Car industry subsidies to remain secret

Australia's car companies will be spared having confidential details of their
taxpayer subsidies revealed after the opposition rolled over to government and
industry pressure.
The coalition wanted a transparency amendment added to the Automotive Transformation
Scheme (ATS) bill, requiring the Department of Industry to prepare an annual report
detailing how vehicle and component makers had spent their funding.
But the federal government objected to this measure, which passed the Senate on Monday.
A day later, Labor used its numbers in the lower house to stymie the opposition's
amendment to the $3.4 billion car industry scheme.
The bill returned to the Senate on Wednesday and passed without the opposition measure.
This means "green" funding from the decade-long co-investment subsidy will begin
rolling out from 2011.
Contractual arrangements with car giants Toyota, Holden and Ford will stay
confidential.
Industry Minister Kim Carr thanked the opposition for giving up on its call for car
industry secrets to be revealed.
"The government applauds the opposition abandoning an amendment that had the
potential to frighten off investment, kill innovation and destroy Australian jobs,"
he said after the vote.
Opposition industry spokesman Eric Abetz expressed disappointment with the outcome
after the Senate - and his coalition colleagues - voted against his amendments.
"It is disappointing that the Labor government refused our amendments, which would
have required full disclosure and transparency of the grants paid out under this
scheme," he said.
"We believe it is not only in the taxpayers' interests, but also the interests of
the Australian automotive industry, that the veil of secrecy surrounding government
support to this sector be lifted."
Senator Abetz's comments put him at odds with the former Howard government, which
introduced a clause in 2003 allowing the industry minister the discretion to reveal
confidential details of car sector subsidies.
This power has never been used.
Federal Chamber of Automotive Industries chief executive Andrew McKellar, a critic
of the opposition amendment, said passage of Labor's original legislation was vital
to the Australian automotive sector's future.
"This legislation will underpin crucial innovation, investment, research and
development decisions and support thousands of jobs," he said.
The ATS was a key plank of the federal government's $6.2 billion car industry
assistance package to subsidise car industry production for the next decade.
The government and opposition agreed in August to revamp the scheme to ensure
automotive-sector recipients complied with economic sustainability, environmental
and workforce training outcomes.