sandmanls1
14-02-2008, 05:43 AM
Mr Bracks will today be appointed to head a wide-ranging review of the automotive sector in the wake of Mitsubishi's recent decision to pull out of Australian production.
The new inquiry will examine the competitiveness of the vehicle manufacturing industry, which has been hit by high petrol prices, a strong Australian dollar and substantial competition from imports.
There has been mounting speculation within the car industry that Mr Bracks would be chosen to head a panel of experts investigating the viability of the sector.
Yesterday, following a tip-off, the Opposition raised questions in Parliament about the imminent appointment of the high-profile Victorian.
Federal Innovation Minister Kim Carr would neither confirm nor deny the looming appointment when quizzed by Tasmanian Liberal senator Eric Abetz.
Treasurer Wayne Swan also told Parliament he was not in a position to confirm Mr Bracks' new task.
But Senator Carr described the review process — which was an election commitment by Labor — as "long overdue".
"The fact of the matter is this: there have been 7000 jobs lost in this industry since 2002," Senator Carr said in parliamentary question time.
"I have stated on numerous occasions that we will establish a review into the whole industry and its sustainability," he said.
"This industry is facing acute challenges. But what we saw from the previous government was a government essentially on automatic pilot."
The appointment of Mr Bracks, expected to be confirmed late today, will be welcomed by the vehicle industry, which has been keen to keep the review away from the Productivity Commission.
The commission is a Treasury agency that has driven the process of micro-economic reform in Australia by recommending bold changes, such as the dismantling of tariff protection.
Car industry tariffs are due to be cut from 10% to 5% in 2010, but some sections of the industry want to freeze the current level of industry protection — a move unlikely to be endorsed by the Productivity Commission.
Ahead of Mr Bracks' appointment, the Deputy Opposition Leader, Julie Bishop, said Mr Rudd was embarking on a "jobs for the boys season" and claimed Mr Bracks would be paid a salary of $10,000 a week.
Sources have told The Age that Mr Bracks will be paid at a much more modest rate determined by the Remuneration Tribunal, in the order of $570 per day.
Victoria is a key centre for the car manufacturing industry in Australia.
The new inquiry will examine the competitiveness of the vehicle manufacturing industry, which has been hit by high petrol prices, a strong Australian dollar and substantial competition from imports.
There has been mounting speculation within the car industry that Mr Bracks would be chosen to head a panel of experts investigating the viability of the sector.
Yesterday, following a tip-off, the Opposition raised questions in Parliament about the imminent appointment of the high-profile Victorian.
Federal Innovation Minister Kim Carr would neither confirm nor deny the looming appointment when quizzed by Tasmanian Liberal senator Eric Abetz.
Treasurer Wayne Swan also told Parliament he was not in a position to confirm Mr Bracks' new task.
But Senator Carr described the review process — which was an election commitment by Labor — as "long overdue".
"The fact of the matter is this: there have been 7000 jobs lost in this industry since 2002," Senator Carr said in parliamentary question time.
"I have stated on numerous occasions that we will establish a review into the whole industry and its sustainability," he said.
"This industry is facing acute challenges. But what we saw from the previous government was a government essentially on automatic pilot."
The appointment of Mr Bracks, expected to be confirmed late today, will be welcomed by the vehicle industry, which has been keen to keep the review away from the Productivity Commission.
The commission is a Treasury agency that has driven the process of micro-economic reform in Australia by recommending bold changes, such as the dismantling of tariff protection.
Car industry tariffs are due to be cut from 10% to 5% in 2010, but some sections of the industry want to freeze the current level of industry protection — a move unlikely to be endorsed by the Productivity Commission.
Ahead of Mr Bracks' appointment, the Deputy Opposition Leader, Julie Bishop, said Mr Rudd was embarking on a "jobs for the boys season" and claimed Mr Bracks would be paid a salary of $10,000 a week.
Sources have told The Age that Mr Bracks will be paid at a much more modest rate determined by the Remuneration Tribunal, in the order of $570 per day.
Victoria is a key centre for the car manufacturing industry in Australia.