Mr McARTHUR (6:41 PM) —I rise tonight to speak on the ACIS Administration Amendment Bill 2002. I have just been advised that I am somewhat limited in the time I have, unlike my colleague. Firstly, I refute the allegations and suggestions of the member for Corio. I notice he is not in the chamber. I have driven a Falcon ute for 20 years of my life—my misspent youth. For the member for Dunkley and the member for Batman, I just put that on the record. I have been a great supporter of the Ford Motor Co. both now and previously.

The member for Corio goes on with longwinded speeches. I want to put on the record that the member for Corio was the adviser to Senator Button, he was part of the Button plan, which I commend and say that it did a good job. It changed the automobile industry. The member for Corio did move up. He started as a potato grower out there at Alvie and then he made a bit of progress to Monash University where he became a bit of a left-winger and then gradually he joined Senator Button where he learnt a thing or two. Now he has gone back to be the member for Corio and he has learnt nothing. He does not understand the car industry and he wrongly interprets the member for Corangamite. I just want to get it on the record that he sold out on his good friend John Button, a strong Cats supporter, and here is the member for Corio misrepresenting my position.

On a more serious note, I put on the record my genuine sadness at the passing of Jack Ferguson, the father of Laurie Ferguson, the member for Reid, and of the member for Batman. In my earlier days in reading about politics, Jack Ferguson was always a stalwart of the Labor Party in New South Wales. I use to read about his very great contribution to the Labor Party, and his contribution to the solidarity and the good sense of that party. Coming from the left wing it would have been rather a lonely life in New South Wales. Also with a Catholic background it would have been somewhat lonely in that faction ridden party in New South Wales. I also recognise his contribution as a brickie. I have some sympathy with his great work, coming from the shearing industry. I note that he passed away because of illness he received on the job. I put that on the record in a most genuine way.

A number of speakers have spoken about the package and I will have to be brief. The ACIS program, as people have said, is an assistance part of the package in the current tariff debate, where the current tariff of 15 per cent will remain at that level until 1 January 2005 when it will fall to 10 per cent. There will be a five per cent tariff on four-wheel drives and light commercial vehicles. That is an interesting position. We now have an emerging four-wheel drive industry in Australia with all the four manufacturers developing prototypes and that is an interesting tariff position that maybe needs to be reviewed. I support very strongly the retention of a specific $12,000 tariff on imported second-hand used cars, and I have argued that case for the manufacturers because Australian manufacturers have to have quality standards—they meet very high industry standards here in Australia—and the importation of those second hand cars was most unhelpful.

As other members have alluded to, the ACIS program provides $2.8 billion in two pools over five years: one pool of $2 billion for the life of the scheme and another pool of $840 million. The bill makes changes to some of the detail in terms of utilities, and there are a couple of unintended consequences. The bill includes pick-ups, panel vans and utilities. However, it gives me, along with the member for Dunkley, an opportunity very quickly to review aspects of the industry. The ACIS program would have attracted investment. All those major manufacturers have indicated to us that they invested in Australia because of the good climate. One of the attractions was the ACIS program. Whilst there was a declining tariff program, there was that footloose investment capital that the major parent companies were prepared to invest in Australia. The result is that we are looking at almost the best outcome in sales—over 800,000 units being sold in the current year, and that is a record for the industry. That is worth putting on the record. The $5 billion of exports is a remarkable achievement by the four manufacturing companies. They have been able to move away from domestic production, where all the tariff argument and debate took place, and have moved to exports. In particular, I commend Toyota and GMH. Mitsubishi is trying in the export market. Obviously, Ford's export opportunities are rather confined. I mention in passing that the tariff debate will get some more airplay at a later stage.

I commend the minister on looking at the options. As the member for Corio says, I have been an advocate of lower tariffs. I have argued that case in the very difficult area of Geelong, where people had the misguided view that the higher tariffs would keep their jobs and keep the industry in the cities of Geelong and Broadmeadows. Mr Deputy Speaker Jenkins, you operate in that part of the world. It was always my view that more competitive, better quality automotive manufacturing would retain those industries here in Australia. I have been advocating the lowering of tariffs. Again, the Button plan started the ball rolling. Moving from 57 per cent down to 15 or 10 per cent is a very good step in the right direction. When we get to 10 per cent or five per cent, I will advocate that we lower it and change the attitude so that the automobile industry looks at an export culture and at being competitive and profitable.

As my colleague the member for Dunkley said, we visited Toyota, the Ford plant and GMH. In the short time available I will make a couple of remarks. The Toyota plant is remarkable for its quality, quality control, emphasis on industrial relations and the ability to produce cars and parts using the just-in-time technique. The ability of that plant to produce one motorcar of a very high quality every two minutes is to be marvelled at. As for our visit to the Ford company, again I commend Geoff Polites, who talked to the group of members of parliament. He became very close to his work force. I particularly commend senior management in the Ford company on the way in which they have encouraged genuine participation by the work force and an emphasis on quality in that production plant. Likewise, at GMH, they have won export contracts for their engines against tough international competition. Our visits to those plants indicated on the ground the changing culture and the ability of the work force and management to cooperate in the just-in-time technique so that the production of quality motorcars in Australia is a reality in 2002—very much against the prognostications of people who fought me in the tariff debate some five or six years ago.

Finally, I will make a couple of comments on the assistance review by the Productivity Commission. They raise a couple of matters in their preliminary findings.

Mr Martin Ferguson —Mr Deputy Speaker, I seek to intervene.

The DEPUTY SPEAKER (Mr Jenkins)—Is the honourable member for Corangamite willing to allow an intervention?

Mr McARTHUR —I am happy to allow an intervention.

Mr Martin Ferguson —I have been listening with some interest to the member for Corangamite's view on tariffs. What is his attitude to the introduction of a new retrospective tax in the form of a tariff on the import of ethanol? Has he discussed with the manufacturers the potential impact of ethanol petrol on the warranties of existing motor vehicles?

Mr McARTHUR —That is an issue for further debate, as the member for Batman would know. He has used that as a divergence when I and others have been under considerable pressure to terminate the debate. As I was saying, the Productivity Commission made this comment in their preliminary findings:

I conclude my remarks by saying that the ACIS program is good. It provides considerable taxpayer assistance but in the long run the automotive industry should support themselves, be internationally competitive and stand on their own two feet, which I am quite confident they will.