Preliminary Findings Report
This is a preliminary findings report.
The Commission will release a position
paper in January 2014 and will finalise
its report following further public
consultation and input.
Commonwealth of Australia 2013
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An appropriate citation for this paper is:
Productivity Commission 2013, Australian
Preliminary Findings Report, Canberra.
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Terms of reference
REVIEW OF THE AUSTRALIAN AUTOMOTIVE MANUFACTURING
Productivity Commission Act 1998
I, Joseph Benedict Hockey, Treasurer, pursuant to Parts 2 and 3 of the Productivity Commission Act 1998, hereby request that the Productivity Commission undertake an inquiry into public support for Australia’s automotive manufacturing industry, including passenger motor vehicle and automotive component production.
Australian and State Government support for the automotive manufacturing industry is provided through the current Automotive Transformation Scheme, which provides assistance in respect of production and support for research and development and capital investment, through ad hoc grants provided to vehicle and component manufacturers, through tariffs and through relief from some state taxes. With the withdrawal of some manufacturers from local production in Australia, recent uncertainty surrounding tax policies affecting the industry, variability in exchange rates and the increasing openness of Australia’s automotive retail market, the circumstances under which assistance is provided to the industry warrant review.
Scope of the Inquiry
The Australian Government desires an internationally competitive and globally integrated automotive manufacturing sector and wishes to ensure that any support for the local automotive manufacturing industry is accountable, transparent and targeted at the long-term sustainability of the sector. In consultation with a broad range of stakeholders, and in the context of the Australian Government’s desire to improve the overall performance of the Australian economy, the Commission should, in its Review of the Australian Automotive Manufacturing Industry (the ‘Review’):
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