House debates

Wednesday, 11 December 2013

Questions without Notice

Automotive Industry

2:40 pm

Photo of Louise MarkusLouise Markus (Macquarie, Liberal Party) Share this | | Hansard source

My question is to the Treasurer. Will the Treasurer outline the challenges the government faces in managing the Commonwealth's budget? What are the impediments to addressing the situation the government inherited?

2:41 pm

Photo of Joe HockeyJoe Hockey (North Sydney, Liberal Party, Treasurer) Share this | | Hansard source

I thank the member for Macquarie for her question. The challenges we face in relation to the budget are obvious, given the fact that we now have $20 billion of savings—$5 billion of the $20 billion was actually announced by Labor—that are held up and blocked in the Senate by the Labor Party and the Greens. Of course, the Australian economy is facing challenges. That is what we have inherited from Labor.

The challenges identified by the chairman and CEO, Dan Akerson, today in Detroit are the same challenges that many other manufacturers and businesses in Australia are facing. I quote the CEO of General Motors Holden in Detroit. He says:

The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.

He says that and he is right: it is a challenging market in which to operate. And it is a market that has been heavily subsidised by Australian governments—in the case of Holden, $1.8 billion between 2001 and 2012. But, if money were the issue as to why Holden is leaving Australia, then why did Ford leave and Mitsubishi leave whilst Labor was in government? The money was flowing, but they decided to leave.

One of the things that needs to be noted is the high cost of production. I say emphatically to the workers at Toyota, who are due to make a decision this Friday about a proposal put to them by the management of Toyota: please vote for your jobs this Friday. The AMWU is recommending a vote against a proposal put forward by Toyota to try and have a fairer arrangement in the workplace. For example, Toyota exports 70 per cent of its produce to the Middle East. At the moment, Toyota has to close its plant for 21 days over Christmas. How does that work when you are trying to export to the Middle East, where they do not celebrate Christmas? And now Toyota has gone back to the workers and said, 'Please reduce this to 10 days so that we can have consistent supply,' and the AMWU is recommending a vote against it. The AMWU would not even meet with Toyota management, because the AMWU wanted to have 53 people turn up—

Ms Kate Ellis interjecting

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

The member for Adelaide is warned!

Photo of Joe HockeyJoe Hockey (North Sydney, Liberal Party, Treasurer) Share this | | Hansard source

to a meeting with Toyota management in order to negotiate the deal. So the destiny of other manufacturers in Australia is inevitably in all the hands of all the stakeholders, including in particular the union leaders.

2:44 pm

Photo of Brendan O'ConnorBrendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

My question is to the Assistant Minister for Employment. Can the minister advise what assistance will be made available to workers who lose their job as a result of the government leaving Holden with no choice but to leave Australia?

Photo of Luke HartsuykerLuke Hartsuyker (Cowper, National Party, Assistant Minister for Employment) Share this | | Hansard source

I thank the member for his question. This is a very important issue that confronts us, ensuring that we have competitive industries in this country. It seems passing strange that the member can feign support for these workers at a time when the opposition are standing in the way of this government making Australia a more competitive place, because that is the key to ensuring the future of jobs, ensuring that we have a competitive economy that is in fact operating at a world-class level. So rather than the assistance of the members opposite, we have the gaggle opposite just standing there and moaning rather than getting behind the abolition of the carbon tax, the abolition of the mining tax and the government improving the efficiency of this economy.

But with regard to the matters that the member raises specifically, I would say that any worker made redundant in the automotive manufacturing industry will receive immediate access to intensive employment assistance support through the Automotive Industry Structural Adjustment Program. This program is delivered by Job Services Australia and provides support for job seekers at a stream 3 level. That is support. But the best way that we can ensure the future of these workers is to make the Australian economy as competitive as it can be. So it is about time members opposite got out of the way of this government and allowed us to make Australia the efficient economy that it should be.

2:46 pm

Photo of Matt WilliamsMatt Williams (Hindmarsh, Liberal Party) Share this | | Hansard source

My question is to the Minister for Education, representing the Minister for Employment. What will the impact of General Motors' decision, in Detroit, to close the operations in Australia by 2017 be on employment?

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

I thank the member for Hindmarsh for his question. As a senior South Australian in the parliament and as the Minister for Education representing the Minister for Employment, can I say that it is a very sad day for South Australia that this announcement has been made by General Motors in Detroit. Nobody should be making light or politics about this decision. This is a decision that affects thousands and thousands of South Australians and Victorians. It is a tragic situation that Australia is in the position that it is. It is the kind of country that makes it very difficult, very difficult to manufacture such high-end products as motor vehicles because of our labour costs; because of the way that we do business in this country; because of our high Australian dollar; because of our lack of export markets, particularly for Holden; and because of decisions that have been made beyond our shores that we have had very little, if any, control over. South Australians have been well aware of this for a long time. South Australians understand how important the car industry is to our state, but they also understand how fragile it has been for a very long time. This government, as the previous government did, tried to keep those operations in South Australia and Victoria because we always put people first—never ideology, always people. The Deputy Prime Minister has outlined very well the difficulties that Holden and other car manufacturers have faced. Mitsubishi faced these difficulties and Mitsubishi closed. It does not matter on whose watch it closed, Mitsubishi closed.

Mr Marles interjecting

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

Order! The member for Corio is warned!

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

Ford faced these problems and Ford closed.

Mr Marles interjecting

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

The member for Corio is warned!

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

Again, it does not matter on whose watch Ford closed—Ford closed. Holden is closing in 2017. So this is not a day—

Opposition members interjecting

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

Order! The member for Corio will remove himself under 94(a), as will the member for Adelaide.

The member for Corio and the member for Adelaide then left the chamber.

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

for political point scoring. It is a day to think about the workers and families of South Australia and Melbourne who will be affected by this decision. This government stands ready to do everything in its power to support the employment of workers in Victoria and South Australia. We will announce over the coming months and years ways to ensure that we can—

Opposition members interjecting

Well, that is right, because it is closing in 2017—ways to support the workers and their families in South Australia. I just quote the statement:

The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world …

2:49 pm

Photo of Brendan O'ConnorBrendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

My question is to the Acting Prime Minister. I refer to Holden's announcement today that it will discontinue vehicle manufacturing in Australia by the end of 2017. What does the Acting PM say to the 1,600 Holden workers in South Australia and 1,300 workers in Victoria who will lose their jobs as a result of the government's complacency and to workers in the autoindustry across Australia whose jobs, of course, are now in jeopardy?

2:50 pm

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

That question is entirely out of order. It makes insinuations about the thinking of the government, it is full of argument, it is hypothetical and the opposition must try to get their questions within the standing orders.

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | | Hansard source

Madam Speaker, I rise on a point of order: the matters raised in that question are a direct reflection of what happened in question time yesterday.

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

That is not a proper point of order. The question is asked by the member for Gorton. I will give him the opportunity to rephrase it. He will leave out the argumentative part of it.

Photo of Brendan O'ConnorBrendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

Thank you, Madam Speaker. I am happy to rephrase the question. I direct the question to the Acting Prime Minister. I refer to the announcement by Holden today that it will be discontinuing vehicle manufacturing in Australia by 2017. What does the Acting Prime Minister say to the 1,600 Holden workers in South Australia and the 1,300 workers in Victoria who will lose their jobs as a result of the government's inaction to deal with this very important issue?

2:51 pm

Photo of Warren TrussWarren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | | Hansard source

The question indeed contains a great deal of argument which I would dispute. The reality is that this government has taken substantial steps in the short time it has been in office to actually improve the environment for the manufacturing industry in Australia and, in particular, for the car-manufacturing sector. It is unfortunate that I have to report to the House that it is well known to everybody who has been observing what has happened in the parliament over the last few weeks that the opposition, who, today are feigning concern about the fate of the industry—

Photo of Tanya PlibersekTanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | | Hansard source

Madam Speaker, I raise a point of order. I take deep personal offence at the suggestion—

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

I am sorry, there is no point of order.

Photo of Tanya PlibersekTanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | | Hansard source

I am asking for a withdrawal.

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

The Deputy Leader of the Opposition will resume her seat. I said: the deputy leader will resume her seat. There is no point of order.

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | | Hansard source

Madam Speaker, on a point of order: under standing order 90, a deeply serious reflection has just been made on members. It should be withdrawn.

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

Yesterday I ruled on that point of order. The ruling is the same: that if there is a reflection on a particular member, then the standing order is infringed; if it is general, it is not. That is a consistent ruling in this place.

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | | Hansard source

Madam Speaker, if you are ruling that, so long as they are offending more than one of us at a time, it is okay—

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

That is a constant ruling that is made in this place.

Photo of Warren TrussWarren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | | Hansard source

I do not wish to, in any way, downplay the concern that members opposite feel on this occasion, but please do not impugn our motives either. We have worked constructively to try and provide a better environment for the car industry in this country. You have had the opportunity to indicate support and to take a significant cost, around $400 a vehicle, off that industry by supporting us in our endeavours to get rid of the carbon tax. You would not have sought to put a significant tax on fringe benefits, had you been really concerned—

Photo of Tanya PlibersekTanya Plibersek (Sydney, Australian Labor Party, Deputy Leader of the Opposition) Share this | | Hansard source

Madam Speaker, I raise a point of order. The Acting Prime Minister continues to use a figure that is wrong. He knows it is wrong.

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

That is not a point of order; it is an argument, and that is in the wrong place.

Photo of Warren TrussWarren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | | Hansard source

So I take offence at the way in which the opposition is seeking to imply some kind of ill intent on this side towards the car industry which we as Australians admire, and for which we as Australians have worked together and are determined to do what we can to make it a better industry for our nation as a whole.

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

Does the member wish to raise a point of order?

Photo of Brendan O'ConnorBrendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

Madam Speaker, I seek leave to move the following motion.

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

I am sorry, you cannot do it while the minister is on his feet.

Photo of Brendan O'ConnorBrendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

I can seek leave to move the following motion, and I am seeking leave, and the motion is—

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

You can only rise on a point of order while the minister is speaking.

Photo of Brendan O'ConnorBrendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

I am seeking leave to move the following—

Mr Pyne interjecting

Yes, you can do that. You have done that. You did it, Chris. You've always done it.

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

I will hear the Leader of the House.

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

Madam Speaker, on a point of order: we perfectly understand if the opposition want to move a motion or seek leave, but the correct course in which to do so is between two items of business—

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

and if they would read the standing orders, they would know that and they could calm down. When the Acting Prime Minister resumes his seat then they will be entitled to seek the call.

Photo of Mr Tony BurkeMr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | | Hansard source

Madam Speaker, on the point of order: there have been a number of occasions—and I have raised them previously directly with you—when the Leader of the House has risen, claiming it was a point of order, and then moved that the member be no longer heard. I have raised it with you, and you have told me that it was in order.

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

Madam Speaker, on the same point of order: moving that a member be no longer heard is a procedural resolution that can be moved at any time. Seeking leave to move a motion is not a procedural motion—

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

and therefore has to be between two items of business.

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

The Leader of the House is correct.

Photo of Brendan O'ConnorBrendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

Madam Speaker—

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

The member for Gorton will resume his seat.

Photo of Brendan O'ConnorBrendan O'Connor (Gorton, Australian Labor Party, Shadow Minister for Employment and Workplace Relations) Share this | | Hansard source

Madam Speaker—

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

The member for Gorton will resume his seat! The member will resume his seat! The Acting Prime Minister was still continuing his answer. He has the call.

Photo of Warren TrussWarren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | | Hansard source

In addition to the matters and the initiatives that I have mentioned earlier, let us never forget that there is still more than $1 billion in the Automotive Transformation Scheme which has not been allocated. So there is significant funding there, still available, to assist the automotive industry in this country. So suggestions that reductions of $500 million, or whatever it might be at some stage in the future, have made any impact in relation to the industry at this time are clearly nonsense. There is substantial funding still available.

It may be forgotten that the original question was actually about the welfare of the workers, and let me assure you that we share those concerns. As I said earlier, we will be working with the South Australian government and the industry itself and all other interested parties to try and find new workplace opportunities, and we call on the opposition to work with us constructively to create the kind of environment in this country which encourages manufacturers and supports those who invest in this country.

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

Now the member for Gorton has the call.