Mr CHAMPION (2:59 PM) —My question is to the Prime Minister. Can the Prime Minister update the House on developments at General Motors Holden and the importance of automotive policy to the Australian economy?

Mr RUDD (Prime Minister) —I thank the honourable member for his question. Again I would commend to those opposite some good news for the Australian economy in the midst of a global economic recession, and it goes to statements today by the CEO of Holden Australia concerning the future of the company in this country. This is important for Australia. It is important for manufacturing in Australia. Today I met with the Holden CEO, Mark Reuss, and he had already had earlier discussions with the industry minister, Senator Carr. The CEO of Holden has advised that Holden’s operations will be unchanged by announcements in the United States by General Motors. Specifically, he has advised that Holden will be part of the new GM. He has advised that Holden will not be included in the US filing under chapter 11. He advised that there will be no direct impact on local design, engineering and manufacturing operations. He advised that technology improvements to the Commodore and the introduction of the second car line remain on track. He advised there will be no changes to Holden employees and supplier payment arrangements and he advised there will be no changes to Holden dealer and warranty arrangements. I would say this is good news for the Australian economy—good news at a time when we have seen such an assault on the automobile industry worldwide as a direct product of the global economic recession.

We cannot underestimate the significance of developments in the United States in the auto industry. General Motors’ decision to file for chapter 11 bankruptcy is a powerful symbol of the challenges now facing the global economy. This is the single largest industrial bankruptcy in US history. The actions of the Obama administration to support the industry are unprecedented. But Holden here in Australia has not been caught up in these US developments. Holden is considered an A-list asset in the General Motors group. It is in contrast to speculation in Australia that this would directly wipe away Australian motor vehicle manufacturing, particularly through General Motors Holden. Holden has forged its path through difficult circumstances, and the company’s leadership and its employees have worked together to achieve this. They have also done so in direct partnership with the Australian government.

The Australian government last year, in the midst of great criticism on the part of those opposite, launched a $6.2 billion new Green Car Plan providing certainty for the sector right out for 2020. This was government acting ahead of the curve. This was government acting at a time—

Opposition members interjecting—

Mr RUDD —I take it those opposite are still opposed to this plan. South Australian members? Member for Sturt? Is he opposed to this plan? He remains silent. Can I say to all South Australia members that I would suggest they consider long and hard whether they support this vital piece of industry policy and industry plan because it goes directly to jobs in South Australia and jobs for the auto sector more broadly across the country.

As well, in December last year, I was pleased to visit Holden’s Elizabeth plant in Adelaide to announce a $149 million investment from the Commonwealth government’s innovation fund for the green car. This will be used for the production of a new four-cylinder small car here in Australia. Holden produces 100,000 cars a year, exports cars to all continents and employs over 6,000 Australians. Those 6,000 jobs are important jobs. They are like the jobs in the retail sector that the government is supporting by other policy means. They are like the jobs in the housing and construction sector that the government is supporting by other policy means. It is something of which this government is proud. We have been out there in partnership with industry. Australia is one of only 15 countries in the world that can produce a car from scratch. That is why we have been in there, with our sleeves rolled up, working with industry when it counted to provide confidence for the industry at a time of unprecedented downturn. All those opposite can do is scoff, be negative, talk the economy down, talk the industry down, talk manufacturing down. I would suggest those opposite should change their tone.

In conclusion, let me quote Mark Reuss, the CEO and Chairman of GM Holden, who said today, in an extract from his press conference with the Senator Carr:

He went on to say:

Good news again. Those opposite bury themselves in their papers. He goes on to say the following:

Opposition members interjecting—

Mr RUDD —Those opposite are still objecting to this positive news for the Australian economy, always talking the economy down. He says about General Motors Holden:

Had the government not taken the decision last year to put forward a $6.2 billion new car plan for Australia, where GM was an active partner with the government in that plan, it is quite plain that the industry’s future would be considerably uncertain. We have this great statement from the CEO of Holden Australia today. It is something of which the government is proud and I would ask all members of the House to express their support for the future of this auto industry in Australia.