(Transcript from World News Australia Radio)
Holden chief executive Mike Devereux says no decision has been made about the future of its car manufacturing operation in Australia.
Mr Devereux also told a Productivity Commission inquiry in Melbourne there is no time frame for the decision on Holden's Australian operations.
Amanda Cavill reports.
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Warren Truss says a recent statement released by Holden Australia's parent, General Motors, makes no clear commitment to continue manufacturing in Australia.
He says there needs to be a definite commitment to the future as soon as possible.
"They owe this to the workers of General Motors. Let us not go into a Christmas period without them making a clear commitment to manufacturing in this country, responding to this Government's endeavours to improve the manufacturing environment in Australia that Government that is committed to helping make the place one where manufacturing can prosper."
Holden chief executive Mike Devereux says a decision still has not been made on the company's local manufacturing future following speculation production will stop as early as 2016.
Debate on whether to continue to support Holden has been raging since reports emerged that a decision to withdraw from Australia had already been made by General Motors in Detroit.
Mr Deveraux has refused to comment on those claims or other speculation surrounding the company's future.
"I have just spent an hour and a half answering those questions. Many of you were in the room. everything that could have been asked of me has been asked of me. No decision has been made by General Motors. We had some clarifying questions regarding the cost to make things here, free trade agreements. It was a wide-ranging discussion and there's no decision been made."
Mr Devereux says the cost of manufacturing in Australia is more expensive than other plants in the region, and parent company General Motors needed certainty if it was to continue to invest in local production.
He also told the Commission, whose report is due out early next year, that it costs the company $3,750 per car, or around $300 million extra per year, to manufacture cars in Australia.
But he says Holden does not expect the Federal Government to close that gap although he says a public-private partnership is needed over the long term for his company to remain competitive in Australia.
Australian Greens MP Adam Bandt has warned of a possible recession if thousands of Holden jobs are lost and if the government presses ahead with its cuts to the public service.
"The Greens are worried about the effect on the economy especially in the southeastern states if Holden is allowed to go to the wall. With reports of up to 50,000 jobs being lost, the bulk of those in states like Victoria and South Australia, Tony Abbott does need to step up."
Industry Minister Ian Macfarlane has indicated he wants to give the car industry more money, but Prime Minister Tony Abbott and Treasurer Joe Hockey recently appeared to rule that out.
The Coalition has already committed a billion dollars to help the car industry after 2015 and says the rest is up the industry itself.
Coalition parliamentary secretary to the Treasurer, Steve Ciobo, says Holden won't necessarily close.
"I don't think anything's inevitable in that sense. Clearly there are strong economic head winds. What we're trying to do is get the business environment right. And that's not just for Holden, that's to make sure that every business in Australia is on a more competitive footing. With respect to Holden though as I said we've got a billion dollars on the table to 2015, a further billion beyond that. So it's not a case of all or nothing."
Independent Senator Nick Xenophon says it would be an act of economic vandalism to let Holden to close its Australian operations.
"The fact is, this industry is actually creating something like 50,000 jobs in Australia. If Holden goes, we will see a collapse in the whole supply chain of the auto industry in this country. It would make it impossible for component manufacturers and for Toyota to survive. So right now I implore the Prime Minister to get behind Industry Minister Ian McFarlane, who is doing everything he can in my view to keep holden Australia in reasonable terms."
Senator Xenophon also says Labor could help the car industry by voting to get rid of the carbon price, which he says is having an impact on the car industry.
