Doorstop - Round Two of the Next Generation Manufacturing Investment Program
29 Jan 2016
Transcipt E&OE TRANSCRIPT
Doorstop - Round Two of the Next Generation Manufacturing Investment Program
29 January 2016
SUBJECTS; Announcement of Round Two of the Next Generation Manufacturing Investment Program.
CHRISTOPHER PYNE: Well, firstly I’d like to thank you all for coming to this announcement this morning about the Round Two of the Next Generation Manufacturing Investment Program and I’d like to thank Bob Johnson and his team here at Maptek for hosting me here in my electorate at exactly the kind of high-tech, start-up, advanced manufacturing business that will benefit from the kind of grants, the kind of support the Government is providing through the Next Generation Manufacturing Investment Program. Just to give you some background, the announcement that we made when Holden said that they were leaving Adelaide in 2017 and Ford and Toyota from Melbourne was that we put $155 million forward as a growth fund for South Australia and Victoria.
The Next Generation Manufacturing Investment Program is 90- now $90 million of that spending. It was 60 but I found another $30 million within the Government’s Budget for growing businesses that we know will have a future in advanced manufacturing in South Australia and Victoria. The way the Next Generation Manufacturing Investment Program works is that businesses put in a co-investment and the Government match that in Round One and in Round Two the Government will put in $1 for every $2 that businesses put in.
So far we’ve helped about 15 businesses here in South Australia out of 26 businesses that have been helped, so South Australia’s had the majority of businesses being supported and tens of millions of dollars have been highly invested by the Government or by business, I think it’s up to about $75 billion, now in next generation manufacturing. It’s important for the public to understand that there is a big future for manufacturing in Australia. In fact, for value, manufacturing is growing in Australia. It’s still one of the largest parts of the economy and the- those who are doomsayers about the automotive industry, for example need to understand that there is a very bright future for the automotive industry in Australia.
Ford, for example, are leaving 1100 workers behind in Melbourne when they stop producing cars that will be doing research and development and marketing and design in Melbourne. There are countless businesses that I’ve been visiting as the Industry Minister that are in the automotive sector, even in the after-markets part of the automotive sector, that are investing in the future and growing their businesses. They’re doing this because of support from the Commonwealth Government but also the State Government’s in Victoria and South Australia who will help me to create new supply lines, new export markets, reduce their costs, support changes in their equipment that will allow them to become cost effective and compete around the world. And things like of course the Free Trade Agreements with China, Japan, South Korea and the Trans- Pacific Partnership are opening up new opportunities for the automotive sector.
So, the Next Generation Manufacturing Investment Program that we’re announcing today, Round Two is $30 million. It opens today, it closes on 18 April, we’re making it much easier for businesses to apply. The- since the system before was that the Commonwealth, Victoria and South Australia had to agree before grants were made. Now South Australia and Victoria have been prepared to let the Commonwealth, the Australian Government make those decisions so they’re a more streamlined process, we’ve reduced the criteria from five to three to make it easier for businesses to be actively involved in applying and we’ve reduced the grants from $5 million to $2.5 million so that more businesses will be able to benefit from this round of the Next Generation Manufactured Investment Program.
What it means is jobs and growth here in South Australia and in Victoria, jobs and growth for those workers in- older manufacturing that are transitioning to new manufacturing or new jobs and I am very confident that with the investments the Australian Government is making and Victoria and South Australia, there is a very bright future. Those people who talk about job losses in the hundreds of thousands are talking about if Governments did nothing and if business did nothing except stand still when Toyota, Ford and Holden said they were leaving but that hasn't happened. Businesses aren't looking forward to going out of business. They try and stay in business. Governments want jobs and growth in the economy so of course we've acted and today's announcement is an extension of the continuing Government support for manufacturing and jobs here in South Australia and in Victoria.
QUESTION: How many jobs do you anticipate the $30 million will create and surely it won't put a dent on how many thousands of jobs will be lost when Holden does close?
CHRISTOPHER PYNE: Well, that's a very negative way of putting the question which I think is one of the issues in South Australia, is that the- and in Victoria, is that the media are constantly talking down the economy, whether it's in this state or in Melbourne. Obviously, this will create jobs because it will keep businesses open. I can't and won't put a finite figure on the number of jobs it will create because I think that is a pointless exercise. What I will say, though, is that if you invest $30 million in Australian businesses and then they invest themselves another $60 million, a $90 million investment in the economy here in Adelaide and in Melbourne is obviously going to create jobs and growth in the economy and give people the chance to stay in business and find new ways of selling their products and services and expanding the economy.
Now, it would be very easy for me just to pick figures out of the air and say this is how many jobs will be created but honestly I think that is a pointless exercise and I think the South Australian public, particularly, but also the Victorian public, are not looking for negativity around positive announcements like today's. They're looking at people who are going to say this is a great opportunity to do good things rather than how can we knock this idea down before it's started.
QUESTION: How have you found the $30 million, particularly because in this election year the battle in the North in terms of jobs and the transition into the future will be a particularly important one for the hopes of [indistinct]?
CHRISTOPHER PYNE: Well, within the $155 million Industry Growth Fund there are a number of elements of those. One of those elements was an ongoing argument between Victoria and South Australia and the Australian Government about how the money should be spent. It was $30 million, there were the same- what I regard as reasonably bureaucratic debates about GST and how much GST might be lost. I cut through the Gordian knot of that argument and said to the state governments in Victoria and South Australia I think we'll take that $30 million and we’ll put it into the Next Generation Manufacturing Investment Program, which is really working, it is very popular with business, and they agreed to do that and that’s why we have another round so it's a good example of cooperation between state and federal governments, putting the jobs of families and individuals first rather than pointless debates around who's paying for what.
QUESTION: Is it fair to say this is an important battleground and in that context what do you make of the State Labor's investment yesterday of 24 million in the Northern Economic Plan?
CHRISTOPHER PYNE: Well I wouldn't describe it as a battleground, I would describe it as part of Australia, whether it’s in Melbourne, or Geelong or in Adelaide, which has potential head winds which we are trying to help them to navigate and I think we will. I think the Australian Government, working with Victoria and South Australia, and with business, has got the wit to create the jobs and growth necessary here in my great state and in Victoria. I do welcome the South Australian Government's $24 million contribution yesterday. Of course it's dwarfed by everything the Commonwealth has already committed because the National Government- the Next Generation Manufacturing Investment Program is just one element of our response to the jobs issue here.
We also have the Automotive Diversification Program and a couple of weeks ago I announced more grants in the Automotive Diversification Program. There's the rest of the Industry Growth Fund, there are programs about helping businesses find new export markets and supply lines. The total cost of that is $155 million-plus but I do welcome South Australia's contribution yesterday and I hope it will work and if we can assist them in the delivery of that- those programs we will, because this isn't about politics, it's about what's good for South Australians in the case of their announcements yesterday and what's good for South Australians and Victorians in the case of ours today.
QUESTION: The State Government wants you to release the remaining money of the Automotive Transformation Scheme to car components makers to help them diversify more quickly, will you do that?
CHRISTOPHER PYNE: I don't think the State Government understands the Automotive Transformation Scheme. The Automotive Transformation Scheme is a legislated scheme. It runs until 2021-’22. If there is a car-maker in Australia making cars, then the Automotive Transformation Scheme automatically supports those car manufacturers and component providers to those car manufacturers as long as they have a certain percentage of their business which is the car manufacturing business. If there is a car manufacturer, the Automotive Transformation Scheme continues. So, at the moment, the three car manufacturers say they're closing in 2017.
If any of them change their mind or if, working with me and with others, we can encourage Punch Corporation, for example, to take over the Holden plant, then there will be an Automotive Transformation Scheme operating that gives money to Punch Corporation or anybody else for that matter that takes over Holden or any other car manufacturing business, say in Victoria. So I think a lot of people don't understand how the Automotive Transformation Scheme works. It isn't coming to an end except that the car manufacturers are closing. If they don't close it doesn't come to an end.
QUESTION: Is there any scope to make amendments to the legislation so it would be available to car components makers?
CHRISTOPHER PYNE: Well it is available to car component manufacturers.
QUESTION: But only if the car making continues.
CHRISTOPHER PYNE: But that's the scheme.
QUESTION: Could the scheme be changed?
CHRISTOPHER PYNE: I think that's a- honestly I think that is a distraction. Now today we're talking about the Next Generation Manufacturing Investment Program. A couple of weeks ago I was talking about the Automotive Diversification Program. This is the Government investing in new businesses. The Automotive Transformation Scheme is a separate scheme. It is operating, working right now, money is flowing out of it as we speak. If there is a car manufacturer it will continue to flow. There are car component manufacturers receiving that money now. I think people need to study the area before they make statements which indicate - in this case the State Government - that they clearly don't understand how the car industry works.
QUESTION: Is it your preference that the money goes to the Punch Corporation?
CHRISTOPHER PYNE: It is my preference there be a car manufacturer in Australia, whether that's at Elizabeth or whether it’s in Geelong or at Broadmeadows. I would like all the car manufacturers to still be operating in Australia. It wasn't the Government's wish that they close but that was a decision that they made because they're corporations that make their own decisions. If we can encourage Punch Corporation or any other corporation to take over Holden at Elizabeth, I would be very excited about it and Punch Corporation are coming to see us again next week in Canberra. We are working day and night to try and make that happen and that means the Automotive Transformation Scheme will continue.
QUESTION: Do you think Tony Abbott should remain on the back bench?
CHRISTOPHER PYNE: Look I'm not going to get into this constant discussion about Tony Abbott's future. He's made it clear that he wants to remain in the Parliament. I welcome that decision. The role that he plays is a matter for him.
QUESTION: Mr Pyne, Kevin Rudd’s bid for the UN top job, would you be happy to support that, you’ve previously described him as someone with a Napoleonic ego.
CHRISTOPHER PYNE: Well I think, I think some people need a healthy ego to be in politics and in the media naturally. Look if Mr Rudd is a serious contender the Government will discuss our response to that at the appropriate time.
