SA’s car industry output has collapsed with a massive fall of 85% in car exports in 2009, according to data released by the Australian Bureau of Statistics (ABS) today.

Shadow Minister for Industry and Trade Martin Hamilton-Smith has called on the Rann Government to urgently explain what is happening to SA’s car industry.

"South Australia’s car exports were worth $1.8 billion in 2008, now they are only worth $261 million."

"These figures show the startling reality of SA’s traditional manufacturing base of road vehicles, parts and accessories.

"The Rann Government is failing to address South Australia’s dismal record on exports with another fall in export values recorded in today’s ABS figures.

"In the 12 months to December 2009 the value of exports from South Australia fell by 21%.

"The value of South Australian exports has fallen from $9.1 billion in 2001-02 – when the State Liberals were last in power – to just $8.3 billion, without adjusting for inflation.

"There are conflicting messages emerging on the SA Economy. On the surface employment and economic activity is holding up for the moment due to government stimulus spending and investment linked to the Global Financial Crisis combined with low interest rates and cheaper fuel. But there is a deeper trend of concern.

"Employment in jobs in key industries like manufacturing and primary production are declining, exports are sinking and house price growth in SA is lagging behind every other State.

"Mr Rann and State Labor are spinning the good news and working hard to bury the real news. There is work to be done on making SA more competitive on core industry and employment outside of mining and defence, and on the economic fundamentals."