Speech by the Australian Deputy Prime Minister and Minister for Trade, The Hon Tim Fischer to open the Australian Performance Racing Industry Trade Show

Brisbane Convention Centre

Southbank, 24 July 1998

Thank you, John Moyle. Dick Johnson, ladies and gentlemen.

I was very flattered when John asked me to speak at the opening of the Australian Performance Racing Trade Show. I had assumed I was asked because of my high performance as a Minister, or because I was one of the sportier models in the Cabinet line-up. I was therefore slightly taken aback to learn that he wanted me to talk to you wearing my Trade Minister's hat.

But despite that minor misunderstanding, I am very pleased to attend today for two reasons. First, there is the product itself - I, like most Australian males, admit to a fascination for things automotive, and I am itching to have a walk around the exhibition floor.

Second, I was attracted to the "performance racing" aspect of the Trade Show. It serves, I think, to remind us all that the future of Australian industry - and particularly our export industries - depends in no small way on scientific and technological innovation. High-tech industries - smart industries - are so important for Australia's future. The title of the show reminds us also of another important feature of our trade efforts - we need to perform, to be competitive, if we are to win in the global marketplace.

What the Government is doing for the industry

The Government sees the automotive industry, including the performance racing sector of the industry, as a vital part of Australia's manufacturing capacity. The technologies it uses puts Australia at the forefront of world's best practice, and the industry employs almost 50,000 people.

Since 1996 we have been working with industry to develop policies that will see the maintenance of a vital and growing automotive industry in this country.

We have introduced a pause in tariffs for automotive products at 15% from 2000 until the end of 2004, after which they will be reduced to 10%. That decision was aimed at encouraging further reform and increased competitiveness in the industry, but in a manner that gives the industry more certainty as it adjusts to global competition.

This year we have announced the Automotive Competitiveness and Investment Scheme (ACIS), an integrated package of support measures for the automotive industry that will help boost investment and research - and therefore jobs - into the next century. The Scheme, together with our action on tariffs, provides the basis for long-term decision making in the Australian automotive industry and will create a firm platform for its enhanced global competitiveness.

The Government is also developing an Automotive Trade Strategy, worth $20 million over four years, which aims to assist the automotive industry win markets for its products overseas. The Strategy is being guided by the Automotive Trade Council, which I chair with my colleague, Industry Minister John Moore. The Council held its first meeting on 1 July, and endorsed a broad program of work on automotive trade issues.

Our export performance

And I am pleased to say that Australian industry is producing world-class products that serve Australians well and, increasingly, are earning us export dollars too - in 1997, around $2.65 billion of them, an increase of $500 million on the previous year.

Now most of you here would be familiar with the export successes of some of our larger manufacturers - for example, the export of significant numbers of Camrys, Commodores and Veradas to markets in the Middle East, the United States and elsewhere. What you may not know is that many other performance automotive companies are on the export trail as well:

• Castalloy company is exporting alloy wheels to the Harley Davidson Company in the United States;
  
• Mullins Wheels is also making profitable inroads into the American market;
  
• PBR sells its brake systems for use on the Corvette;
  
• BTR have sold transmission equipment to Maserati; and
  
• Bishop Steering's technology is to be used in all European-manufactured Mercedes-Benz passenger and light commercial vehicles
  

Conclusion - a vital and forward-looking industry

The Government is committed to supporting a viable Australian automotive industry that competes with the world's best. Its success, typified by the companies I have mentioned and by others whose products are on display today, means jobs and export dollars for Australians.

It is with the greatest of pleasure, therefore, that I declare this Trade Show open, and invite all of you join me in seeing what exciting developments the winning team in the Australian Performance Racing Trade Show have in store for us.