E&OE….
Topics: Great Barrier Reef, automotive industry, superannuation
TOM ELLIOTT:
The Federal Environment Minister Greg Hunt joins us now. Mr Hunt, good afternoon.
GREG HUNT:
G’day Tom, how are you?
TOM ELLIOTT:
Good, thank you. Now, what are you doing in Japan?
GREG HUNT:
Look, really three things. The first is climate change co-operation. There’s a major conference at the end of the year trying to set the time frames, tasks, responsibilities, directions for the world for the next decade beyond 2020 and indeed two and three decade energy efficiency co-operation.
And in particular, a focus on the massive transformation that has happened in the last twelve months in the way we deal with the Great Barrier Reef and that’s the ending of 100 years of practice of disposing dredge material in the Marine Park. There’s $2 billion of investment, legislation to protect some of the great marine mammals and water quality protection and there’s been a…
TOM ELLIOTT:
Now, but I…
GREG HUNT:
…really positive response to that.
TOM ELLIOTT:
I heard, Mr Hunt, that in fact the status of the Great Barrier Reef was going to be downgraded by I think it was UNESCO and that what you have to do is convince other countries that no, it’s still in good shape and that therefore it should stay as a site of great natural wonder or something?
GREG HUNT:
So we inherited a proposal which had been in the works for three years when we came into Government. The reef had been put under review, largely because of what had happened in Gladstone with some of the LNG projects under Labor and because of the five major dredge-disposal projects which had been developed under the previous Government for deposits in the Marine Park, which, of course, is an area the size of Italy or Germany.
We have ended all of those and that’s had a tremendous response internationally. A very positive response from UNESCO. This will be determined in June in Germany at a major international conference there, but we are talking with countries, absolutely. That’s my job and my duty. But most importantly we’ve made once-in-a-century changes and you see that there’s an improvement in water quality, an 11% reduction in sediment, a 16% reduction in nitrogen, a 28% reduction in pesticide.
Things that really matter. The ending of the dredge proposals from Labor, the world has responded very positively. And then the commitment that I’ve made to ban forever the placement of what’s called capital dredge material in the Great Barrier Reef Marine Park. So these things have had a very positive response worldwide.
TOM ELLIOTT:
Alright. So the reef’s in good shape. Now a couple of other issues. What about the car industry? We know that Ford, Holden, and Toyota by 2016/2017 they’re all going to pull their operations in Australia. No more Australian-made cars.
Why are we still spending hundreds of millions of dollars subsidising them and why is Industry Minister Ian Macfarlane, why does he seem determined to actually increase this amount given that the industry will definitely close in two years?
GREG HUNT:
Look, I think the main thing here is to ensure that there’s continuity for the components manufacturers, and so I’ll let, obviously, Ian Macfarlane and the Treasurer talk about any specific figures, but the big purpose here is to ensure that our specialised manufacturing base and our component manufacturing capability is able to continue to adapt, to retool, to retrain and that wherever possible that has an ongoing, permanent manufacturing role.
It’s especially important for Victoria and in particular for Melbourne, many components manufacturing firms, and these have the capacity to be world-class material and manufacturing producers…
TOM ELLIOTT:
But wait, wait, wait – but okay. Okay, but I mean, did we honestly think that all these firms that essentially service the local car industry – did we honestly think that they have this great, bright future once the industry shuts down?
GREG HUNT:
Look, I (audio cuts).
TOM ELLIOTT:
We’ve lost Mr Hunt there. We’ll see if we can get him back on the line. 96900693. Calls as well. 13 13 32. It’s 18 to 4.
Intermission
TOM ELLIOTT:
The Federal Environment Minister, Greg Hunt, is back with us.
Mr Hunt, we were talking about component suppliers here in Australia, and you were saying that the so-called automotive transition scheme, where we could spend up to $900 million, is all about securing some sort of future for them but, in all honesty, do they have a future when we stop making cars in this country?
GREG HUNT:
Look I believe they do. I’m not one who is in any way, shape, or form willing to raise the white flag. I know from having dealt with metals firms in Hastings, in my own electorate, who have not been directly involved in the automotive side though, I’ve seen them re-tool, re-kit, re-calibrate, prepare for new lines of business. You’ve got very creative people, and what they need to do is to be given the opportunity of a soft landing, the pathway to transition. You see it around the world.
TOM ELLIOTT:
But can I ask this, why is that? I mean, for example the industry I’m involved in, media, or in particular radio, like is also going through dramatic change. Like, I don’t know in five years whether free-to-air television will exist, they might stop printing newspapers, the radio business as we’re in it might find life very difficult.
I mean, I don’t imagine that the Federal Government will be waving hundreds of millions of dollars at us to keep us going. Why is it different for people who bash metal for a living?
GREG HUNT:
Look I think the important thing here is to allow for a smooth transition. And if you can ensure that firms which have a genuine bright future, if they are given an opportunity when factors beyond their control have intervened, then I think that’s reasonable. Now…
TOM ELLIOTT:
But I mean, things- you say factors beyond their control, I mean I- we could- we didn’t know that-
GREG HUNT:
… the final figure will be considerably less than you’ve mentioned there, but it’ll depend on the number of vehicles that are actually (inaudible).
TOM ELLIOTT:
Yeah I know, but it just seems to me we have a love affair with vehicles and with the things that go into making vehicles. But I mean, plenty of other industries go by the wayside every day, and the Government doesn’t come and give us money.
I’m just wondering- I understood this from a Labor Government, they’ll pick the industries where there are big unions and big factories, but I’m sort of surprised it’s continuing under a Liberal Government.
GREG HUNT:
Look, our approach here is to recognise that this is a major shock for Victoria. If you are losing Ford and Holden and Toyota, that is a big change in the landscape. And when you have such an impact, then if you can assist in the transition in a way which is reasonable and moderate, and which allows the evolution to new manufacturing, then I think that’s acceptable.
I can understand there are those who would say there should be no funding whatsoever, but part of the task here is not to prop up unsustainable firms and I agree with that absolutely. But where there is a transitionary path and there have been external shocks in the form of the loss of the three major car manufacturers – that’s what’s looming – then I think if we can assist the whole of the Victorian economy against a major, major event, I think that’s reasonable, prudent and appropriate.
TOM ELLIOTT:
Alright. Well we’ll see how those firms go post-2017.
Now before I let you go, Joe Hockey has come up with this idea, and I think he’s got it from either Canada or Singapore, or possibly both, this idea of allowing homebuyers to access some or all of their super funds to put down a deposit on a first home. Now I think it’s a silly idea, because you’ll just pump up the price of houses and then people won’t have any superannuation left, but I mean is it being seriously debated within the party?
GREG HUNT:
Look, it’s not a proposal that I’m aware of that has currency within the Party Room or the Cabinet. But it is reasonable always to try to look at new ideas. There are some places around the world which have adopted a variation of that type of use of superannuation funds.
At the end of the day there are two things we want to achieve: one is to secure the national finances over the course of a generation so as we’re not stealing from the next generation; the second is to, wherever possible, assist and give young people the best chance at leading a life where they can own their own home in the meantime. It’s not a proposal that we had, but it is reasonable that if there are people proposing it, we listen to it.
TOM ELLIOTT:
Well, it’s the Treasurer of the Government that you serve, so I guess you will be listening to it.
Greg Hunt, thank you very much for your time.
GREG HUNT:
Thanks Tom.
TOM ELLIOTT:
Greg Hunt, the Federal Environment Minister there.
(ENDS)