5 September 2008
Press Conference
SIMON CREAN: Well, I mean this is us supporting the export of a luxury car, it's our political opponents that are frustrating the budget process, but I just want to reinforce the point, Australia's economic future lies in exporting more.
Today's announcement is a significant page in the export story, and we've got to, as policy proponents, create the environment in which we continue to support and drive the innovation excellence that has put this car into a very competitive market. It's there, badged as itself, because it represents Australia, innovation and excellence. That's what we're good at, what we've got to be able to do is to sell it to the rest of the world, it's the Government's job to open up those markets, and we'll be working very closely with our industry partners, to ensure that that happens.
QUESTION: Can we expect some job opportunities?
SIMON CREAN: I think that if we can get a solid basis upon which the industry can invest securely and confidently for the future, we will not only see the securing of job opportunities in this sector, we can even look to global.
If we can open up the markets, if we can support innovation and excellence, if we can be leaders in terms of fuel efficiency and greener cars, take opportunity from the climate change debate, if we can do that, then we will create jobs, that's our task, I'm confident we can do it, I know that Theo is committed to that task, and you only have to look at Victoria. Victoria is leading the country at the moment in terms of growth, because it had the foresight to make the investment in the infrastructure, to create the basis for future growth, that's what we've got to do, that's what this investment is about, that's what the Government's deliberation in terms of the Bracks Review will be about, so you've got good Government backing now in terms of industry policy.
QUESTION: [Inaudible]
SIMON CREAN: You'll have to go to the company, our task is to create the environment in which companies can make those decisions with confidence for the future. Australia is a great manufacturing base, it's shown it can export, we've got to open up markets, they've got to continue to be innovative and productive, the Government has a key role to play in supporting that, as well as opening up the markets, and under this Government, under the Rudd Labor Government you'll get it, and I know you're getting it in Victoria.
QUESTION: [Inaudible]
SIMON CREAN: I think the difficulty with putting time lines to trade agreements is that the time line becomes the issue. I think if it were not for the difficulty with the FTA that Korea entered into with the United States had run into we'd be able to progress ours much more effectively. It hasn't, it's caused difficulties not associated with the sorts of things we're talking about here, but with that country.
But I think it was important when the Prime Minister visited, and had discussions with the President, to commit to trying to initiate this as soon as is possible, and to take it forward. We know that it is one that we are going to have to secure, we believe that they accept that as well, but the formalities, we'll just have to allow time to sort that through.
I just think that this is an example of how we need to kick it along, and this is actually getting in there, into a direct, competitive market, it's getting in there with trade barriers. Just imagine how much more effective the way forward would be, if we could break those barriers down.
QUESTION: One of the major implications of the Bracks Review you talked about before was the tariff cuts [inaudible]. Where do you stand on that, and is it compatible with opening up.
SIMON CREAN: One of the recommendations was not to pause [inaudible]
QUESTION: [Inaudible]
SIMON CREAN: No, it wasn't a recommendation, the Bracks Review was - he in fact said that we should proceed...
QUESTION: Where do you stand on [inaudible]
SIMON CREAN: Well, I support in that context, the recommendation that Steve Bracks came out with. I don't believe that the tariff protection has ever been the basis in recent times, when we've had big expansion into export markets in particular, the tariff hasn't been the basis upon which we've really gone forward, but in the export facilitation components, and I must say in my view, they were always developed, and got better commitments, when they were developed by Labor Governments.
The big surge in vehicle exports came with the export facilitation scheme because effectively we saw that if our future lay not in just producing for the domestic market, but going to overseas markets, we had to do what was necessary to open up those markets.
Now I don't see how we can say, look, we're going to keep tariffs at 10 per cent, when we've already negotiated to zero with Thailand, to the United States, two of our three largest markets, in terms of cars.
Interestingly, the reduction in the US market, I believe has been an important factor as to why the ute, have been able, especially the ute, because the ute had a 25 per cent tariff on it. It's zero. The ASEAN Free Trade Agreement, is committed to the circumstances where they will eliminate their tariffs between 2010 and 2012. We still have some negotiations to do with certain countries to ensure that they fall into that.
But in the context of what we're trying to do to, position the industry for the future, imagine the opportunities that that creates if we're successful, in opening up new marketing opportunities. If we can't insist on their opening, unless we're prepared to do the same, and that's why we've got to seek tariffs, not in terms of simply looking at what it does to the domestic market, but to see what negotiating point we can leverage to open access to other markets. That's the future to this industry.
But it will only do that if one, we can open the markets, and two, we're competitive enough to take advantage of the point I made before. How we're going to be competitive, is through innovation, it's through design, and that's what this company is good at, I know other companies are also good at it, but that's what's on display here today, that's what we've got to promote, we've got to secure the base, we've got to open the markets, and that's why I think that that's important, we've got the right balance, and it's in that context that the Government has to develop its response.
ENDS
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