Press Conference at Multislide Industries

E&OE TRANSCRIPT
Press Conference at Multislide Industries
20 January 2016

Automotive Diversification Programme third round of funding announcement.

Matt Williams: Okay good morning everyone, thanks for coming out to Multi Slide in Edwardstown in my electorate of Hindmarsh. It’s great to be here with the Minister for Industry, Innovation, and Science, Christopher Pyne, my good colleague and friend. Also thanks to Rod and Phil for hosting us. Multi Slide is a good business, it works across a number of different sectors, and we’ve just heard this morning from Rod and Phil about their work in furniture in terms of the diversification to other areas, including aquaculture as well as some work in the mining sector. So, they’ve- it’s been great to be here with them, and I hand over to Christopher Pyne.

Christopher Pyne: Well thank you very much Matt, and it’s great to be here at Multi Slide in Matt Williams’ electorate of Hindmarsh, and I’d like to thank Rod and Phil very much for hosting us, and I’d like to thank all the workers who are putting up with us interrupting their day with this caravan of politicians and journalists. Today we are announcing the Automotive Diversification Programme, the third round of that program. That will be about $4.8 million worth of Commonwealth Government grants to 10 different businesses in Victoria, South Australia, and Western Australia; half of those are here in South Australia, and over half of the money will be spent here in South Australia. And that 4.8 million will be turned into about $18 million because of the extra investment of the businesses that are receiving grants. So for example, here at Multi Slide there will be a about $260,000 grant, which Multi Slide will add to and invest in new equipment to diversify into high-end furniture manufacturing. This is the future of course for South Australia and Victoria in terms of the automotive industry. There are lots of fantastic stories that are emerging in the automotive sector since the announcement by Ford, Toyota, and Holden that they’d be closing their operations, because the Commonwealth Government, and the Victorian and South Australian governments to give them their credit, in spite of being Labor, have all put their shoulder to the wheel and thought about different ways that we can make sure that we save the jobs and continue to grow the economy in South Australia and Victoria in the manufacturing sector. So the Automotive Diversification Programme is one part of that response. The $155 million growth fund that we established, that adds of course to the Next Generation Manufacturing Programme, which is specifically for South Australia and Victoria, and the Automotive Transformation Scheme, which is still in operation while there are car manufacturers in Australia until 2017, and hopefully beyond if we can land any of the people that are showing an interest in taking over the operations at Elizabeth.

So, today is a good news story. It adds to jobs in South Australia, it adds to growth here in South Australia, and Victoria, and Western Australia. And happily the announcements two years ago of the car manufacturers closing, which was greeted with some dismay in my great state of South Australia in particular, the expectations of job losses then are quite different now. In fact I was talking recently to a state government minister who said the expectation two years ago that 80 per cent of businesses in the automotive sector would close is now down to 20 per cent and falling. Because of the intervention of the Commonwealth Government and the state governments, automotive businesses are diversifying into exports, finding new supply chains, using things like the China free trade agreement, the Japan free trade agreement, South Korea, the Trans Pacific Partnership to find new markets. And here of course Multi Slide is a great example, going from their expertise in bending metal to create wire for the automotive sector, for seats in cars and trucks et cetera, to use in that to high-end furniture manufacturing, and even down to the HEGS pegs, which some people remember from the Shark Tank which were invented by a fellow here in McLaren Vale. And Multi Slide makes 60,000 of these very small metal clips a day here because of the quality of the production in places like Australia, and we’re intending to increase that, to double it over time. So from HEGS pegs to high-end furniture, Australians are showing that we can be part of the advanced manufacturing sector and grow jobs in our great state, and across Australia.

So thank you very much.

Question: I understand that this is the last round of this set of funding, but that it’s been quite popular. Would you look at having another round, or having another fund to try and make sure as many businesses as possible can get this sort of money?

Christopher Pyne: There have been 31 businesses that have benefitted from the Automotive Diversification Programme. There’s still a little bit of money left over in the programme, because some businesses change their mind after they’ve received a grant, for example. And so we’ll look to tidying those little bits of money that are still left available. The growth fund is 155 million, the Automotive Diversification Programme was only 20 million, so there’s still other programmes that are available for businesses, particularly for export and finding new markets. The ongoing programme, if you like, for advanced manufacturing, is the Next Generation Manufacturing Programme. I have managed to find funds within the Commonwealth to reorient from what I saw as an unproductive use, because of arguments between Victoria, South Australia, and the Commonwealth, we have reoriented that money into the Next Generation Manufacturing Programme. So there will be more rounds in that program, which is not dissimilar to this one. So there will be more announcements to be made over the coming months about supporting advanced manufacturing. Because we want to remember that manufacturing is still one of the biggest employers, in fact I think it’s still the biggest employer in the economy. Certainly not as big as it was when there were huge factories with assembly lines, but technology has changed manufacturing. And there is a great positive future for Australia in advanced manufacturing because of our highly skilled workforce, because of our ingenuity and innovation, and using things like the National Innovation and Science Agenda I think that the picture for the automotive sector is very rosy. I mean with the aftermarkets people for example a couple of times at the end of last year. They tell me that in the automotive sector 33 per cent of jobs in the automotive sector are the aftermarket section, and that is growing – that is in fact growing since the global financial crisis. So, there is a lot of positive stories for the automotive sector, and that is good for South Australia and Victoria.

Question: You’re at the beginning of an election year, are you concerned about infighting in New South Wales for the party and Malcolm Turnbull.

Christopher Pyne: No I’m not. I was elected 20-odd years ago, I defeated a sitting Liberal member in preselection. That’s part of the democratic competition that is the Liberal Party. I was challenged not long after by young enthusiastic people who thought that they’d knock off another young enthusiastic member, and I won that challenge, and that is part of the democratic process. We don’t decide our preselections in smoke-filled backrooms like the Labor Party does, when their factional leaders like Mark Butler and Peter Malinauskas divide up the spoils of office. We allow our party members to have a vote in a true democratic process, and we intend to continue to allow that to happen.

Question: So [indistinct] needed for Malcolm Turnbull?

Christopher Pyne: In preselections, especially after redistributions, there is always a robust democratic competitive process. The dust will settle, and life will go on.

Question: Would you support Tony Abbott becoming Prime Minister again?

Christopher Pyne: [Laughs] We have a excellent Prime Minister in Malcolm Turnbull. He’s doing a great job, he’s made an excellent start, he’s sustaining popularity because he’s seen to be stable, and calm, and measured, and has a grip on the job. There is no suggestion at all within the coalition in any quarter that there will be a change to our leadership. And I am looking forward to this election year, as I have every election year going back 20 years.

Question: But there’s a suggestion from Tony Abbott though, that’s one quarter of the Liberal party.

Christopher Pyne: No there isn’t. His spokesman this morning described those stories in the newspapers as utterly fanciful.

Question: Do you think it’s a good idea for him to run again in Warringah though?

Christopher Pyne: Look that’s a matter for Tony Abbott. He is a great advocate for the non-Labor side of politics. He, like me, thinks that we are the best party for jobs and growth, and that the Labor Party would threaten that economic prosperity that is starting to show its signs in the economy again. But if he wishes to run again he will continue to advocate for strong Liberal governments that create jobs and grow the economy.

Question: What about as a cabinet minister in the future?

Christopher Pyne: Look, speculation is your business; my business is creating jobs and growth in South Australia and Australia.

Unknown Speaker: One more question.

Question: You mentioned Peter Malinauskas a moment ago. Can you give us an idea of what your observations and thoughts are on this Malinauskas? I note as well that he was on 5AA this morning and confessed to having six speeding fines as well.

Christopher Pyne: Is that right, six speeding fines? Goodness gracious.

Unknown Speaker: Competing with Koutsantonis isn’t he?

Christopher Pyne: No, no one can compete with Tom Koutsantonis for speeding fines, that’s for sure. But- well, I hope that he doesn’t speed in the future, Mr Malinauskas. I said once before he married well, but I think the public will cast judgment on Labor at the next state election in two years, and I’ll be casting my vote for Steven Marshall.

Question: You don’t seem to have any love loss for Mr Malinauskas though.

Christopher Pyne: No, no, I think Peter Malinauskas is a very decent fellow, but obviously I don’t believe that the State Labor Government is producing the jobs or the growth this state needs. We have the highest unemployment in the land; we have high taxes, heavy regulation, and in some quarters of the Government an anti-development culture, and while we have that we won’t create the jobs and growth that we need.

Question: He’s also possibly created a rod for his own back. Yesterday he was saying that he’ll have a look at this police- the issue with the Police Association. Does that sort of set him up for problems right from the start?

Christopher Pyne: Look, I think matters to do with state parliament and state politics and the Police Association’s relationship with the Police Minister are really matters for Steven Marshall and Jay Weatherill. They aren’t matters for me, I’m here to announce good news about jobs and growth for South Australia.

[ends]