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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2017-10-17 Daily Xml
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Automotive Supplier Diversification Program

The Hon. J.E. HANSON (15:05): My question is to the Minister for Automotive Transformation.

The Hon. P. Malinauskas interjecting:

The PRESIDENT: Order!

The Hon. J.E. HANSON: Can the minister inform the chamber about measures assisting the diversification of the automotive industry?

The Hon. K.J. MAHER (Minister for Employment, Minister for Aboriginal Affairs and Reconciliation, Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for Science and Information Economy) (15:06): I thank the honourable member for his question and his ongoing interest in workers in the manufacturing sector, as I note he spent a large part of his life representing those interests.

There is a big circle around 20 October in the calendar—this Friday. It's the day when the last car rolls off the Holden manufacturing line and the manufacturing of whole cars ceases in Australia. It will be an incredibly sad day for this state and the nation as a whole. Naturally, people's minds turn to the question of what comes next, and it is a very good question indeed.

The state Labor government has been working incredibly hard to help automotive workers and automotive companies transition into new industries. For example, yesterday I was out at Sonnex. Sonnex is a northern suburbs metal fabrication business and has been a component manufacturer for Holden for more than 20 years. They currently have around 20 workers and have the contract now to dismantle much of the Holden factory. Over the next month, they plan to hire in excess of 20 former automotive workers. Last year, the company received a $417,000 Automotive Supplier Diversification Program grant from the state government to buy a new laser cutting machine. That grant was matched by an investment by the company, and they are already diversifying into a whole range of areas including defence.

Today I was at the fine food hub at Aberfoyle Park Shopping Centre. Steve Kovac, who runs the fine food hub, previously worked at Toyoda Gosei for 14 years in various roles on the factory floor, including as a team leader for the last five years. He is now the co-owner—

Members interjecting:

The PRESIDENT: If honourable members want to chat, there is a hallway out there. Minister.

The Hon. K.J. MAHER: He is now the co-owner of the fine food hub at Aberfoyle Park, having taken over the business in June. Using the state government's Drive Your Future program, Mr Kovac was able to access career advice, as well as personal support through our Beyond Auto and will soon undertake a small business course provided through the state government Automotive Workers in Transition Program. These are two great examples of companies and workers making the transition, and that is what we have been doing as a state government, which stands in very stark contrast to what we heard today from the federal government.

This morning, acting industry minister, Michaelia Cash, announced a measly $6 million for South Australian companies. This is after the federal government have pocketed almost $800 million in savings from the Automotive Transformation Scheme. They put in $6 million for South Australia. What adds insult to injury is that, at the same time today, they announced almost $25 million for Victorian manufacturers. They give us under $6 million and they give almost $25 million to Victoria. Once again, South Australia has been dudded by this federal Liberal government at the expense of the Eastern States.

With just a few days to go, this is far too little, far too late from the federal Liberal Party. While we are standing up for automotive companies and workers, the federal Liberal government are pocketing close to a billion dollars in savings and thinking it's good enough to come to this state and offer $6 million to manufacturing companies, none of which are auto companies. It is an outrage. Let's remember that it didn't have to be this way at all. Holden could and should still be making cars today.

We remember, in December 2013, that then Treasurer Joe Hockey launched an extraordinary attack on our car industry in question time, goading them to cease their operations in Australia. This is what then Treasurer Joe Hockey said: he said that it was time for Holden to come clean and be fair dinkum with the Australian people. 'Either you're here or you're not', goaded the then Treasurer. The very next day, after this extraordinary attack, Holden announced that they would be ceasing manufacturing in Australia. Do you know what's worse? That mob are proud of it! The federal Liberals are proud of what they did to South Australia. Those involved, those federal Liberal members, brag about closing down Holden—they wear it like a badge of honour.

The former Treasurer even said that they deliberately, willingly and knowingly used the closure of the auto industry as a bargaining chip for free trade agreements. He traded off our industry, our future, our jobs, as a bargaining chip for his own political purposes. All I can say is that I hope this week, as Joe Hockey is posing for Luxury Home Magazine in Washington DC, that he spares a thought for those auto workers who are losing their jobs.

It is in stark contrast what the federal Liberals are doing compared with federal Labor. Just this weekend, here in Adelaide, here in South Australia, the opposition leader, Bill Shorten, announced a $1 billion manufacturing fund—a $1 billion manufacturing fund—to help manufacturers in Australia, but particularly in South Australia and in Victoria. Put very simply, from the federal party's point of view, $6 million is what the federal Liberal Party came up with today: on the weekend in Adelaide, federal Labor announced $1 billion. It is a very, very big difference.

What have we heard from the state Liberals? Absolutely nothing—complete and utter silence from the state Liberal Party. The Liberal leader is weak, he is ineffective, and he won't stand up for South Australia. This government will always stand up for auto workers. If you are thinking about how you will vote at the next state and federal elections, it is exceptionally simple and exceptionally clear.

If you are a supply chain worker who lives at Aldinga, if you are a Holden worker who lives in Golden Grove, you compare what the parties have done. You look at the federal Liberals: they have shut down an entire industry. They brag about doing it. They pocket nearly $1 billion in savings and they offer up $6 million. In contrast, Labor: a billion dollar manufacturing fund, a state Labor that is supporting workers, supporting companies, and a state Liberal Party that is doing absolutely bugger all about it.

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