PM Transcripts

Transcripts from the Prime Ministers of Australia

Howard, John

Period of Service: 11/03/1996 - 03/12/2007
Release Date:
28/08/2006
Release Type:
Speech
Transcript ID:
22441
Released by:
  • Howard, John Winston
Launch of General Motors Holden Vehicles Elizabeth, South Australia

Thank you very much Mr Chairman, the Deputy Premier of South Australia Mr Kevin Foley, Senator Nick Minchin, the Minister for Finance and Leader of the Government in the Senate, David Fawcett the Federal Member for Wakefield, my other parliamentary colleagues, ladies and gentlemen. It was one of my predecessors Ben Chifley, who famously remarked she's a beauty when the first Holden ran off the assembly line way back in 1948, and since then Holden has been one of those iconic parts of Australian life. And it is important on an occasion such as this, when we mark an extraordinary act of faith by General Motors in the future of motor manufacturing in Australia and a great commitment to manufacturing industry, it's important to reflect for a moment on how far we have travelled in that more than 50 years since Ben Chifley proclaimed she's a beauty. I think she's a beauty as well and so is she, and I think we can truly say that, as the Deputy Premier remarked, that the great thing about the Australian motor industry now, and it's been the case for many years, but I think more so now because of the severity of competition and the global environment in which we will forever either sink or swim, it is important to note that Australian motor cars are selling, not only here but abroad, because of the quality and excellence of the product.

And what that modern day reality underlines, is a reality about our country, and that is it's remarkable adaptability. And if I am asked what are some of reasons for the extraordinary run of 15 years of uninterrupted economic growth that our nation continues to enjoy, one that must be put right at the top of the list of a number of explanations, is the capacity of the men and women in the Australian workforce to adapt to change, and also the adaptability of management to adapt to change and the willingness of investors, to back change and to take a risk. I certainly remember very well my first ministerial portfolio which was Minister for Business and Consumer Affairs, a job to which I was appointed late in 1975 as a very raw recruit into the Fraser Government. And I had administrative responsibility for what was then called the Industries Assistance Commission, and therefore administratively (inaudible) of responsibility for the formal or regulatory side of the application of the then, very complicated tariff regime that this country had. And the level of protection that was then extended to the Australian motor manufacturing industry in the mistaken belief, and I say this with the benefit of hindsight because at that particular time both sides of politics virtually vied with each other to demonstrate who was in favour of the higher level of protection. It's an indication of just how far we have moved. And now of course we see an industry transformed, we see an industry that has prospered in a more open, global, competitive environment. We see an industry that has got the benefits of generic, economic change and reform. There is little doubt that through the introduction of the new tax system some years ago, with the removal of the old wholesale sales tax, of what 22 per cent, on the motor car industry and its replacement with a GST and the ability to claim input tax credits, that the motor manufacturing industry in this country was greatly benefited by that particular change and added to some of the competitiveness that it now has. Of course the industry does face enormous challenges, particularly through high fuel prices. And high fuel prices are throwing out a challenge to all motor manufacturers around the world and Australia along with every other developed country is groaning under the weight of high fuel prices that are caused by the high price of crude oil. And the way in which the nation, the way in which individual companies respond to that, and I am delighted with the Managing Director's reaffirmation of the commitment of General Motors Holden to providing the LPG alternative, and the subsidy recently announced by me on behalf of the Government will provide people who wish to, with the option, of either converting an existing car to LPG or assistance if they buy a car that has that facility already installed.

Now none of these things are going to bring the price of petrol down, what they are going to do is to provide some kind of assistance at the margins. And it's important that governments, not only here in Australia but around the world, endeavour to do that. But I would like to do before formally dedicating this building and remarking how impressive the investment of what $533 million here in Adelaide is, is to restate the commitment of my Government to manufacturing industry in this country. I know that in effect, in the modern world, and because of what Australia is enjoying at the present time, energy is chic, so to speak. But, all we hear about often is the export of energy from this country and I applaud that, and we had the announcement of a wonderful $13 billion profit by BHP Billiton of which I am pleased to note about $4 billion will go to the Federal Treasury in tax. And that is good, because that will help to pay for all sorts of things. And we should remember that when company's make big profits and they are doing the right thing and paying their taxes, which they should be, then the nation as a whole benefits. And some of that $4 billion will help to pay for the two additional battalions that I announced last week, that the Australian Army is going to have, or the 422 additional federal police. But the point I want to make is that we should not lose sight at a time when there is so much focus on the importance of coal and iron-ore and LNG and other exports from this country, and a focus inevitably on where ultimately our uranium industry will go, and I know the uranium industry is very important to South Australia because of the Roxby Downs mine, we shouldn't lose sight of the fact that this company here employs 8000 Australians. We shouldn't lose sight of how important it is for us to maintain a manufacturing capacity and the successive policies of my Government have been dedicated to that end. And this is no more so of course than we find in the motor manufacturing industry. And I want the company, I want the workforce, I want the investors and I want the management to know that our Government does, and working I am pleased to say, in cooperation here with the South Australian Government, and we have worked cooperatively with the South Australian Government, and I take the opportunity of recording.

When there have been challenges with other companies, we've worked together to help, to make sure that the pain of adjustment and restructuring has not been too difficult for the workforce and we've worked together to provide additional incentives for companies to manufacture, not only in Australia, but here in South Australia. Manufacturing has always been very much at the heart of the employment base here in Elizabeth, and very much at the heart of the employment base here in South Australia. And I believe that there will be a continuing future for manufacturing in this country. It's a future that will change its form as the years go by, it's a future that will rely increasingly on innovation, it is a future that will rely forever, on having a decent share of the export market. We are a nation of only 20 million people and no matter how hard we work, and we work hard, no matter how smart we work, and we do work in a smart fashion, it will always be necessary for us to reach out and find a place in a wider market. And the whole world is our market now, and GMH's story, and our capacity to export and the wonderful new Statesman model that we see being released today will of course sell very heavily in the domestic market, and the export version, the Calais, that new vehicle, will I believe, maintain the reputation and the competitive edge of this country.

So, I congratulate the company, I thank the whole company for its faith in Australia, I congratulate the workforce. I just had the opportunity of walking through the assembly process and the efficiency, the fact that that huge conversion was completed without stopping any of the production process, and the pride the men I spoke to took in talking about how every process is done in 76 seconds, and how they get 300 or so done in every shift, and how there is a determination to maintain and improve that. It shows a company that has good employee relations, and they are always the most successful company, it shows an attitude of mind, and it shows the adaptability and the commitment of the Australian workforce which has been so important to the success of the Australian economy over the last 10 to15 years.

So Mr Chairman, Mr Managing Director, I have very great pleasure in declaring, is it dedicated, or solemnised, or blessed, that's all three, this wonderful new plant, and I thank everybody who has contributed to it, and I wish everybody well for a maintenance of that great icon of Australian manufacturing, the Holden motor car and everything that that entails.

Thank you so much.

[ends]

22441