E & O E – PROOF ONLY
Subjects: Automotive industry review, Green cars, Peter McGauran's resignation.
JON FAINE: With me in the studio is Senator Kim Carr. He's the Minister for Innovation, Industry, Science and Research in the Rudd Government, and in Melbourne talking about the future of our automotive industry, which is one of the hospital passes that he's received, as the Rudd Government was sworn into office. Senator Kim Carr, good morning to you.
KIM CARR: Good morning, Jon.
JON FAINE: I understand you've been in negotiations with Toyota and others about introducing new technology into the Australian automotive industry, how realistically can we expect to be making hybrid cars in this state?
KIM CARR: Well we're talking to all the companies, both the main manufacturers and the component manufacturers, about the possibilities of transforming the Australian industry, I just don't want a green car, I want a green industry, and we're in the process of discussing with the companies the opportunities that are likely to come forward, and I'm confident that we will see significant change in the Australian industry over the next little while.
JON FAINE: In what direction will that change occur? Ford have been, for instance, criticised for producing a big, thirsty four-wheel drive, when companies elsewhere in the world are looking at hybrids and lightweight turbo diesels.
KIM CARR: Well, Jon, the changes will come in many directions. We're not trying to mandate the technologies that are used, we want to talk to companies about the opportunities that they see emerging from the different styles of technology that are available, and it's not just fuel systems, it's the whole drive train, it's whether or not we want lighter cars, whether or not we want cars that do different things from what they are, we want new design, aerodynamic design.
There are a range of opportunities that are presenting themselves, and I'm very optimistic that this is a prosperous industry, if the right decisions are made, and they need to be started to be made now. There are very long lead times on model development, they're $1 billion for each of those models, they are difficult to turn over quickly, and there are enormous challenges facing the industry, world wide, world wide.
But you know, you can criticise Ford for the Territory, it's a highly innovative car, a very good car. One of the growth sectors of the Australian market is SUVs, the same category that they are using, that they are seeking to develop a market.
JON FAINE: People want them, but more and more of them are being powered by diesel motors.
KIM CARR: And that's an issue that's being considered now, and it's clearly one of the options that are available to us. It may well be others, hydrogen, gas, there's a number of options that are presenting themselves to the industry. We're not in the business of dictating the particular forms of technology that'll be used, we want to work in partnership with the industry, to see that the industry is transformed.
JON FAINE: When you're not your big white car with a driver, what do you drive?
KIM CARR: Well, I drive a Territory, and I find it a great car. What do you drive, Jon? I understand it's a Jag. I understand you've got a very large collection of cars, what's more.
JON FAINE: I have a number of cars, and all but one of them are old.
KIM CARR: Yes, but they are very, very costly on petrol, and the Jag is not a cheap one to drive.
JON FAINE: No, it's not, but it's a toy, it's not used on a daily basis.
KIM CARR: Well, I think the Territory is a very good vehicle, a very good vehicle.
JON FAINE: If you could get a turbo diesel Territory, would you?
KIM CARR: Well, of course we would, and the truth of the matter is, we are looking to transform the industry, the industry is facing
acute challenges, it's incredibly important to this country. Two-and-a-half percent of state GDP in South Australia, two percent of Victorian GDP, $24 billion worth of industry every year, it is a major driver of technological change in this economy, a major source of exports, it is strategically vital for a whole range of other industries, ICT, steel, composite materials, it is a major driver for R&D, in terms of design and other features, that lead us to a world stage.
This is a highly internationalised industry, we want to be part of it, we are one of the 15 countries in the world, that can go from go, from design, right through to production. It is every Government in the world that is interested in this, and up to 100 of them, understands the importance of this industry to their local economies.
JON FAINE: All right, well just finally, should the Government take the lead, by shifting its own fleet acquisition policies towards some of these new technologies in order to kick start the conversion of the Australian industry?
KIM CARR: And that's what we're doing, we are moving over time, to adjust the purchasing policies of the Commonwealth fleet, we will be moving towards the purchase of green cars, we are talking ...
JON FAINE: So you're saying to the local industry, if you build them, we'll buy them?
KIM CARR: We are saying to the industry that not only will we need to improve fuel efficiency, we will need to improve the environmental impact of motor cars, we will need to have a market for them, and fleet sales is one of the major sources of sales for vehicles in this country, 60 per cent of the Australian production is sold into fleets. We have a major role in the future to ensure that we have the very best technologies available, and that we are able to assist the industry adjust to the enormous challenges that it's facing.
JON FAINE: Thirteen minutes to 10. Last question before I get back to Coles, and we talk about bicycle helmets and other things, Senator Kim Carr, your fondness for doing the numbers in the back rooms of the Labor Party is of great notoriety, can you take ...
KIM CARR: To you, Jon, to you.
JON FAINE: To me. Can you take Gippsland off in a by-election, after Peter McGauran's resignation, can you take Gippsland off the Conservatives?
KIM CARR: Well Jon, it's a very, very difficult call, we're some five points off the pace. The last election result, where our candidate, Jane Rowe did very well, is somewhat below the state average, it is obviously difficult. What we're saying to Dr Nelson is it's time to show up our leadership, and get all of these by-elections that are being proposed and speculated on, out of the way, on the one day, right across Australia. We could probably save the taxpayers $1 million by doing this, and so we're looking forward to an opportunity to re-engage with the Australian people, to discuss the plans for the future that we hold, and the opportunities there are to rebuild this country, we can face the challenges with optimism, and that's why we're actually looking forward to this contest.
JON FAINE: It's good to see a Minister in a Government with a beard, it's been a long time since we've had one. Congratulations, I haven't seen you since the election, but thanks for dropping in today.
KIM CARR: Thanks very much, Jon.
JON FAINE: Senator Kim Carr, now the Minister for Innovation, Industry, Science and Research, in the Rudd Government.
ENDS