Senator Nick Xenophon leading charge to stop Government cuts to the Automotive Transformation Scheme

ALMOST $1 billion in car industry cash could be saved by the motley new Senate crossbench. TAKE OUR POLL

ALMOST $1 billion in car industry cash could be saved by the motley new Senate crossbench.

South Australian Senator Nick Xenophon is leading the charge to stop the Government’s cuts to the Automotive Transformation Scheme. He wants the $900 million cuts blocked in the Senate to save tens of thousands of jobs in car component manufacturing.

Family First Senator Bob Day said he would be willing to see the funding extended, Democratic Labour Party John Madigan will vote with Senator Xenophon, and the crucial voting bloc of Australian Motoring Enthusiast Party Senator Ricky Muir and the three Palmer United Party Senators could also help stymie the Government’s plans.

Senator Xenophon said he would have a meeting with Prime Minister Tony Abbott next week to discuss the ATS and shipbuilding in SA. He said he wanted all the ATS funding retained and the scheme changed to help all the component manufacturers transition to other industries such as renewable resources and premium and niche markets.

“Without help, we’ll be burning through 33,000 jobs in the components sector, and tens of thousands of jobs more due to the multiplier effect,” he said.

“We need to have at least the same amount of money. This is do or die for the auto sector. I’ve been frantically working with crossbenchers. I think we’ll get there but we need to go to the wire.”

Senator Muir’s spokesman said they would begin detailed briefings on the ATS soon but that they were talking to Senator Xenophon and the ATS was “something the senator is very, very interested in”.

“In principle, the senator is on board with doing all he can to work with Xenophon and Madigan to fight for the workers in the car industry who may be losing jobs,” he said, adding he was “hopeful and confident” the PUP Senators would be on board.

A spokesman for MP Clive Palmer said the matter would be discussed in the partyroom.

Senator Day said that, philosophically, he was opposed to the industry assistance package but that to save the impact on SA families he would like to see it kept for longer.

“It should never have been brought in, in the first place but given it has been implemented and entrenched for so long I’m willing, on behalf of SA families to extend it for another year or so,” he said.

Labor opposes the cuts and the Greens have said they were inclined to oppose the cuts and see funds go towards a transition to cleaner forms of transport.

The Government needs six of the eight crossbenchers’ support to pass legislation.

Prime Minister Tony Abbott said yesterday he was committed to working with the new Senate to get the Government’s legislation through.

Originally published as Senator Nick Xenophon leading charge to stop Government cuts to the Automotive Transformation Scheme