$6.2 BILLION NEW CAR PLAN MOVING FORWARD

Senator Kim Carr, Minister for Innovation, Industry, Science and Research, today announced three key steps in implementing the Rudd Government's $6.2 billion New Car Plan for a Greener Future to transform Australia's automotive industry.

"These three steps are all significant because they give effect to some of the most critical aspects of the plan," Senator Carr said.

The three key steps are:

• The release of a framework paper outlining the proposed operation of the Government's $1.3 billion Green Car Innovation Fund. It invites feedback on the Green Car Innovation Fund's structure and implementation and is an opportunity for stakeholders to have their say in the delivery of a key element of the New Car Plan.

• The release of Ministerial guidelines for the Automotive Industry Structural Adjustment Program (AISAP). The program will support automotive supply chain companies that want to consolidate through mergers and acquisitions. It will create a stronger supply base for the automotive industry by assisting the industry to retain core capabilities and achieve greater scale.

• The appointment of members of the Automotive Industry Innovation Council, which will be chaired by Dr David Charles, a former Secretary of the Department of Industry, Technology and Commerce.

Green Car Innovation Fund – Framework Paper

"The commercialisation of new technologies in Australia is a key feature of the Green Car Innovation Fund, which will focus on reducing vehicle fuel consumption and greenhouse gas emissions," Senator Carr said.

"The framework paper outlines the proposed key elements of the fund, such as: the size of grants available, who is eligible to apply, when applications can be lodged, and how applications will be assessed.  Stakeholder feedback will inform development of implementation guidelines for the Green Car Innovation Fund."

Input to the Green Car Innovation Fund guidelines development can be made by:

• attendance at public consultations at key centres around Australia in early February 2009.  The framework paper is available on the Green Car Innovation Fund webpage, and details of the consultations, including timing and venue, will be available shortly; and

• written comments on issues raised in the framework paper or on any other aspect of the fund can be submitted via email to: The Manager, Green Car Innovation Fund Taskforce, GCIF@innovation.gov.au

Automotive Industry Structural Adjustment Program – Guidelines

"The Automotive Industry Structural Adjustment Program is about the Rudd Government working with the automotive industry to strengthen the components sector's capability to improve supply chain integration. We cannot have a viable automotive industry without a strong components sector," Senator Carr said.

Firms will be able to apply for assistance with eligible merger and acquisition costs from 1 January 2009. Consolidation will help make companies more financially viable and competitive and will need to have demonstrable economic and strategic benefits to the automotive industry to receive support. 

Firms are advised to refer to the program guidelines before applying. A copy of the guidelines is available at www.innovation.gov.au/AISAP and application forms will be available at the same site shortly.

Automotive Industry Innovation Council – Members

Senator Carr said the Automotive Industry Innovation Council will help to inform and coordinate the implementation of the New Car Plan for a Greener Future, which is designed to reshape Australia's automotive industry and improve its competitiveness.

"Dr Charles' expertise in innovation and public policy, his experience as a former Department Secretary and his interests in industry development, research and development, and international trade and investment will bring strong leadership, drive and knowledge to the council," Senator Carr said.

"This council represents all the key automotive industry stakeholders, including representatives of Commonwealth and State Government ministers, the three car producers, component makers, unions and researchers.

"The council will be a vehicle for good communication between industry and government, develop and disseminate new ideas, and drive continuous improvement and renewal.

"While the automotive industry in Australia and around the world is facing significant challenges, I am confident that the New Car Plan for a Greener Future will help our industry to meet these challenges. The plan and the initiatives I have announced today will facilitate a transition to a more sustainable, competitive industry and provide economic, social and environmental benefits for the country."

A biography of Dr Charles and a full list of Automotive Industry Innovation Council members is below.

Media contact:  Patrick Pantano, Minister's Office, 0417 181 936
                         Steve Payne, Department, 02 6213 7500
 

BIOGRAPHY – DR DAVID CHARLES

Dr David Charles is Senior Associate in the Economics group at Deloitte.

He was previously the Chairman of Insight Economics, a specialist public policy consulting firm.

He was a director of the Allen Consulting Group for 13 years from 1993.  From 1985 to 1990, he was the Secretary of the Commonwealth Department of Industry, Technology and Commerce and served on the Austrade Board.  During the late 1970s and early 1980s, he held senior positions in other Departments including Employment and Industrial Relations, and Prime Minister and Cabinet.

His interests are in industry development, the emergence of the knowledge economy, research and development, innovation, and international trade and investment.  He has led studies on the automotive, ICT, pharmaceuticals, shipbuilding, scientific equipment and food industries.  He has a PhD in Economics from London University.

MEMBERS OF THE AUTOMOTIVE INDUSTRY INNOVATION COUNCIL

Dr David Charles (Chair) 

Mark Reuss Chairman and Managing Director, GM Holden; and President, Federal Chamber of Automotive Industries

Max Yasuda President and Chief Executive Officer, Toyota Australia

Marin Burela President and Chief Executive Officer, Ford Australia

Zoran Angelkovski Chief Executive Officer, Continental Pty Ltd; and President Federation of Automotive Products Manufacturers

Bruce Griffiths Executive Chairman, Futuris Automotive Group Limited

David Robinson Chairman and President, Robert Bosch (Australia) Pty Ltd

Mark Albert Managing Director, MtM Pty Ltd

Juergen Bracht Managing Director, ZF Lemforder Australia

Roger Lassen Aftermarket Sales and Marketing Director, Tenneco Australia Pty Ltd

Ian Jones Chairman, Federation of Vehicle Industry Unions (FVIU)

David Oliver National Secretary, Australian Manufacturing Workers Union (AMWU)

Paul Howes National Secretary, Australian Workers Union (AWU)

Charlie Donnelly National Secretary National Union of Workers (NUW)

Barry Comben Independent Chairman, Cooperative Research Centre for Advanced Automotive Technology (AutoCRC).

Dr Megan Clark Chief Executive, CSIRO

Prof Caroline McMillen Deputy Vice Chancellor and Vice President, Research and Innovation, University of South Australia

State Representatives

Representative of the Victorian Minister for Industry and Trade

Representative of the South Australian Minister for Industry and Trade

Commonwealth Representatives

Steve Payne Head of Manufacturing Division, Department of Innovation, Industry, Science and Research

Representative of the Australian Trade Commission (Austrade)


Note: Additional members may be appointed.