Bill Shorten unveils $59m plan to save car industry jobs once Holden ceases production

A FEDERAL Labor Government would spend $59 million on saving manufacturing jobs as Holden, Ford and Toyota ceased production in Australia.

A FEDERAL Labor Government would spend $59 million on saving manufacturing jobs as Holden, Ford and Toyota ceased production in Australia.

Labor Leader Bill Shorten will today promise a $17.5 million funding boost to help South Australian manufacturing businesses transition to new work when the Elizabeth Holden factory closes in 2017.

The funds would include support for SA manufacturers to win work on the construction of naval ships, including the 12 Future Submarines.

About 8000 South Australians are employed directly and indirectly in the car-making industry.

Funds would also be made available to assist Victoria and other states where Australia’s 45,000-strong automotive manufacturing workforce are based.

Mr Shorten said his Manufacturing Transition Boost package was designed to ensure regions including the northern suburbs of Adelaide continued to have local jobs.

“South Australia has suffered more under the Federal Liberal Government than any other state,’’ Mr Shorten said.

Federal Opposition Leader Bill Shorten will announce a $59 million package to help automotive industry workers find jobs after Holden. Picture: Kym Smith

“The Liberals goaded the car industry into closing down and deserting Australia, leaving Adelaide facing high unemployment and social dislocation.

“Labor is committed to maintaining the capabilities of Adelaide’s manufacturing industry — local expertise is too important to be thrown away.”

Under the plan, businesses would be given incentives to diversify into new products and markets and to employ automotive workers who had lost their jobs.

The package included $15 million to expand the SA Government’s automotive supplier diversification program. The program would be extended to 2020 and access opened to non-automotive manufacturers.

Manufacturing businesses in defence, medical technology, food and beverages, construction and other growth sectors would be given assistance to expanded and improve their productivity.

About 50 extra South Australian companies would share in $2.5 million worth of “Business Transformation Vouchers”.

The vouchers could be used to fund research and development, access to training for strategic business development and to buy capital equipment which improves efficiency and boosted capability.

Mr Shorten said the SA component of the Labor funding package would focus on enhancing programs already introduced by Premier Jay Weatherill.

“A Shorten Labor Government is committed to working with the Weatherill Government to support local jobs and boost advanced manufacturing in the state,” he said.

Mr Shorten said the end of local car manufacturing would rip $29 billion from the national economy, or about two per cent of GDP, and could cost up to 200,000 jobs.

About 160 businesses are involved in the car component manufacturing, engineering designing and tooling.

Stemming manufacturing job losses has emerged as a key issue in the federal election campaign and the Labor announcement will come as good news to voters in key marginal South Australian and Victorian seats.

Prime Minister Malcolm Turnbull has pledged to support advanced manufacturing and job creation through Defence projects, trade deals which give Australian businesses easier access to international markets and a strong focus on innovation and making it easier for budding entrepreneurs to get new ideas off the ground.

Mr Turnbull and Mr Shorten were quizzed by voters during their first election campaign debate about the outsourcing of Australian jobs overseas and future employment opportunities for young people.

The announcement of the Labor plan comes ahead of the release on Thursday of official unemployment statistics.

In March, SA had Australia’s weakest labour market, with a 7.2 per cent unemployment rate, or about 63,000 people out of work. Economists expect the national jobless rate to be steady at around 5.8 per cent.