Ai Group comments on SA Govt response to Holden closure

The Australian Industry Group (Ai Group) has released a comment on the South Australian Government’s response to the Holden closure.

“Australian Industry Group supports, in particular, the initiatives to assist auto component suppliers transition to new opportunities announced today [Monday],” Ai Group SA Director Steve Myatt said.

“Ai Group believes the federal government should closely consider all of the six initiatives of the state government response, but, in particular, the ones dealing with transition and growth strategies.

“Ai Group has many member companies who are suppliers to Holden or suppliers to Holden’s suppliers and a comprehensive transition plan is not only required but also needs to be well resourced.

“In the six-point plan, the needs of affected workers have to be given appropriate priority but the initiatives to grow existing manufacturing to maximise the opportunity to employ Holden workers in the future, plus encourage suppliers to diversify their activities, are crucial to the state’s economic future.

“We also need to consider future opportunities based on what Professor Göran Roos, former Thinker in Residence, calls South Australia’s “manufacturing sweet spot”: low volume, high variability, high complexity and high value-added.

“An analysis of this proposition in the context of future prospects should be part of the overall package.

“Holden’s announcement was a ‘game changer’ for the state’s manufacturing industry. However, manufacturing in South Australia is more than Holden and we need to build on capabilities already in place elsewhere and identify opportunities as they emerge.

“Finally, Ai Group reiterates what we have said previously: the federal government response was regarded by us as an initial offering and the state government request for additional financial support is appropriate given the size of the task at hand.”