ABC 891

21 Jan 2016 Transcipt

E&OE TRANSCRIPT
891 Adelaide Interview with Matthew Abraham and David Bevan
21 January 2016

SUBJECT: The South Australian Car Industry


Christopher Pyne: Good morning Matthew, good morning David.

Matthew Abraham: I think you have made the point in text correspondence this morning with us you don’t want to raise people’s hopes however how hopeful should we be about the possibility that Punch International’s Guido Dumarey may buy and run the General Motors’ Holden plant in South Australia?

Christopher Pyne: Well Mr Dumarey and Punch Corporation do have a track record if being able to purchase General Motors factories and turn them around. They did it as Strasbourg in Europe and of all the people that I have met and talked to about the automotive industry, and continuing to build cars in Australia, of course the automotive industry will continue without cars but those that want to build cars, Mr Dumarey has probably the best prospects and I’ve engaged closely with him and with General Motors and given him a letter of support from the Commonwealth Government indicating that we will do what we can to help him to realise his goal.

Matthew Abraham: When did talks with Dumarey start?

Christopher Pyne: Before Christmas. I met him early in December I think, it was early in December, it was certainly in December.

Matthew Abraham: Did the- he wants money and who can blame him, everybody else wants money from the Federal Government to manufacture in Australia, how much…

Christopher Pyne: Well he doesn’t really.

Matthew Abraham: Okay. What does he want? He wants help.

Christopher Pyne: He wants to be able to access the Automotive Transformation Scheme and of course…

Matthew Abraham: That’s $800 million, I think we’d call that money.

David Abraham: That’s serious money.

Christopher Pyne: But as you pointed out before, Matthew, before I was just going to do an interview with the Premier, the Automotive Transformation Scheme is legislated into 2021, and the only reason that it’s forecast to be a saving to the Government is because Ford, Toyota and Holden have indicated they will close in 2017 and the legislation requires there be to a car manufacturer in order to be able to access the ATS. So if Mr Dumarey’s Punch Corporation does take over Holden and it can’t be nabbed by the Victorians as you indicated, because of course he wants to buy Elizabeth, not Broadmeadows. If he did and he produced 30,000 units a year, which he indicated to me he would do, then of course he’d be able to access the Automotive Transformation Scheme until at least 2021 because that’s what the legislation says. So it’s important for people to understand that he would be able to access Commonwealth Government support, as long as he fulfilled the requirements of the ATS which he says he would.

Matthew Abraham: But your government has already booked the savings from their not being car manufacturers in this country claiming the Automotive Transformation Scheme. Is Scott Morrison onside?

Christopher Pyne: Well that is a forecast though David so that’s only forecast because the three car manufacturers have indicated that they’re going to leave.

Matthew Abraham: Yeah…

Christopher Pyne: If one of the car manufacturers turned around tomorrow for example and said they had changed their mind then the forecast would have to change. If Mr Dumarey successfully purchases Elizabeth from General Motors and that’s really a matter for General Motors and I’m working with him to make that happen, if that happened he would be able to access the Automotive Transformation Scheme.

Matthew Abraham: Okay so you are you saying that look it really doesn’t matter what the conservatives within the Government are pushing for and we know that years now, the conservatives within the Liberal Party for their own reasons- you know, they honestly believe this stuff- that they think it’s a good idea to close down automotive industry because it wasn’t sustainable, let other people make- do it and we’ll do what we do best. Are you saying it doesn’t really matter what they want to do, this is locked in in legislation and if Chris Pyne and Jay Weatherill can pull this off and get Dumarey out here, then the money will flow?

Christopher Pyne: Well I wouldn’t put it the way you have but I can certainly tell you as the Industry Minister, my priority is to create jobs and growth whether it’s in South Australia or whether it’s anywhere else in the country and the Automotive Transformation Scheme is legislated, now it’s legislated until 2021 which means that yes, if Mr Dumarey succeeds then he will be able to access Commonwealth Government support and he’ll do it with my encouragement and blessing.

Matthew Abraham: Is Greg Combet involved in this, just quickly? We’re paying him big, big, big bikkies as a consultant.

Christopher Pyne: Not that I’m aware of, no. He hasn’t contacted me about it.

Matthew Abraham: Chris Pyne, thank you.

Christopher Pyne: Thank you.

Matthew Abraham: Federal Minister for Industry, Innovation and Science, he’s the Federal MP for Sturt, Liberal MP in South Australia.