Funding The Future
The Age
Saturday April 5, 2008
The Industry Minister will talk over Australia's plans with US car bosses, reports Ian Porter.
Federal Industry Minister Senator Kim Carr will travel to the US in June to meet senior car company executives to explain the Government's approach to the redevelopment of the local automotive industry.He will be meeting one of the most senior people in Detroit, Ford chief executive Alan Mullaly, to outline Canberra's new approach to research and development and investment generally. He will also be meeting leaders from other manufacturing industries, including biotechnology.Senator Carr said part of the message for Detroit car makers will be that the $500 million Green Car Innovation Fund was not simply aimed at encouraging Toyota to make hybrids in Australia.The government would not be selecting the efficiency and environmental technologies to be developed with the grants, which will be issued on a one-for-three basis, he said."We are agnostic about the forms of technology that should be undertaken in these projects, whether it be hybrid, hydrogen combustion, hydrogen fuel cell, flexi-fuel ethanol, clean diesel or LPG (liquefied petroleum gas)," he said at the launch of the Greening the Supply Chain program this week.Senator Carr said the fund would also be open to the components industry so it could develop fuel-saving technologies such as cylinder deactivation, dual-clutch transmissions and various drivetrain components."We are in the business of seeking out new business opportunities to help vehicles be produced in this country which are more environmentally sensitive," he said.Senator Carr said he would also be meeting executives from other manufacturing industries, including biotechnology, to explain the government's new approach to innovation.He said a study by his department had found that Australia's research and development ranking had slumped from eighth to 15th in the world when measured as a percentage of gross domestic product."There has been some increase recently in our business expenditure on research and development, but our competitors are moving at a faster rate, so now we have to reconsider how we can lift our performance."In my view, we have to double our R&D spending, public and private, over time. We are 50% off world's best practice," he said."China is doubling its expenditure on R&D every seven years. We have got to look at improving our performance."The Victorian Government would urge the Bracks review to consider the non-tariff barriers imposed by other countries on Australian cars and parts in its submission to the inquiry, state Industry Minister Theo Theophanous said yesterday."We are happy for the inquiry to look at tariffs in the same context that the rest of the world is looking at them," Mr Theophanous said."We don't think Australia should be the testing ground that goes ahead of the game on tariff reductions and puts itself out there against the interests of its own industry if the rest of the world is not prepared to move."Mr Theophanous also suggested that there could be more at stake for Australia than the loss of tens of thousands of jobs if the automotive industry was to close down in Australia."Some people around the world have described the difference between first-world and third-world countries on the basis that the advanced first-world countries almost all have an advanced automotive production system."It's an interesting concept and, of course, third-world countries are trying to create automotive industries for just that reason."The world's first full-sized hybrid car was Holden's Ecommodore, which debuted as a concept car in 2000, featuring a 95 kW, four-cylinder petrol engine allied to a 50 kW electric motor. At the time it was reported that it used only half the fuel of a regular Commodore and cut emissions by up to 90%.As history would have it, it never went into production, despite estimates at the time it would cost only $3000 more than a regular V6 model.
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