The Mitsubishi Motor Corporation today outlined a new global business plan affecting its manufacturing operations in North America, Japan and Australia.
Mitsubishi has announced that it will continue to manufacture vehicles in Australia and confirmed its intention to proceed with a $600 million investment to build a new, locally produced model at the Tonsley Park plant from October 2005.
Regrettably, Mitsubishi has decided to phase out engine production at its Lonsdale plant. Further reductions in Mitsubishi's Australian workforce will be realised through a voluntary redundancy programme.
While Mitsubishi's commitment to the new locally produced model is a very welcome development, the decision on the Lonsdale plant and the workforce reductions will come as a great blow to many of Mitsubishi's workers and their families.
The Australian Government will be putting in place an extensive $50 million package of assistance measures in response to Mitsubishi Motor Corporation's announcement.
The Australian Government package will involve a combination of labour market programme assistance tailored to meet the needs of displaced workers as well as a range of industry facilitation measures that will seek to attract new investment and create job opportunities in South Australia.
Specifically, the Australian Government package will involve:
Around $10 million for labour market programme assistance that will involve intensive, customised support for workers at both the Tonsley Park and Lonsdale plants with immediate assistance eligibility for all displaced workers.
- This support will include access to an individual consultant who will provide a range of specialised advice including: job search training and advice; access to job vacancies; access to the Job Seeker Account and the Training Account for mature age and Indigenous job seekers. There will also be access to the New Enterprise Incentive Scheme (NEIS) to provide assistance to displaced workers to take up attractive small business opportunities.
A further $40 million will be available for various investment facilitation and structural adjustment measures designed to boost investment in South Australia and create new job opportunities.
This will involve funding for Invest Australia to work with the South Australian Government and Mitsubishi Australia to find new business opportunities for the Lonsdale site which may involve new business partners or the complete sale of Lonsdale given its commercial potential.
Invest Australia will also be funded to intensify its efforts in identifying viable commercial opportunities for South Australia using its international networks to promote and facilitate new investment opportunities.
The proposed establishment of a South Australia Structural Adjustment Fund that will seek to create sustainable private sector employment opportunities. It is proposed that up to 50 per cent of funding for projects under this measure will come from the Australian Government - consistent with the Newcastle Structural Adjustment Fund that was established following the decommissioning of the BHP Newcastle steelworks in 1999.
I have today discussed the matter with the South Australian Premier and we are both resolved to continue the concerted bipartisan effort by our governments to secure the future of Mitsubishi's Australian manufacturing operations. I pay tribute to the hard work of both the Federal Industry Minister, the Hon Ian Macfarlane, and the South Australian Treasurer, the Hon Kevin Foley.
In addition to the Australian Government's $50 million package, the South Australian Government will also be offering support. The Premier, Mr Rann will outline a number of initiatives which will provide further TAFE and training assistance to affected workers.
A Task Force of Australian Government officials, led by the Department of Industry, Tourism and Resources and comprising officials from the Departments of the Prime Minister Cabinet; Employment and Workplace Relations; Defence; Transport and Regional Services and Education, Science and Training will be established to co-ordinate a whole of government implementation of these assistance measures.
The Australian Government expects that Mitsubishi will fully honour its employee entitlement obligations and strongly encourages Mitsubishi to do all it can to assist its workers.
I have enormous sympathy for those workers and their families who will be adversely affected by Mitsubishi's announcement today. However, this package will provide a solid basis for meeting the needs of the displaced workers from Mitsubishi and their families.
Mitsubishi's restructuring plan is in response to financial difficulties which have plagued the company's worldwide operations in recent times. Mitsubishi Motors is also taking action to reduce capacity at a number of other locations in its global manufacturing network.
Over recent weeks, the Australian Government, in conjunction with the South Australian Government, has emphasised to Mitsubishi Motor Corporation the value we place on its contribution to the Australian automotive industry and we have urged it to continue its operations in Australia.
The Australian Government will continue to work closely with the company and the South Australian Government to ensure that the pain and disruption to workers and their families is minimised.