continue long-term strategic investment, in spite of the lingering effects of the global recession.

“This legislation demonstrates, once again, the Rudd government’s commitment to securing the long-term viability of the automotive industry and its 200,000 associated jobs.

“The legislation reinforces very stringent accountability and transparency requirements without jeopardising the competitive position of the 193 participants in the scheme.

“The government applauds the Opposition abandoning an amendment that had the potential to frighten off investment, kill innovation and destroy Australian jobs.

“The ATS places a renewed focus on innovation by increasing support for R&D investment.

“Innovation is the key to a greener and more competitive automotive industry. The ATS supports the development of new and greener technologies including vehicles with improved fuel efficiency and lower greenhouse gas emissions.

“The ATS also requires participants to demonstrate their commitment to boosting workforce skills - essential for a successful and innovative automotive industry.

“The Rudd government believes in a sustainable future for the Australian automotive industry. That is why we introduced the ATS as a mechanism for transforming the industry and to allow it to take full advantage of the significant opportunities in the 21st century.”

Assistance through the ATS will replace assistance currently provided by the Automotive Competitiveness and Investment Scheme (ACIS) from 1 January 2011. A transitionary bill, the ACIS Administration Amendment Bill 2009, has also been passed.