The Rann Government has conceded for the first time that total job losses from the Mitsubishi downsizing will be at least 3,600 jobs, according to Shadow Treasurer Rob Lucas.
“In Question Time today, senior Minister Paul Holloway revealed that the government believed the 2,000 direct jobs remaining at Mitsubishi sustained a total of 6,000 direct and indirect jobs in South Australia,” Mr Lucas said today.
“The Minister revealed that a multiplier factor of 3 (i.e. 2,000 x 3 = 6,000) was used by the government to calculate how many other jobs in component and supplier industries were dependent on the remaining 2,000 jobs at Mitsubishi.
“Now that this multiplier factor has been revealed it is clear the Rann Government’s estimate of total job losses from the Mitsubishi downsizing announced in May 2004 is 3,600 (i.e. 1,200 direct job losses x 3 = 3,600).
“It is interesting to note that the Rann Government has for some time been refusing to answer questions about government estimates of total job losses from Mitsubishi.
“For example, in the Budget Estimates Committee hearings on June 22, 2005, Minister Holloway was asked directly what multiplier factor was used by the government and what total job losses from Mitsubishi would be.
“Minister Holloway refused to answer the question and in fact claimed the government did not have such factors.”
Mr HAMILTON-SMITH: Indirect job losses are flowing from those closures. What factor or
figure would be used?
The Hon P HOLLOWAY: We do not have those factors.
Hansard, Estimates Committee A, 22 June 2005
“Minister Holloway and the Rann Government have now been caught out, and for the first time have had to acknowledge the enormous total impact of the Mitsubishi downsizing on employment in South Australia,” Mr Lucas said.