Australia’s auto and component industry is in need of a new plan for the next decade if the industry is to survive and thrive.

In its submission to the Federal Government’s Auto Review Panel, headed by former Victorian Premier Steve Bracks, the AMWU argues that the current auto industry plan, developed in 2002, has become ineffective.

AMWU National Secretary Dave Oliver said that the astronomical increase in the price of oil, the appreciation of the Australian dollar and climate change all have significant implication for jobs and investment in the auto industry.

“Climate change has become a reality. Governments, companies and individuals are all coming to terms with the real need to reduce greenhouse gases. They are questioning the type of cars they buy and looking at alternatives.”

The AMWU also points to Australia’s three Free Trade Agreements which have had a particularly negative impact on the auto industry.

“The greatest damage has been done by the failure of those agreements to remove non-tariff barriers in the nations with which we have signed the agreements.”

The union argues for more investment in plant and equipment, research and development, new emission reduction technologies, and skills formation.

“These components are the lifeblood of the industry and we need to encourage more investment to keep Australian’s auto industry internationally competitive and integrated into the global industry.

“More investment will also improve the industry’s capacity to provide substantial benefits to the Australian economy,” said Mr Oliver.

The union’s proposal for a new plan is built around four pillars:

1.    Core industry support

 Tariffs should remain at 10% so that additional funds are available to restore the value of the Automotive Competitiveness and Investment Scheme.

2.    An environment strategy

A strategy is needed for a more environmentally sustainable automotive industry. The Green Car innovation Fund should be $1 billion over the decade of the new plan.

3.    Helping workers

The impact on workers and their communities must be addressed through a commitment from Government and car manufacturers to provide a restructuring process and a guarantee that all employee entitlements are paid in full in the event of plant closure.

4.    Supporting mechanisms

Initiatives are needed to help the industry attract and retain trades, technical and professional engineering employees. Support is also needed for new manufacturing activities in regions where industry in restructuring and an automotive industry and innovation council should be established.

Mr Oliver said that the union has delivered its written submission to the Review and will make a further presentation in July.