THE HOUSE OF REPRESENTATIVES has passed the Rudd Government’s proposed Automotive Transformation Scheme Bill, which aims to inject an estimated $3.4 billion into the local car industry.
The Bill aims to stimulate innovation and investment in Australian new car design, with a particular emphasis on environmentally-friendly technology.
The money is intended to be spent between 2011 and 2020, and will be targeted towards projects with a ‘green’ objective.
The Automotive Transformation Scheme will also replace the Howard Government’s Automotive Competitiveness and Investment Scheme (ACIS).
“Stimulating additional R&D, a major contributor to innovation, will improve productivity and build competitive advantage,” Small Business Minister Craig Emerson said in a statement earlier this year.
“The new scheme also requires participants to demonstrate a commitment to improving environmental outcomes.
“This will lead to the development of vehicles with lower fuel consumption and lower greenhouse gas emissions.”
Although the House of Representatives did not oppose the draft laws, the Federal Opposition called for a number of amendments. The Opposition claims that greater transparency in annual spending reports is needed to ensure the assistance money is not wasted.
The Senate will now examine the Bill and consider the proposed amendments, however FCAI Chief Executive Andrew McKellar has urged Opposition parties not to obstruct the legislation.
“Now is not the time for political opportunism,” Mr McKellar said.
“The legislation will provide the industry with the confidence to invest in new technologies and support the development of lower emission and greener vehicles in Australia.
“Any delay will cause unnecessary uncertainty and concern.”
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As taxpayers we should see how the money is spent, with obvious concessions for commercial confidentiality. But I’m glad the Opposition is making sure this Bill doesn’t just become another multi-billion dollar blackhole to prop up an industry that appears to many as unsustainable. I believe its an industry worth saving, but without transparency into how this money is allocated and why, the industry will have no stimulus to become more competitive and more sustainable by themselves.
This is a good start, but the government should be putting in legislation that stipulates that car manufacturers must meet a specific mpg rating. Efficiency of engines should also be considered as there is no way the Australia or the world is going to transition to solar or hydrogen cars tomorrow! So an emphasis on fuel efficiency should be a key part as well!
I like the idea of Transparency ’cause you won’t get headlines like the other week of the “secret” input into GM-H. I’m not against support when needed, but the Government Employers and funders (the people) have the right to know.
Also (as much as this is supposedly a bad thing), Australia should have a protectionist policy in for Government departments (the largest purchaser of all types of goods). Free trade for the rest of the country is great. However instead of just giving loans to companies to make stuff that they can’t sell, make the loan a purchase contract for goods to you specification…. Production remains and you get something for your money. Simple really. Pity Australian Governments are amongst the few that can’t grasp that concept.
3.4Bn would have been better spent on fixing our already badly deteriorated roads.
Of course its us, the Aus Taxpayers paying for this initiative, so it’d be nice to get a return on our tax dollars, rather than see it being thrown to the automotive manufacturer wolves.