MINISTER BILLSON:
Toyota’s decision is certainly shattering news for the many workers at Toyota assembly operations, but it’s also a really challenging time for the many suppliers, component manufactures, their workforce and manufacturing more generally.
These pressures that led to the Toyota decision haven’t arisen over night, they’ve been many years in the making and we as a nation need to think strategically about what we do with the manufacturing sector into the future.
The Government’s very optimistic about manufacturing’s future but it needs to be very much about high end manufacturing, where well paid jobs are producing excellent output, world class productivity and real value for those considering investing in those industries.
We are working systematically through those challenges. It’s important to remember that one manufacturing job was lost every 19 minutes under the previous Labor Government, so that trajectory needs to be arrested and turned around.
Particularly for the component industry, I see some bright signs. They’ve had to be world class for many years knowing that the vehicle assemblers could source components from overseas in their global supply chains.
The component industry has been nimble, it’s been very innovative, it’s been very productive and they’ve reached out beyond the shores of Australia to supply car assemblers internationally and diversify into other industries.
That’s why it’s important we think about the future of manufacturing. That’s why the taskforce led by our Prime Minister is very important about how to attract future investment, how to support our competitiveness, how to make sure that workers at Toyota go from a good job to another good job, and those looking for a future in manufacturing see that this is a good place to manufacture high value, sophisticated items where supply chains, technology, innovation is driving the future of that industry. That’s the challenge we all need to face up to as an industry.
JOURNALIST:
What kind of assistance will you be offering to the workers?
MINISTER BILLSON:
There is quite a comprehensive program of support for the workers. Toyota’s announcement sees a period of time out to 2017 within which those talented people can be supported in terms of finding other good jobs that make use of their skills and capacity. Also there is that work going on with the State Governments, particularly in Victoria and in South Australia, about what we can do in the regions that are affected. Also – trying to make sure that the economy more broadly is one that’s supportive of manufacturing. Getting costs out – like the carbon tax that just make the task so much more difficult. Getting the regulatory hurdles out of the road, so that this is a good place to invest and to innovate. For the workers, they are very much in our thoughts. Its tragic news, shattering news for them. Some period of time for transition – we look to work very cooperatively and collaboratively with the company, with the State Government of Victoria and in South Australia as it relates to the earlier announcements.
One thing I should say though is there’s been no request made of the Commonwealth Government that’s been rejected. We’ve put substantial resources on the table, provided many other measures within the realm of government policy to support the car industry. We will continue to be constructive and collaborative in this endeavour.
JOURNALIST:
We’ve heard a lot of platitude since the announcement yesterday, but no actual plan about how these new high manufacturing jobs are going to be created. So have you put some dollar figures on the table, some plans about training or anything like that?
MINISTER BILLSON:
Yeah there’s already $100 million that has been put on the table in terms of an immediate response but the worst thing we can do is to…
JOURNALIST:
So is there $100 million in immediate response to Toyota?
MINISTER BILLSON:
That’s the initial installment of that work and today there will be further discussions with the company. The State Premier of Victoria is coming to Canberra and that work will continue but another knee jerk reaction isn’t what’s needed. We need a thoughtful strategic response. There is a window of time that’s been made available by the announcement and continuing manufacturing operations. Another knee jerk reaction for a short term tactical response isn’t what the manufacturing industry and manufacturing workers need. They need a sober, adult, strategic response that recognises the strengths in our economy and in the manufacturing industry and how we can build on those for better jobs into the future.
JOURNALIST:
Toyota couldn’t even wait for the Productivity Commission to hand down its report so doesn’t that show that action is required sooner rather than later. Small businesses and component manufacturers don’t have that time to wait so perhaps not a knee jerk reaction but something in the next couple of weeks or months is that realistic?
MINISTER BILLSON:
Well there is already an immediate capability to respond to investment opportunities in the regions that are affected. It’s important to note that Toyota in making that announcement made it absolutely clear that there was nothing further that the government could do to turn around its decision. It has to make long term decisions.
We are up against other locations that manufacture vehicles – we need to be world class. There are factors within government policy control and you know even on the abolition of that hit on FBT on cars, a practical step to try and take one more challenge and pressure out of the car industry.
The carbon tax - $400 on each car, a cost that doesn’t need to be there and we’ve taken action to deal with that and that would have been dealt with had we got Labor’s support. So those immediate actions that we can take within our realm in terms of Government policy, actions being taken. Those broader factors that Toyota have pointed to are not all within our control and that’s why we need to build a competitive economy that innovates, that offers high paid jobs for high skilled performance and high productivity and that’s what the future for manufacturing needs to be in our country.
JOURNALIST:
You’ve got a Free Trade Agreement (FTA) with South Korea. In hindsight, was that negotiated with provisions in place to protect the car industry?
MINISTER BILLSON:
Well it’s interesting, those FTAs were about opening the opportunities for our component manufacturers – the very area where we are world class, where we see component manufactures having to confront the disciplines of being internationally competitive day in day out and that was going to open up some opportunities for our country.
JOURNALIST:
There are trade agreements with South Korea and one being negotiated with Japan – are they an issue with Toyota shutting down?
MINISTER BILLSON:
No
JOURNALIST:
They didn’t have any effect?
MINISTER BILLSON:
No Toyota has made it clear that there was no decision within the realm of the Government that could be taken to turn around its decision and there has been no request made for assistance that has been declined by the Government.