E&OE…
Topics: Ford, Attorney-General.
WALEED ALY:
Greg Hunt, who's the Minister for Industry, Innovation and Science, and he joins me in the studio now. Thank you very much for coming in.
GREG HUNT:
Good morning Waleed.
WALEED ALY:
Alright, so I'm an auto worker, I've been making cars for 20 years, this is my skill set. I work in car manufacturing, and next week I won't have that job anymore. What is, in specific terms, the next job that I walk into?
GREG HUNT:
Sure, let me give you an example, but first to acknowledge that tomorrow is a very difficult day for many workers and many families. I think we have to have a real focus.
Recently, for example, I visited two firms in the Geelong area, one at Lara, SNF, which makes chemicals. They have employed former auto workers; they're looking for people with those skills.
We are helping them to double the size of their production. They say that the skills that these auto workers have of working in a constructive environment, understanding manufacturing, understanding process are very valuable.
Another one is an interesting case of what could be an enormous Australian business, Carbon Revolution in Geelong, on the Deakin University campus.
They've taken carbon fibre, they've turned it into wheels, they're selling direct to Ford in the US, and these are some of the lightest, strongest carbon fibre wheels in the world. They've also employed former automotive manufacturing workers.
That's an example. That firm I think is likely to be at some stage, you know, potentially a billion dollar Australian company.
It's going through a massive expansion at the moment, it's winning major contracts, so in order to have these manufacturing jobs, we really need two things.
You need to be world class competitive, and you need to have an environment where you can bring those workers on, help them to adapt, and one of the things that we're doing as a Commonwealth government, frankly, in conjunction with the state, and we've worked well with Victoria on this, is to put in place a $155 million package to help build the new firms, to help support the component manufacturers and to train and transition the workers.
WALEED ALY:
So the new firms you're talking about, you're talking about new firms in manufacturing, or are you talking about a package that will help people transition to other kinds of work?
GREG HUNT:
No, both of those.
WALEED ALY:
Alright.
GREG HUNT:
So you have component makers who are looking to expand out their range of offerings, and then you have new firms such as Carbon Revolution or Sealite, which is not exactly new, on the Mornington Peninsula which is a manufacturing firm, is now arguably the world's best maker of navigation beacons and aviation beacons, selling to the US Defense Force, again manufacturing jobs and massive expansion.
WALEED ALY:
Right, but these are good stories, but the problem is the numbers, they just simply don't match. So if you look at something like Carbon Revolution, successive leaders, federal and state have gone to places like that and visited, spoke and talked this up, right?
But you're talking about numbers of jobs that are probably measured in the dozens. You're not talking, and we are talking about numbers of people that are now going to be facing unemployment that are measured in the tens of thousands.
GREG HUNT:
Look I agree this is a very significant issue, and that's why we've put $155 million in, but on the big side, let me look at a firm such as Dulux or a firm such as BlueScope. So BlueScope, I visited both their Port Kembla steel plant at Wollongong recently as well as the Hastings steel plant on Long Island, which is just three kilometres from my own office.
That was a firm which had a $300 million loss only a few years ago, they've now had a $300 million profit. They have enormous numbers of manufacturing jobs, they're beginning to employ additional people. So what that tells us is …
WALEED ALY:
How enormous?
GREG HUNT:
Well, when you look across the firm there are 5000 people that are employed in the making of steel, so the flat products, in particular things such as Zincalume and Colorbond…
WALEED ALY:
Right, but they've already employed, I mean they're not about to take on another 5000 people.
GREG HUNT:
No, no, but they are going through an expansion, so I need to be realistic about this …
WALEED ALY:
That's what I mean; it's kind of very bitsy, and I feel like there's a massive transition that's going on here towards a knowledge economy. It simply leaves the kinds of people who are working in manufacturing behind.
GREG HUNT:
Well these are the people that I am absolutely focused on in the sense that yes, it's about new firms, but in particular it's about old firms and helping workers who have been in manufacturing to either continue in manufacturing or to transition to new jobs, and in many cases that is deeply confronting. You can imagine …
WALEED ALY:
It is, we know it is from the survey, we know that.
GREG HUNT:
An older worker, they're wondering gosh, I'm 50 years old but I've got 15 more valuable years, am I going to be able to find a job?
So that's why we're specifically working with, and offering to work with each of those people.
We've got a program which runs not just for six or twelve or eighteen months but right out to the middle of 2018, as well as helping to encourage the new manufacturing jobs.
WALEED ALY:
So sorry, when you say you're working with each of those people, that's 40,000 people, up to 200,000 people, depending on who you believe.
GREG HUNT:
Let's be clear what happens this week.
WALEED ALY:
It's not about this week though, with respect.
GREG HUNT:
No, I understand.
WALEED ALY:
This is a transition that's taken place over years, this is something that has been coming for years, and now we get the first tangible expression of that this week.
GREG HUNT:
(Inaudible) It is in terms of the jobs, absolutely.
WALEED ALY:
Yes. But we're still not ready. There's still like you would ideally have a situation where people are going to walk out of Ford on Friday and walk into somewhere else on Monday, but that's clearly not going to happen.
GREG HUNT:
The places that I've been are cases where they are already employing workers.
WALEED ALY:
But we've said the numbers don't match, we acknowledge that.
GREG HUNT:
And then when you look over the coming years, firstly we have in place the $155 million program which is focusing on individual workers as well as the component makers, as well as the new jobs.
The second thing is there will continue to be a very significant car sector in Australia, each of Ford and Holden will keep global design centres in Melbourne and Toyota will have an ongoing design role but those…
WALEED ALY:
But that's part of the knowledge economy as well isn't it? I mean when you talk about designs…
GREG HUNT:
Quite interesting, a number of the workers within Ford are transitioning across, whether it's to the proving grounds, whether it's to the Broadmeadows Design and so there is quite a transition where they are taking workers with skills and they are internally retraining them so…
WALEED ALY:
Well how many welders are now going off and designing software for cars?
GREG HUNT:
Well it's not just the software…
WALEED ALY:
Well you know what I'm saying.
GREG HUNT:
You've got the whole process of the testing, of taking the automotive skills and moving them from one part to another, so there is a surprising number that are transitioning.
Then you have the component manufacturers, 19 of our Australian firms were moving to the global supply chain for Ford and another 63 are involved in the domestic aftermarket or parts for Ford and we want to expand that, we're going to meet with the global heads of Ford and GM and Toyota to build up that Australian role as part of the future industry.
Design, yes, but also the manufacturer of parts. We have to be part of what's the new model and that is globally sourced parts for manufacturing and we can be competitive in that space.
WALEED ALY:
So when all's said and done, if you look at these car manufacturing, these car manufacturers and you look at the jobs you're talking about that they might be able to preserve, how many people are not going to able to have access to that?
And will have to find work outside the companies that they're currently in?
GREG HUNT:
I'll leave it to the individual companies but what we do now know is that Ford will have approximately 1600 people involved in their processes in Australia, at the moment, it's just over 2400, a little bit more so they'll continue with about 1600 that are employed or contracted in one way or another, at the moment, just over 2400 is the latest figure, so that's…
WALEED ALY:
Right that's 800 people like that.
GREG HUNT:
Correct and that's a real loss and that's exactly why we've put in place a very major package and so the second thing is we have to be globally competitive, there's been about $7 billion which has gone to supporting the car industry from 2000 through to 2015 so an enormous amount.
Now the future of the car industry which is significant in design, two of the global centres for Ford and Holden will be here in Victoria, and a continuing role in design for Toyota and then the component makers for the international supply chain and then the component makers for the domestic aftermarket.
So there are significant job opportunities but individuals have their challenges and tomorrow will be a very sad day and that's why we're going to the world to say we can be part of these global supply chains, working with each of the firms and we've got a program to work with each of the workers to help them transition.
WALEED ALY:
Should George Brandis resign for misleading parliament?
GREG HUNT:
No look I understand he was elsewhere on ABC in the last hour and he pointed out that he had in fact met with the Solicitor-General I think on November 30th and there were two note takers present, not just one but two, so I think today's probably the day that Mark Dreyfus needs to apologise for making a complete goose of himself.
WALEED ALY:
Well we'll see, no one's denying the meeting took place but the Solicitor-General, who George Brandis says he consulted before making a decision to change the legal arrangements with getting advice from the Solicitor-General, that Solicitor-General has said he never consulted me about those changes, George Brandis told Parliament that…
GREG HUNT:
Well I think that George Brandis hit it out of the park this morning when he produced his material, he talked about the fact that there were two note takers present and as I say I suspect that today might be the day that Mark Dreyfus ought to apologise for just making a goose of himself.
WALEED ALY:
You know the Solicitor-General has produced ample documentation saying this is the way the conversation took place, then there was suddenly this order, it came completely out of the blue, he's showing documentation that suggests that he was not expecting…
GREG HUNT:
Okay I think that Senator Brandis has addressed it clearly, comprehensively and categorically just this morning on ABC.
WALEED ALY:
I could say absolutely anything and you're going to say he's dealt with it clearly and completely.
GREG HUNT:
No, no, no, no. That's the story this morning was categorically clear that if there were two people over and above present note takers then I think that is as comprehensive as it could possibly be.
WALEED ALY:
Greg Hunt, thank you very much for your time.
GREG HUNT:
Thanks Waleed.