5AA Breakfast

20 Jan 2016 Transcipt

E&OE TRANSCRIPT
Interview with David Penberthy and Will Goodings – 5AA Breakfast
20 January 2016

SUBJECT: Automotive Diversification Programme

David Penberthy: Thank you for joining us Minister.

Christopher Pyne: Good morning David, good morning Will.

David Penberthy: Now, South Australia is going to be a pretty significant winner out of these announcements that you’re making today.

Christopher Pyne: Well it is. So I’m announcing about $5 million of government support under the Automotive Diversification Programme, which will lead to about $17 million worth of overall investment across South Australia, Victoria, and a small amount in WA, in those business that are advanced manufacturers moving away from just being in the automotive sector, to servicing a much wider range of clients both here and overseas. It’s a very forward-looking program. It was part of the Federal Government’s response to the closure of Holden, of Ford, and Toyota, part of the growth fund that we established of $155 million. And what we’ve found in the last couple of years is since Holden decided that they were closing down, a lot of businesses that thought they were going to go out of business are discovering that they can find new forms of using their expertise and their capacity in different parts of the economy, and also exporting in a much wider range of countries, and will stay in business. So the outlook for the automotive sector is much, much more positive than it was a couple of years ago, which is great news for our state.

David Penberthy: Is the $5 million the sum of Federal Government assistance to the component manufacturers in South Australia? Because at one time the Automotive Transformation Scheme was some $900 million.

Christopher Pyne: Well they’re two different schemes. So there’s the Automotive Transformation Scheme, which supports car manufacturers, there’s the Automotive Diversification Programme, which has been announced since the announcement of the closure of Holden, and that is designed to help businesses move into new lines of work - like today we’ll be announcing five different South Australian businesses that are going to be the recipients of those grants. There’s the Next Generation Manufacturing Programme, which is just for Victoria and South Australia, and that is to support advanced manufacturers in trying to find new supply lines and new export markets. So there’s a whole range of different programs, and this is probably one of the smaller ones, but it’s an important part of the overall response, which means that the job losses that were talked about a couple of years ago will be much, much less than they would have otherwise have been thanks to the response of the Federal Government. But I must also say the South Australia and Victorian Governments have been part of the response to that as well, because obviously we all want jobs and growth for our state.

David Penberthy: Is Labor right, Christopher Pyne, when they say that the Federal Government is investing a reduced amount of money in this, that you pulled funds out of the Automotive Transformation Scheme? Or do you think that it was fair that the Commonwealth did reduce the total outlay on the basis that Toyota, Holden are no longer going to exist anyway?

Christopher Pyne: Well they’re different kinds of funds. So the Automotive Diversification Programme, which is the one that I’m announcing today, is about helping businesses move into new lines of operation. The Automotive Transformation Scheme has been going since the Howard Government, and it goes to car manufacturers who produce 30,000 units a year. So if there’s a car manufacturer producing 30,000 units they’ll be able to access the Automotive Transformation Scheme. At the moment there are only three of those – Toyota, General Motors-Holden, and Ford. They are slated to close in 2017, but the scheme is slated to continue until 2021. So for example, right now I’m working with Punch Corporation, a guy called Gredo Domani from Belgium who is talking to General Motors in Detroit about how he might be able to take over the operations at Elizabeth. And if that comes to fruition, which would be terrific but it’s very early stages, they would expect to create 30,000 units a year. And if they do that, they’ll be able to access the Automotive Transformation Scheme. So, there are- scheme is not closing, it’s just the car manufacturers won’t be accessing it anymore. But if there is a car manufacturer accessing it, it will continue.

David Penberthy: On another question, and just to wrap up Chris, there were reports out of New South Wales this morning that there’s a looming raft of fairly bitter preselections underway within the Liberal Party over there. Interestingly, the former Prime Minister, Tony Abbott, is said to be running again for the seat of Warringah, possibly with a view to regaining his former job. Do you think that Mr Abbott still has a role to play within the Liberals, and do you think that he should run again for Warringah?

Christopher Pyne: Well that’s a decision that he needs to make, and I would welcome his continuation in public life. I think he has made a great contribution over the past two decades as a prime minister, as a cabinet minister, as a member of the House of Representatives. And if he decides that that is the way that he wants to continue to contribute to our great country well I’ll welcome that decision. But that really is a matter for him.

David Penberthy: Has he made a great contribution over the last two to three months though? I mean, has he been an asset or an irritant for the Turnbull Government?

Christopher Pyne: Well I think every great advocate for the non-Labor side of politics is a good person to have around, and Tony Abbott is a great advocate for philosophies that many of us believe in. So, of course I welcome his contribution and he’s a very good friend of mine as well, and I’ve managed to maintain friendships with him, and with Malcolm, and with many others over many decades. So, people don’t have to fall out with each other when they decide that there needs to be a change, and I certainly haven’t fallen out with most of my colleagues. But these preselections always through up interesting times. I of course defeated a sitting member from the Liberal Party in a preselection in the long distant past, in 1992, and then I was challenged myself, and I won that challenge. So, you know, this is part of the democratic competition that the Liberal Party encourages, unlike the smoke-filled dark rooms of the Labor Party where those things are divided up by Mark Butler and Don Farrell.

David Penberthy: Christopher Pyne, the Member for Sturt, thanks for joining us and we look forward to catching up with you and Anthony Albanese next Wednesday.

Will Goodings: Minister for innovation- he innovates some good lines, there’s no doubt about that.