ADELAIDE car parts manufacturers are being promised a discount workforce earning just $1.12 an hour to lure them to set up offshore operations.

The Thailand Board of Investment dangled the carrot of cheap labour in front of about 30 car suppliers at a free seminar at the Adelaide Hilton Hotel yesterday.

There was also a chance for the suppliers to have private meetings. A similar event will be held at the Melbourne Convention and Exhibition Centre this morning.

The head of Federal Government-funded car lobby group Automotive Supplier Excellence Australia, Linsey Siede, organised the tour of the Thai delegation.

Duangjai Asawachintachit, deputy secretary general of the Thai board, said yesterday she wanted Australian car suppliers to take advantage of opportunities in Thailand.

"Wages are significantly lower than they are in Australia, the minimum wage is 300 baht a day, which is about $A9 for an eight-hour day. We hope that's our competitive advantage," she said.

"This is a very good opportunity for Australian companies particularly with the market growth in Thailand."

The Australian Manufacturing Workers Union says that it is worried about the car industry's future here amid fierce competition from Asian countries who are an "uneven playing field" because of their supportive governments.

Thailand is expected to make two million cars this calendar year across the 16 different car manufacturers based there, in an industry which employs 500,000 people.

Australian Manufacturing Workers Union assistant secretary Paul Difelice said Mr Siede had a conflict of interest.

"It's a bit rich that he's sitting on one board and then says as a private individual he's bringing this Thai delegation to look at the component industry," he said.

"These days with the high Australian dollar and tariffs reduced to nothing we're not on an even playing field.

"We've got a free-trade agreement with Thailand but it's all one-way."

Mr Siede, director of ASEA, said he was promoting the Thai visit as part of a separate private consulting role and denied he had a conflict of interest.

"The reality is ASEA is trying to make Australian companies more competitive so they can win business in Thailand and grow their business," he said.

ASEA is a program to support auto industry suppliers and has received $20 million from the Federal Government's $5.4 billion green car package.

Ford, Holden, Toyota and the Victorian and South Australian governments also support the program.

Mark Davis, a spokesman for Industry Minister Greg Combet, said the Thailand Board of Investment visit was not sponsored by ASEA.

He said that the $20 million given to ASEA as part of the New Car Plan for a Greener Future was to provide specialist advice and mentoring to parts suppliers.

"The Plan is not about offshoring Australian capability and jobs," he said.

"Under the Plan's $20 million Automotive Supply Chain Development Program, ASEA is funded to ... improve understanding of domestic and international markets; and assist the sector enhance its capabilities and better integrate into local and global supply chains."

Originally published as Thais woo car parts work at $1.12 an hour