House debates

Wednesday, 11 December 2013

Ministerial Statements

Automotive Industry

7:40 pm

Photo of Tony AbbottTony Abbott (Warringah, Liberal Party, Prime Minister) Share this | | Hansard source

Madam Speaker, on indulgence: I do not want to mince my words and I do not want to pretend to the parliament that this is anything other than a dark day for manufacturing in this country. We have today received the very bad news—not entirely unexpected news—that Holden is to cease manufacturing in this country in 2017. Twenty-nine hundred jobs will be gone by 2017 and thousands of jobs are at risk in up to 150 suppliers. This follows the withdrawal from motor manufacturing in our country of Mitsubishi some years ago and Ford's announced 2016 close-down. This was part of a world-wide restructure that, amongst other things, involved the closure of General Motors' plants in Korea and the withdrawal of Chevrolet from Europe. So we should not think that motor manufacturing in this country has alone suffered bad news this day. But as the managing director of Holden has said, and I thank him for his sober statement today on what must have been a sad and bitter day for him, Holden has been hit by a perfect storm: high costs, the high dollar and low volumes, and that explains the decision that they have made.

Now is the time for a strategic response to the difficulties in manufacturing and particularly to the difficulties in our motor industry. It is not the time to play politics. It is not the time to indulge in the blame game. It is not the time to peddle false hope. It is time for a candid and constructive conversation with the Australian people and it is time for a considered and constructive response from government. That is exactly what this government will be providing in coming days. That strategic response starts with a review of the fundamental strengths of our country. It starts with a review of the fundamental strengths of the areas which will be most impacted by the Holden close-down in three years time. We do have strengths in component manufacturing. We do have strengths in manufacturing, particularly for the mining sector. We have enormous strengths in research and development, in higher education and in biomedical science. The government will be announcing measures in coming days that will build on the strengths that we have and which will offer hope for the people of the regions impacted. It will be a considered package of measures, designed to rebuild confidence in the long-term economic future of those regions, in the long-term future of manufacturing of this country.

Opposition Members:

Opposition members interjecting

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

Those on my left will desist.

Photo of Tony AbbottTony Abbott (Warringah, Liberal Party, Prime Minister) Share this | | Hansard source

As part of that, we will be talking to Toyota. They have long been the strongest motoring manufacturer in this country and I want to say that it is the government's strong wish that Toyota continue to manufacture in this country. It is the government's strong wish that Toyota continue to export from this country and we will be talking to them about the best ways of ensuring that that happens.

I accept that this is a sad, bad day for everyone involved in the motor industry. It is a particularly sad, bad day for the workers of Holden, for the families of the workers of Holden and for the communities which are home to Holden's major facilities in this country. There is no way that I can gloss over that, and there is no way that I should gloss over that.

But the people of this country—the people of our industrial centres—have been through hard times before, and they have come through hard times. They have flourished through hard times. When BHP withdrew from steel-making in Newcastle, many people thought that it was the end of an era—and, yes, it was the end of one era. It was the end of a grimy, industrial era for Newcastle. But it certainly was not the end of economic dynamism for Newcastle, which has gone from strength to strength in the decade or so since the announcement.

I accept that the economy of South Australia is fragile, and I accept that Adelaide in particular has suffered a series of knocks. It lost Mitsubishi just a few years ago, but it did come through. There is much that we can be hopeful and optimistic about in the resistance of the South Australian economy, particularly if government can do all that is necessary to see that the Olympic Dam mine expansion goes ahead.

So this is a dark day. But there will be better days ahead, and it is my determination and the determination of everyone in the government to work with the people of Australia—to work with the creative people of this country—to ensure that the great strengths of our society and the great strengths of our economy continue to be built on in the days and weeks and months ahead.

7:46 pm

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | | Hansard source

At least, on this difficult day and with this difficult announcement, I agree with one thing the Prime Minister has said: let us be candid and let us not mince words. Today it is not the government or Labor who has suffered an economic defeat; it is thousands of people who find that they have lost their jobs. This is not a day—nor, I think, is it an appropriate statement—to tell people that it will all end happily and that every car worker can move into bio-med. That is not what has happened today.

My concern is that the government, in its statement about the car industry, knows the price of everything and the value of nothing. This is a devastating announcement.

Government Members:

Government members interjecting

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | | Hansard source

Madam Speaker, I would hope that you would show—

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

Those on my right will not interject.

Government members interjecting

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | | Hansard source

Certainly in the last week I have not dared a company to sack people. Our thoughts are with the thousands of workers affected.

Government members interjecting

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

If members wish to hear the Leader of the Opposition, they will be silent.

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | | Hansard source

There are thousands of workers today who will go home. Their families—their kids and their husbands or wives—will say to them, 'What does this mean, Mum?' or 'What does this mean, Dad?' and 'What does this mean for your job?' The parents will have to say to them that they are going to lose their jobs. This is the worst part of this announcement today. As much as some here might wish to yell out and make political points—

Government members interjecting

There is something about a self-fulfilling prophecy there. Our hearts are concerned for the families who, before Christmas, found this out. The opposition is most upset for these families because we know that it is not the workers' fault that they have lost their jobs. At least let there be, in this parliament here, a truce on blaming the workforce for what has happened. These are skilled workers. It is not just direct employees at Holden, be they in South Australia

Mrs Griggs interjecting

I have no idea why the member for Solomon is shaking her head. We are talking about skilled workers who have lost their jobs, Madam. We are talking about people who will go home tonight to tell their families that they have lost their jobs—and it is not the fault of the people we are talking about. It is not just the direct employees of Holden; there are hundreds of component-manufacturing businesses throughout Victoria and South Australia who make products which go into these motor cars.

Frankly, the opposition is appalled by today's announcement. We are appalled when people say, 'This is not a political issue, but—by the way—we will not provide half a billion dollars in funding.' We are appalled when people say, 'This is not a political issue,' when it is clear that there have been divisions within the government on this question. We are also appalled that a major company, which has been building motor cars in this country since after the Second World War, has effectively been goaded into giving up on this country.

Opposition members interjecting

The government says—

Government members interjecting

Madam Speaker, I know they are the government. But I would like to see this House—

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

I think it is important to realise that, in this particular environment, when words like 'goaded' are used, you can expect a response. But the Leader of the Opposition has the call—and, if we are to hear him, we want silence.

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | | Hansard source

Yet again—and I have been away for three days—I thank Madam Speaker for her advice. I will not use the word goaded—encouraged to leave this country, is a better way to put it. There have been senior ministers backgrounding not against Holden but against thousands of jobs in this country.

Anyway, today some in the government have got what they wanted. There has been a game of high-stakes political poker played, and unfortunately the bluff was called—and the losers are thousands of Australian automotive workers and their families. Holden said very clearly yesterday that a decision had not been made. Something has changed in the past 24 hours.

Honourable members interjecting

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

We will have some order. We will have some silence, please. The Leader of the Opposition is speaking on indulgence; we will hear him.

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | | Hansard source

Something has changed in the past 24 hours. Holden were told by the federal government of Australia, who were elected to govern for all, that there would be no more support and no more investment—and I believe that Holden were pushed.

The priority right now must be on the workers and their families. The Prime Minister has returned. The Prime Minister must urgently step in to deal with the mess, the chaos and the disappointment which has occurred in his absence. Labor stands ready to support these workers in whichever way we can, but the opposition does not believe that today's announcement was an ordained conclusion. We do not believe that the announcement today was the only inevitable outcome of recent weeks. We do not accept it was inevitable that this car company would make the decision, after decades of investment in this country, that it would close its businesses by 2017.

There were some examples used about other car companies that have gone and the steel industry. When those announcements were made, there were still car companies in this country. When the steel industry—

Government members interjecting

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

I have said that, if the Leader of the Opposition is to be heard, we need silence.

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | | Hansard source

It did not have to come to this, nor was it inevitable. We understand that structural change happens in the Australian economy. What we do not understand is when the Australian government decides to sabotage its own industry. We believe—

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

The Leader of the Opposition will resume his seat. I call the honourable the Prime Minister.

Opposition members interjecting

We will have silence. I call the honourable the Prime Minister.

Mr Champion interjecting

If the member for Wakefield wishes to leave the chamber again, keep speaking.

Photo of Nick ChampionNick Champion (Wakefield, Australian Labor Party) Share this | | Hansard source

Fair enough.

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

Remove yourself under 94(a). A very slow learner.

The member for Wakefield then left the chamber.

Photo of Tony AbbottTony Abbott (Warringah, Liberal Party, Prime Minister) Share this | | Hansard source

Madam Speaker, I rise on a point of order. I am reluctant to do this, but the statement that the Leader of the Opposition has just made about sabotage was offensive and it should be withdrawn.

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

Indeed. The Leader of the Opposition will withdraw that statement.

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | | Hansard source

I withdraw. What we have seen is a government which will not back up car workers, small businesses or the automotive manufacturing industry in this country. On 11 August 2013, a coalition spokesperson, the absent Treasurer, said, 'The car industry much prefers our policy.' Yes, we have seen that work out, haven't we? All I would say now to the government is: work together with the opposition to save our manufacturing sector.

Honourable members interjecting

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

The call is with the Leader of the Opposition.

Photo of Bill ShortenBill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | | Hansard source

It has been said that this is a sad, bad day for the car industry. That is true. But, when it comes to the car industry, we have a sad, bad government.

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

The adjournment has been negated. We have had two speeches granted outside the normal provisions. We are now at the stage where we can return to the Fair Work (Registered Organisations) Amendment Bill, with the member for Lalor in continuum.

Photo of Anthony AlbaneseAnthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | | Hansard source

Madam Speaker, I rise on a point of clarification. It is the case that, when an adjournment is negated, the only business that should be dealt with is one item that is before the chair. With the Prime Minister's intervention, that was the item before the chair.

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

No, it was on indulgence.

Photo of Anthony AlbaneseAnthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Infrastructure and Transport) Share this | | Hansard source

It might be for the benefit of the House, in terms of not seeking to delay further. I am sure we can get this matter concluded prior to parliament rising, but, given the time of a couple of minutes to eight, by agreement—I am not suggesting that I would take any measures other than by agreement—we might conclude this tomorrow. If the member for Lalor is able to conclude tomorrow, the opposition is in a position to say we will then wrap up without any further speakers and just get it concluded tomorrow morning. It might suit the convenience of the House.

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

We are having a lot of indulgence at the moment, so we will have a little more indulgence for the Leader of the House.

Photo of Christopher PyneChristopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | | Hansard source

Madam Speaker, on the basis of the Acting Manager of Opposition Business in the House's statement to the parliament, if I understand him correctly, the member for Lalor would be entitled to complete her remarks tonight, because she only has two or three minutes left, and then in the morning I would sum up this bill and then we would vote on the member for Gorton's amendment—

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

She only has two minutes.

Photo of Christopher PyneChristopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | | Hansard source

She has a couple of minutes to conclude tonight if she wishes to, and she only has a couple of minutes on the clock. If I understand the arrangement correctly, tomorrow morning I would sum up, we would vote on the member for Gorton's amendment, then a vote on the bill if Labor continues to oppose it, and the third reading. On that basis, I am prepared to agree to that arrangement.

Photo of Mrs Bronwyn BishopMrs Bronwyn Bishop (Speaker) Share this | | Hansard source

I am sure we are all grateful for the interjection. However, the call goes to the member for Lalor. We will proceed to the adjournment on the conclusion of her remarks. The member for Lalor has the call.