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Mr Dawkins: why have car industry sales dropped?



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STEWART m c a rth u r

H 't

FEDERAL MEMBER FOR CORANGAMITE

ACTING SH A D O W M INISTER FOR IN D U S T R Y A N D COM M ERCE

MR DAWKINS: WHY HAVE CAR INDUSTRY SALES D RO PPED ?

Rather than attempting to make political capital from one small aspect of the Coalition's integrated Fightback! package, the Treasurer, Mr Dawkins, should look to his own backyard and consider why the car industry, like many others, is experiencing declining sales, Acting Shadow Minister for Industry and Commerce, Stewart McArthur, said today.

"New car and truck sales are expected to decline from 627,000 units in 1989/90 to 520,000 in the year to June 30."

"Industry forecaster Martec suggest that sales may actually even dip slightly below this disastrous figure."

"A sales reduction of 20 per cent for any industry in two years is bad news."

"Consumers and fleet car buyers are not showing confidence in the Keating Government's record of economic management."

M r McArthur said that depressed demand threatened to further increase the average age of cars on the road.

"If the 10 per cent cut in May registrations was to continue, the typical Australian car, by the year 2000 would be over 12 years old, rather than the 1979 figure of 6.7 and today's age of 9.8 years. If government and company cars are excluded, the picture is even worse."

Mr McArthur said that the lack of certainty in every area of decision making by the Keating Government was resulting in a 'merry-go-round' of static or lower investment levels chasing lower sales.

"A major reason why only one fifth of respondents to the May 1992 Business Council of Australia survey expect to have increased their levels of Australian investment through 1991/92 is that the Government's direction is coming from the desk of one man."

"The Prime Minister's opportunistic policy making, whether during % , by-election or on nationally televised weekly programs, does not result in the 'ring of confidence' that consumers and business need to plan their future affairs."

25 June 1992 Contact: Edmund Carew 06.277.4848

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