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Monday, 26 March 2001
Page: 25691

Mr Latham asked the Minister representing the Minister for Industry, Science and Resources, upon notice, on 6 February 2001:

(1) What financial contribution is the Government making to the establishment of the new Holden V6 engine plant in Melbourne from (a) the Automotive Competitiveness and Investment Scheme (ACIS), (b) research and development funding, (c) import duty concessions and (d) other budget programs.

(2) Were these commitments determined in consultation with the Victorian Government; if so, what are the details of the State financial contribution to the project.

(3) What is the total ACIS funding for which Holden is expected to be eligible over the next five years.

(4) Is public funding for the new engine plant the equivalent of $295,000 per job created, as reported in the media.

(5) Given the extent of the public funding contribution, will the Government (a) withdraw its contribution and directly grant each of the engine plant workers $295,000 or (b) buy-out the entire plant and bring it into full public ownership and control.

Mr Reith (Minister for Defence) —The Minister for Industry, Science and Resources has provided the following answer to the honourable member's question:

(1)(a) to (c) At this stage no assistance has been provided from any of the schemes, however, any financial benefit that Holden might claim under any scheme will depend on the nature and amount of asctivity made by the company.

(d) Under the Strategic Investment Incentives Program $12.5 million has been provided for Automotive Training and Technology Development.

(2) State financial assistance to Holden is a matter for the Victorian Government.

(3) ACIS is a performance-based incentive scheme. The assistance paid is dependent on the actual level of eligible investment and production by a motor vehicle producer. The actual payout is also subject to modulation to fit within the $2 billion fiscal cap for ACIS.

(4) No

(5)(a) No

(b) No.