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Automotive Transformation Scheme Amendment (Securing the Automotive Component Industry) Bill 2015

Schedule 1 Amendments

   

Automotive Transformation Scheme Act 2009

1  Subsection 3(1)

Repeal the subsection, substitute:

             (1)  The objects of this Act are:

                     (a)  to:

                              (i)  encourage competitive investment and innovation in the Australian automotive industry; and

                             (ii)  place the industry on an economically sustainable footing;

                            by providing assistance to a participant in the Automotive Transformation Scheme based on the participant’s investment if the investment is of a kind prescribed by the Scheme; and

                     (b)  to support the Australian automotive industry in its transition away from dependence on major motor vehicle producers as those producers reduce and cease their Australia operations; and

                     (c)  to encourage the design and manufacturing of clean energy technologies and the production of motor vehicles that are not powered by fossil fuels.

2  After section 3

Insert:

3A   General principles guiding actions under this Act and the Automotive Transformation Scheme

             (1)  The production of electric motor vehicles and other motor vehicles not powered by fossil fuels should be promoted.

             (2)  Automotive component producers should be assisted in:

                     (a)  producing, or helping to produce, components for use in motor vehicles not powered by fossil fuels; and

                     (b)  diversifying to produce, or help to produce, components for use in clean energy technologies.

             (3)  Employment opportunities in the automotive industry for people who have been made redundant by producers of motor vehicles, or automotive components, or people who have been affected by such redundancies, should be considered when prioritising assistance to be given under the Automotive Transformation Scheme.

             (4)  Assistance under the scheme should focus on promoting quality production and manufacturing in the automotive industry.

Automotive Transformation Scheme Regulations 2010

3  After paragraph 2 .4(1)(b)

Insert:

                   (ba)  if neither paragraph (a) nor (b) applies—in the 12 months preceding that application the person produced in Australia:

                              (i)  electric motor vehicles or other vehicles not powered by fossil fuels; or

                             (ii)  engines for such vehicles; or

4  Paragraph 2.4(1)(c)

Omit “neither paragraph (a) nor (b) applies”, substitute “paragraphs (a), (b) and (ba) do not apply”.

5  After paragraph 2 .5(1)(b)

Insert:

                   (ba)  if neither paragraph (a) nor (b) applies—in the 12 months preceding the application the person produced in Australia at least one kind of automotive component for use as original equipment in:

                              (i)  electric motor vehicles or other vehicles not powered by fossil fuels; or

                             (ii)  engines for such vehicles; or

6  Paragraph 2.5(1)(c)

Omit “neither paragraph (a) nor (b) applies”, substitute “paragraphs (a), (b) and (ba) do not apply”.

7  After subregulation 2.8(4)

Insert:

          (4A)  Despite subregulations (2) and (4), if the Minister is satisfied that , subject to the person’s meeting all the registration requirements (other than the requirements set out in subregulation (3)):

                     (a)  the person will produce electric motor vehicles or other motor vehicles not powered by fossil fuels; and

                     (b)  the person will do so in a location where one or more MVPs operate at the time of the application;

the Minister must grant the person permission to apply for registration.

8  After paragraph 3 .12(2)(a)

Insert:

                    (aa)  have regard to the need to prioritise the payment of assistance to ACPs who produce components for electric motor vehicles or other motor vehicles not powered by fossil fuels; and

9  Appropriation

An amount of uncapped assistance that is payable by the Commonwealth under the Automotive Transformation Scheme Act 2009 as a result of the amendments made by this Schedule is to be funded out of money appropriated by the Parliament for the purposes of such a payment.