A NEW CAR PLAN FOR A GREENER FUTURE A NEW CAR PLAN FOR A GREENER FUTURE © Commonwealth of Australia 2008 ISBN 978-0-642-72554-7 This work is copyright. Apart from any use as permitted under the Copyright Act 1968 , no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney General’s Department, Robert Garran Ofces, National Circuit, Canberra ACT 2600 or posted at http://www.ag.gov.au/cca PRIME MINISTER’S FOREWORD 1 MINISTER’S FOREWORD 3 EXECUTIVE SUMMARY 5 WHY A NEW CAR PLAN? 7 THE DETAILS 9 THE GOVERNMENT’S RESPONSE TO THE REVIEW OF 13 AUSTRALIA’S AUTOMOTIVE INDUSTRY CONTENTS | 1 Our rst car took to the road as early as 1897, when David Shearer demonstrated his steam-driven horseless carriage in South Australia. Yet it would be two generations before the rst 48-215 Holden came off the line in 1948, and motor vehicle production began in earnest. That’s a measure of how hard it is to establish an automotive industry, and a reminder of why Australian governments have dedicated themselves to ensuring that we remain a car-making country. In the past, governments have tried to protect the industry with tariffs and quotas. The Button Plan of the 1980s showed there was a better way. If we want the Australian car industry to prosper, we have to make it stronger — more innovative, more productive, more competitive and more export-focused. That’s what A New Car Plan for a Greener Future aims to do. Australia is one of only about fteen nations in the world today that can create a car from scratch — taking it from the drawing board to the showroom oor. And because the modern car integrates just about every advanced technology we use, from microchips to composite materials, being able to build cars means being able to build lots of other things as well. That’s why the automotive sector is a cornerstone of Australian manufacturing. A New Car Plan for a Greener Future is a plan for reinventing the Australian car industry. It is about preparing the industry for a low-carbon future and making it indispensable to global markets and supply chains. It will ensure that car-making goes on contributing to Australia’s prosperity. PRIME MINISTER’S FOREWORD The Hon Kevin Rudd MP Prime Minister of Australia The automotive sector is a cornerstone of Australian manufacturing. 2 | A NEW CAR PLAN FOR A GREENER FUTURE | 3 2 | A NEW CAR PLAN FOR A GREENER FUTURE | 3 A New Car Plan for a Greener Future is the most comprehensive plan ever devised for this vital sector of our economy. It brings every player in the industry together in a partnership that will reshape the industry and deliver enduring benets to all Australians. This is a plan to reinvent the automotive industry. It gives the industry the certainty it needs to invest in the vehicle technologies of tomorrow. It will reward research and development, innovation and productivity. It will restore condence and promote new investment. The Green Car Innovation Fund will receive a substantial boost in funding to encourage the development and production of low-emission, fuel-efcient vehicles and components. The Automotive Transformation Scheme will also focus on greening the industry, with participants required to demonstrate a commitment to environmental sustainability. Our aim is to bring about an historic transformation that will prepare the industry for the future. We also aim to address the urgent challenges facing the industry today. That’s why we are encouraging consolidation in the supply chain. This will enable us to retain capabilities and jobs in Australia, while ensuring that those workers who are displaced get the support they need to nd new jobs. On behalf of the government, I would like to thank Steve Bracks for generously agreeing to conduct the review which has led to this policy statement. Thanks also to the experts who supported him – Peter Upton, Nixon Apple, Dr Elizabeth Webster and Tim Harcourt – and to the many individuals and organisations who contributed to the review process. A New Car Plan for a Greener Future will provide $6.2 billion in assistance over thirteen years. It will revitalise an industry that is critical to the Australian economy and the Australian community. It demonstrates the government’s commitment to manufacturing, its commitment to innovation, and its commitment to providing Australia with high-quality, high-skill, high-wage jobs. MINISTER’S FOREWORD Senator The Hon Kim Carr Minister for Innovation, Industry, Science and Research Our aim is to bring about an historic transformation that will prepare the industry for the future. 4 | A NEW CAR PLAN FOR A GREENER FUTURE | 5 [...]... R&D, taxes, wages and salaries We can expect even better returns from A New Car Plan for a Greener Future An investment in the Australian car industry is an investment in Australian economic capacity, innovation and jobs The Australian Government believes it is an investment worth making 8 | A NEW CAR PLAN FOR A GREENER FUTURE the details 1 Automotive Transformation Scheme (ATS) We cannot secure the future. .. the future of manufacturing in Australia Manufacturing employs a million Australians and accounts for a tenth of our GDP We can’t have a balanced economy without it – and we can’t have a just society without it either Manufacturing is the mainstay of families and the lifeblood of communities around the country Car- making drives demand, sustains capabilities and stimulates innovation across the manufacturing... industry has a future and are certain of the Australian Government’s commitment A New Car Plan for a Greener Future is a plan to provide that certainty It has a thirteen-year horizon, with a high level of support at the beginning to accelerate reform and renewal, eventually tapering down to zero The best way to maximise investment is by simultaneously inspiring confidence and encouraging self-reliance That’s... Team Australia Automotive initiative should be through a contestable grant process, and present a united Australian automotive capability (encompassing state government supply chain and export promotion programs) to international markets 20 | A NEW CAR PLAN FOR A GREENER FUTURE A well-known and respected industry figure will be appointed to champion the industry A new $6.3 million Automotive Market Access... will go ahead as planned in 2010 Matching the world’s best on tariffs will prepare the Australian industry for competition in an increasingly open global market A New Car Plan for a Greener Future is designed to make our automotive industry greener and more internationally competitive Participants in the Automotive Transformation Scheme will be required to demonstrate that they are aiming for better... Mandatory and discretionary criteria should be designed Agreed to assess proposals against a mix of quantitative and qualitative aspects Commercial application of technology should be a mandatory criterion 27 All organisations and individuals should be eligible, including participants in the automotive supply chain, research organisations, and international firms where eligible activities are performed... them, and new and better ways of marketing them to the world The plan will give researchers, technologists, engineers and designers new opportunities to help create the low-carbon transport options consumers increasingly want and our planet so urgently needs A New Car Plan for a Greener Future involves a substantial commitment from the Australian Government and the Australian people, but it is also... standards should also be consistent with Australia’s international obligations and not impact on mutual recognition matters (and hence risk market access restrictions for Australian-made vehicles) Agreed OTHER MATTERS 39 Australian governments should continue to include Australian-made vehicles as a major part of their purchasing policies, and should reinforce this through a threshold agreement at... international supply chains This is already happening Australia exported $5.6 billion worth of vehicles and vehicle components in 2007–08 That’s more than we earned from our exports of wool, wheat or beef Australianmade vehicles are being driven on every continent except Antarctica, and Australian ideas, technologies and components can be found in vehicles worldwide A New Car Plan for a Greener Future. .. 2020–21, of which $3 billion is already committed, and $3.2 billion is net new funding The government expects this assistance to stimulate industry investment of at least $16 billion in new capacity and new technologies – not to mention billions of dollars in wages and salaries for tens of thousands of workers 6 | A NEW CAR PLAN FOR A GREENER FUTURE Why a new car plan? Making the automotive industry stronger . a cornerstone of Australian manufacturing. 2 | A NEW CAR PLAN FOR A GREENER FUTURE | 3 2 | A NEW CAR PLAN FOR A GREENER FUTURE | 3 A New Car Plan for. 4 | A NEW CAR PLAN FOR A GREENER FUTURE | 5 ExECUTIvE SUMMARy A New Car Plan for a Greener Future is the Australian Government’s plan to give our automotive