Mr MARTYN EVANS(4.06 p.m.) —The importance of the motor vehicle manufacturing industry to Australia really goes without saying. That is part of the problem, I suspect. This industry is so important that we can, at times, take it for granted. I suspect that the leadership of the government in this place is taking it for granted and is at risk, in its the adoption of the Industry Commission's recommendations, of putting the jobs of those workers not only in my electorate and my state but indeed right across Australia at risk. Because something is so important that it goes without saying does not mean that we should not, from time to time, remind ourselves of the very great importance of that industry to Australia.

Nearly 50,000 jobs across Australia—half of them in manufacturing; half of them in the related component manufacturing industries—are vitally important to the 50,000 families that are associated with them and to states like South Australia, which play a very vital role in the industry. My own state of South Australia has some 25 per cent of the work force employed in the motor vehicle industry. That means that it is a very important industry to us in South Australia. The impact on regional economies can never be understated. We must constantly remind ourselves of the devastating impact which any withdrawal of support for this industry would have on the regional economy of South Australia.

I do not support the maintenance of inefficient industries through high levels of tariff; but, unfortunately, the Liberal and National parties throughout history have had only two levels of commitment to tariffs: they have been either on or off. During the Second World War and post the Second World War, they promoted massive tariffs across the board, and in particular on this industry, and then we saw in the Fightback options and beyond a commitment to zero tariff policies. It is this on again, off again adoption of tariffs which has been the cause of the problems to date.

Indeed, the member for Corangamite (Mr McArthur) has correctly pointed out the gains—as has been pointed out by the member for Calwell, Andrew Theophanous, in his motion—which we have made through managed tariff reform. That is the distinction to be drawn here: managed, moderate tariff reform—in other words, the Button plan. It was the Button plan which gave us the increase in industry productivity. It was the Button plan which gave us the massive increase in exports from this industry. It was the Button plan that protected jobs and gave that industry—and particularly the industry in South Australia—a future. It is the managed—

Mr McArthur interjecting—

Mr MARTYN EVANS —Of course, the member for Corangamite interjects outside of his seat, but the reality is that his remarks ignore the importance of this industry to South Australia. I am sure that some honourable members opposite—some—will speak in this debate, as they have done outside this debate in the public sector, and indicate their support for a retention of a managed tariff policy. That is what is vital to South Australia—not the abandonment of tariffs overnight, not the introduction of high levels of tariffs and protection. That will not support the industry either in the long run. A managed transition is what is so vital.

It is a managed transition which the Industry Commission seeks to pull away from this industry. It is a managed transition which this government is, I suspect, in danger of walking away from. That will do more than anything to undermine the jobs in Australia, in South Australia—in Kingston and, in particular, in Bonython. The employees at General Motors, Lear Corporation, GNB Technologies, Mullins Wheels and Tubalco—which between them support some 7,000 families in my electorate and pour millions of dollars into our economy—are the vital people which this government is in grave danger of ignoring in this policy debate.

We have seen, throughout the history of tariffs in this country, many advocating very high levels of tariffs in production. That is not appropriate. We have seen others like John Olsen, the now Premier of South Australia, when the Fightback policy was before the public, supporting a zero tariff option. That will not do overnight either. What we need is what we have had previously under the Button plan: managed reform, gradual reductions and then, in 2000, a pause while we assess the impact of this change, while we see what our neighbours are doing and while we work out a reasoned, balanced way of moving this industry forward.

Under the managed reform, we have seen massive growth in exports, we have seen productivity gains and we have seen the work force cooperate actively with management through the union movement to ensure that those gains are locked in for the workers, for the companies, for the state and for Australia. That is the kind of reform I want to see continued, and I am sure that the motion before the House seeks to do just that. I commend the motion to honourable members.