CHECK AGAINST DELIVERYYSfgL EM3ARGOED UNTIL DELIVERY
Pr N jlv9E-:' M-NNIIS7ER
SPEECH BY TiE P 111E 1IiNISThP
OPENI NG OF FOD'S NEW 4 CYL1ttPER ENGGIE PLANT
GEELOiJG 1 OCTOBER 1983
IT GIVES, ME GREAT1 PLEASURE TO OPENi FORD'S NEW FOIUR
CYLINDER ENGINE PLANTTHIS,
TOGETirER WITH THE RECENTLY COMMISSIONED
ROBOT-EQUIPPED SHEET METAL SUB-ASSEMBLY FACILITY AND
UPGRADING OF THE STAMPTNG PLANT, INVOLVES AN INVESTMENT OF
NEARLY $ 100 MiLLIO14 IN ADDITIONAL FACILITIES AT GEELONGWITH
THIS ! INVESTMENT FORD WILL RAISE THE TELSTAR'S
LOCAL CONTENT BY SOMETHING LIKE 15 PER CENT AND GEtE RATE 260
NEWd JOBS HERE AND AErliTIONAL JOSS IN SUPPLIER COtiPAHIESCOMING
AT A TIME 11HEN OTHER MAJOR AUSTRALIAN MOTOR
VEHiCLE MANUFACTURERS ARE EXPE ! ENC I G COIlSIDERABLE
DIFFICULTIES, FORD'S EXAMPLE IS ENCOURAGING.
THE' CONSTRUCTION OF THESE FACILITIES, WHICH i'li DiX
HAS ALREADY EMPHASISED WERE CONCEIVED BY FORm AUSTRALIA
ENGI NEERS A: ID LARGELY iNSTALLED BY THE COMP: ANY'S OWN
WORKFORCE, REPRESENTS A CLEA R DEIMONSTRATION OF FORD'S
COMIITMENT TO CONTINUED IOT3r VEHICLE PRODUCTIONl INq GEEILON'G.
EGUAL IMPORTANTLY.. THEY IIGHLIGHT THE DIPECTION
IN WHICll PRODUCT! ON NOT ONLY 1I, THE MOTOR VEHICLE INDUSTRY
BUT ALSO IN OTHER MANUFACTURING INDUSTRIES WILL NEED TO
MOVE IF AUSTRALIA'S INDUSTRY IS TO SURVIVE AND PROSPER IN
FUTUREø IN ESSENCE, THIS INVOLVES THE APPLICATION OF NEW
TECHNOLOGY IN A MANNER DESIGNED TO SECURE INCREASED
PRODUCTIVITY AND GREATER COMPETITIVENESS IN BOTH DOMESTIC
AND EXPORT MARKETS.
IT IS PARTICULARLY SIGNIFICANT THAT THE 2.0 LITRE
AND 1.6 L'ITRE ENGINES BEING PRODUCED AT THIS PLANT ARE
DESTINED FOR EXPORT TO NE-, ZEALAND AS WELL AS FOR THE
DOMESTIC MARKETAN EFFECTIVE EXPORT ORIENTATION MUST BE A
SIGNIFICANT FEATURE IN THE REQUIRED ADJUSTMENT OF AUSTRALIAN
MANUFACTURING INDUSTRY.
As WELL, THE EFFECTIVENESS WITH WHICH WE APPLY INEW
TECHNOLOGY WILL DETERMINE NOT ONLY THE EFFICIENCY OF
AUSTRALIAN INDUSTRY, ITS COMPETITIVE PERFORMANCE AND ITS
CAPACITY TO GROW, BUT ALSO WHETHER WE CAN ADDRESS
EFFECTIVELY THE DISASTROUS EMPLOYM-ENT PROBLEMS OF RECENT
YEARS, AND REVERSE THE LONG DO'VINIARD SLIDE iN OUR LIVIHG
STANDARDS RELATIVE TO OTHER INDUSTRIAL COUNTRIES-
WHILE CYCLICAL FACTOPS EXPLAIN PART OF OUR CURRENT
ECONOMIC DIFFICULTIES, A LARGE COMPONENT IS STRUCTURAL AND
REFLECTS THE ENTRENCHMENT. OF LOW PRODUCTIVITY AND
INAPPROPRIATE PRODUCTION F4TTERNS IN MANY PARTS OF OUR
E CO0NOMY.~ F-OR THIS REASON, THE DEVELOPMENT AND APPLICATION OF
NEW TECHNOLOGY MUST BE EMBRACEDTHERE
IS, WHETHER WE LIKE IT OR NOT, NO ESCAPING
THE FACT THAT INNOVATION IS ESSENTIAL TO OUR NATION'S FUTUJRE
WELL-BEING, NOT ONLY ! N INDUSTRIES PRODUCING NEW PRODUCTS,
BUT ALSO tHROUGHOIT ESTABLISHED INDUSTRIES, SUCH AS THE
MOTOR VEHICLE INDUSTRYFOR
THIS REASON, I APPLAUD FORD'S INITIATIVE IN
ESTABLISHING THESE FACILITIESI
PARTICULARLY APPRECIATED M1R Dix's REFERENCE TO
THE COMPANY'S ATTEMPTS TO ENCOURAGE GREATER EMPLOYEE
PARTICIPATION IN PROBLEM SOLVING AND DECISION-MAKING WITH A
VIEW TO INCREASING JOB SATISFACTION AND IMPROVING
COMPETITIVENESSEFFECTIVE CONSULTATIVE ARRANGEMENTS AT THE W01K
LEVEL ARE, IBELIEVE, CRUCIAL TO THE SUCCESSFUL
IMPLEMENTATION OF NJEW TECHN IQUES OF PRODUCT IOA.
TH-E MANUFACTURE OF PASSErGER CARS AND COMIFONENTS IN
AUSTRALIA IS A MAJOR ECONOMIC ACTIVITY.
IT DIRECTLY EMPLOYS ABOUT 60,000 PEOPLE AND
ACCOUNTS FOR 6 PER CENT OF TOTAL MANUFACTURING ACTIVITY ( 11
PER CENT IN THE CASE OF VICTORIA).
THE GROSS VALUE OF PRODUCTION IS ABOUT 1 PER CENT
OF O-' R GROSS DOMESTIC PRODUCT.
THE TOTAL AUTOMOBILE INDUSTRY, IS BIGGER STILL.
4IHEN WE TAKE INTO ACCOUNT THE MANUFACTURE OF
COMMERCI'A VEHICLES, IMPORTING, DISTRIBUTION, RETAILING AND
SERVICING, WE ARE LOOKING AT ABOUT A QUARTER OF A MILLION
EMPLOYEES. IN -hEW OF THE IMPORTANCE OF THE LOCAL MOTOR
VEHICLE MANUFACTURING INDUSTRY, IT IS A MATTER OF CONCERN
THAT ITS COMPETITITIVE POSITION HAS DETERIORATED SIGNIFICANTLY
SINCE THE MID-1970' s.
NOTWITH:: TANDING THE PROVISION OF SUBSTANTIAL
ASSISTANCE EMPLOY; IENT IN THE INDUSTRY HAS NOT BEEN
MAINTAINED.
EmPLOYMAEN1 HAS FALLEN DESPITE THE FACT THAT
ASSISTANCE HAS DOUBL.' D OVER THE PERIOD To 14 TIMES THE
AVEPAGE OF MANUFACTU I LJG INDUSTRY, AND NOW AMOUNTS TO
SOMa__ TH i NG LIKE $ 130 P. A. FOR EVERY MAN, WO1MAN AND CH-IILD 1I;
AUSTRAL IA. AS A CONSEQUENCE OF THE DETERIORATION IN
COMPETrITIVENESS AND THE RECENT RECESSION, PROFITAB-LITY I
THE NDUSTRY HAS BEEN SEVEkELY DEPRESSEDGrIH'S
DECISION L-AST WEEK TO0 CLOSE ITS ACACIA RIDGE
PLANT IIN QUEENSLAND IS THE MOST RECENT DEtIONSTRAT ION OF THE
DEGREE OFDIFFICULTY INVOLVED.
THAT DECISION INVOLVES SIGNIFICANiT AD~ jUST; I! ENT
PROBLEMS IN QUEENSLAND BUT OPPORTUNITIES ALSO FOR AN
APPROPRIATE MEASURE OF RATIONALISATION OF INDUSTRY
STRUCTURES AND EXPANSION IN AuSTRALIA.
FORD NEVERTHELESS HAS MANAGED TO D) EFY THE GENE4r. RAL
VE'IlCLE INDUSTRY TREND IN A REMARKABLE FASHION"
FORD'S PRINCIPAL ASSEITS HAVE INCLUDED THE QUALITY
OF 1.5 PRODUCT, ESPECIALLY THE ME FALCON WHICH WON AN
INDUS$ RIAL DESIGN COUN~ CIL AWARD, AND THE PUBLIC . CCETANCE
OF IT LASER/ rIETEOR/ TELSTAR RANGI-: E.
IHE LOC AL INDUST RY~ FAC ES S I I F I%-' ANT CH ALL. ENGES
OVER AND ABOVE TH'E CURRE-NT RELAT IVELY i DF. P R ES SET
DEMAND, IIN PART TO THE GENERAL ECONO-MIC 51 TUAT I Oi,.
PRODUCERS H. VE WITNESSED A SGlisFICANT S'YWiNG" TO IMPORTlE D
L I G HT COjMM I AL AIND F WH EE L D RI VE V E H 1 C LES WI cH A RE
NOT SUBJECT THE SAIME QUANTITATIVYE RE STR ICT IONS AND R~ ATES
OF DUTY AS PA.' SENGER CARS AND EXPORT FACILITATiON HAS
ADV1ERSELY AFFE : TED A N4UMBER OF COMFONENrF SUPPLIERSTHE
Go\-ERNMENT HAS RECEIVED MANY AND VARIED VIEWS
O N SE MATTERS. 11N THE L I .' HT O F T HE S E, MY C OL LEAG UE JO HN BUT TON
ANNOUNCED LAST WEEK, THAT:
THE IAC' WOULD BE ASK" ED TO I NOU 1RE I NTO ALLEGAT iONS
THAT THE MARI ET FOR PASSENGER CARS IS B; EING
SIGINIFICANTLY AFFECTED BY IMPORTS OF CER~ TAIN LIGjHT
COI-1-ERC IAL AND FOUR-WHE'" L Dk IVE VEHI1CL. ES; AND THAT
A CAR INDUSTRY COUNCIL IS TO BE ESTABLISHED TO
REPORT ON SUCH IMP'ORTS AS WELL AS POST-198Lj
ARRANGEtXENTS THE CAR INDUSTRY COUNC IL IS0 ." LSO
BEING ASKED TO CON3) IDER HOW JOINT ACTIO. W BY
COMPONENT AND VEHICLE PRODUCERS, TPADE UN liO:: S AND
PERHAPS GOVEJRNMENT MI C'H' ACH IEVE I NCREASES ' N
EFFICIENCY OF PRODUCTION-
BOTH ENQUIRIES ARE TO REPORT BY 14 DECEMBER.
As JOHN BUTTON POINTED OUT, THE PROPOSED COUNCIL'S
TERMS OF REFERENCE MAKE CLEAR THE GOVERNMENT'S CONViCTION
THAT EXPOSURE TO THE DISCIPLINE OF IMPORT COMPETITION IS
NECESSARY FOR THE HEALTHY DEVELOPMENT OF THE INDUSTRY.
THE AIM OF THE EXERCISE IS TO REACH DECISIONS
WHICH, WHILE AT LEAST MAINTAINING THE INDUSTRY'S OVERALL
EXPOSURE TO IMPORT COMPETITION, WOULD IMPROVE ITS EFFICIENCY
AND LONG-TERM VIABILITY.
, RATHER THAN INTRODUCING UNCERTAINTY AND DISRUPTING
THE INDUSTRY AS MR PEACOCK HAS SUGGESTED, THE APPROACH WE
ARE PU.-SUING SHOULD SEE THIS INDUSTRY SECURELY ESTABLISHED
ON A SOUND LONG-TERM FOOTING.
SSUPPORT JOHN BUTTON'S STATEMENT THAT WE SHOULD
NOT BE LOO ING TO INCREASES IN THE DEGREE TO WHICH CAR AND
COMPONENT PRODUCERS ARE INSULATED FROM WORLD COMPETITION AS
A SOLUTION " O THE INDUSTRY'S PROBLEMWHILE
MY GOVERNMENT IS COMMITTED IN CURRENT
ECONOMIC CUR:. UMSTANCES TO MAINTENENCE OF EXISTING
PROTECTION ARR; NGEMENTS, IT DOES NOT SEE AlY ROLE FOR
INCREASES IN PiRTECTION FOR THE MOTOR VEHICLE I: NDUSTRY-
INE-D, THE FACI THAT THE CURRENT COST OF SUCH PROTECTION TO
CONSUMERS IS APPRCXIMA\ TELY $ 2 BILLION COUPLED WilH THE
MANIFEST INABILITY OF T1HI S PRiOTECTION TO MAINTAIN
' EMPLOYMENT, SUGGESTS THAT IT WOULD BE EXTREMELY DIFFICUL! TO
JUSTIFY FURTHEA INCREASES AT THIS POIlT OF TIMEEMPLOYERS
AND EMPLOYEES IN ALL SECTORS OF TH::
INDUSTRY FNEED TO REALISE THAT THE LONG-TERM VIABILITY OF
FIRMS AND JOBS CANNOT BE ACHIEVED IN THAT WAY; DISPARITIES
BETWEEN PROTECTION LEVELS FOR THIS INDUSTRY AND OTHEF:
MIANUFACTURING NEED TO BE LESSENED RATHER THAN W! DENED*
-VIABILITY AND JOB OPPORTUNITIES REQUIRE INSTEAD
THAT ALL SECTORS OF THE INDUSTRY WORK TOGETHER TOWARDS A
COMMON GOALWITH JOHN BUTTON I BELIEVE THAT OVER THE NEXT FEWYEARS
WE NEED TO TACKLE BY JOINT ACTION SUCH MATTERS AS:
IMPROVING PRODUCTIVITY iAND INDUST RIAL RELAT! NS
S SOURCING OF COMPONENTRY
THE IMPACT OF NEW TECHNOLOGY
THE RESPGCSIVENESS OF THE INDUSTRY TO CHANGES I N
CONSUMER PREFERENCES AS THEY EMERGE, AND
THE RETENTION OF DESIGNIER SKILLS IN AUSTRALIA
J
THERE IS NO DOUIBT THAT THE MOTOR VEHICLE INDUSTRY,
LIKE MANY OTHER OF OUR MANUFACTURING INDUSTRIES, IS STANDING
AT TIE CROSSROADS. IF THE INDUSTRY IS TO SURVIVE, IT MUST
APPLY NEW TECHNOLOGIES IN A MANNER DESIGNED TO ENHANCE
COMPET; TIVENESS AND, THEREFORE, PROFITABILITY AND
EMPLOYME NT MY GOVERNMENT AIMS TO DO WHAT IT CAN TO PROMOTE
SUCH A POSITIVE APPROACH. IT IS ENCOURAGED BY THE EXAMPLE
FORD NOW OFFERS THE INDUSTRY.
MR DIX'S PARTICIPATION IN THE CAR INDUSTRY COUNCIL
GIVES ME ADDED CONFIDENCEAUSTRALIA WOULD BE SERVED WELL IF FORD'S EXAMPLE OF
AN APPROPRIATELY INNOVATIVE APPROACH AS EMBODIED IN THIS
MAJOR INVESTMENT WERE EXTENDED AND CARRIED FURTHER BY FORD
AND OTHERS IN THE Ilil) USTRY*