none

Urgent action needed to save auto industry

31-08-2010
by 
in 
Urgent action needed to save auto industry

Governments at all levels must work closely with the automotive industry to secure a sustainable future, says VECCI, the peak business body in Victoria.

VECCI says the industry’s future cannot be left to chance given its significance to the Australian economy. 

“The fact that the automotive industry is the largest single manufacturing segment in Australia is a compelling reason why governments at all levels must take seriously the task of working with the sector to secure sustainable improvements in competitiveness, said VECCI Chief Executive Mark Stone. 

“At stake is the exporting of vehicles and components worth almost $4 billion per annum, over 50,000 direct and indirect jobs, many of which are in Victoria, along with significant contributions to skills development, technology and innovation, he said.  

“Automotive industry research and development expenditure alone totals almost $700 million per annum. 
“Policy-makers cannot stand idly by at a time when the sector continues to struggle against the forces of a high Australian dollar, high fuel prices and strong competition from low cost producers.” 

Mr Stone said iconic automotive companies like Toyota are doing what they can to cut costs and boost productivity, but they need the right signals and support from policy makers, just as many of their overseas competitors receive from their governments.  

“With the right industry and economic policies in place, industry prospects can be strengthened as our producers respond to international challenges by leveraging their strengths in design, engineering and the production of fuel efficient vehicles, he said

”There is no silver bullet or quick fix for improving automotive industry competitiveness.  

“A blend of integrated and strategic reforms have the greatest prospect of securing a more sustainable and competitive footing for the industry. 

“These range from cuts to red tape and lower business taxes, to renewed support for research and development, improved access to capital, and securing reciprocal reductions in tariffs and non-tariff barriers among our major trading partners. 

“Of particular importance is the need for government support to help automotive producers vary existing enterprise agreements so they can modernise their work practices, lower costs and improve productivity.”

Related news & editorials

  1. piggy bank
    05.07.2021
    05.07.2021
    by      In , In
    Employers should be aware of a number of important changes to payroll and other obligations with the start of the new financial year,” says Innes Willox, Chief Executive of the national employer association Ai Group.
    “The recent Fair Work Commission Annual Wage Review decision increased national... Read More
  2. Yawei laser cutter
    16.06.2021
    16.06.2021
    by      In , In , In
    A commitment to providing outstanding customer service, staying abreast of local trends, and ongoing diversification led to Jmar Engineering in Shepparton, Victoria, celebrating it 25th anniversary recently.
    Jmar, founded by Mark and Janice Hooper, specialises in component manufacturing, repairs... Read More
  3. Matt and Ross
    09.06.2021
    09.06.2021
    by      In , In
    Simple, high-quality coffee is revered in Italy. So when an Australian of Italian heritage, who has been involved in the coffee business most of his life and visits Italy regularly, tells you that Australian roasted coffee is the world’s best, you sit up and take notice. And when he goes on to tell... Read More
  4. Files
    17.05.2021
    17.05.2021
    by      In , In
    Today’s businesses have no room for complacency; they must be fastidious right across their operations. The systematic drive for thoroughness is captured in one underappreciated word: compliance.
    At first brush, compliance can seem like a big and vague concept, detached from immediate business... Read More
Products
Suppliers