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

My question is to the Prime Minister. How many times did the Prime Minister sit down and talk to Holden's senior executives to ask them what he could do to keep Holden and its jobs in Australia?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the Leader of the Opposition for his question because this is a very serious subject. As I have said before and will say again, these are sad times for everyone associated with Holden—the workers, the families of the workers and the communities where the major Holden installations are based.

As members on both sides of the chamber would know, governments of both persuasions have offered very considerable support to the motor industry over the years and certainly this government stood ready and stands ready to continue to offer very significant support to the motor industry. The difficulty is that, as the local MD of Holden, Mike Devereux, made clear on radio today, Holden's difficulties have been building up over many, many years. The truth is, as the Holden spokesman said publicly yesterday, 'It would be wrong to simply attribute their departure—

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Madam Speaker, on the issue of direct relevance: there was no prelude to the question at all. It was specifically on how many meetings.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The question was concerning the closure of Holden. I call the Prime Minister.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

As the spokesman for Holden said yesterday, 'It would be wrong to simply attribute it'—that is to say, this impending closure—'to action or inaction on the part of the government.' So there we have it: 'It would be simply wrong to attribute it to action or inaction on the part of the government.' I am not seeking to play the blame game here, I am not seeking to play politics here and I think it would raise the reputation of the Leader of the Opposition if he did likewise. I had several meetings with the motor industry as Leader of the Opposition, including with Mr Devereux, and since the election there have been regular meetings between the Minister for Industry and the Holden company.

Andrew Southcott (Boothby, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. What action is the government taking in response to the decision of General Motors in Detroit to discontinue manufacturing in Australia by 2017? How will the government ensure Australian industry is competitive, innovative and successful?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I do thank the member for Boothby for his question. I appreciate that the future of the motor industry is something that he has been grappling with as a local member and as a member of the coalition for several years. This is a sad time for Holden workers, their families and their communities. I want to make it very clear to Holden workers and to the people of Australia that the difficulties which Holden is now encountering is no reflection on Holden workers, who are good workers, who have worked well, and it is no reflection on this country. What Holden announced yesterday is part of a worldwide reorganisation and, amongst other things, involves the closure of plants in Korea and the withdrawal of the Chevrolet brand from Europe. It was, as the managing director of Holden Australia has made clear, a perfect storm. It has been building up for a long time—

Ms MacTiernan interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

Order! The member for Perth will desist.

Mr Champion interjecting—

Order! The member for Wakefield is warned!

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

It has been building as a result of Australia's high dollar, high costs and low volumes. At a time like this, we need to be conscious of the limitations of government, as well as of the government's potential. The then government was unable to prevent the departure from Australia of Mitsubishi in 2008. The then government was unable to prevent the imminent closure of Ford, in 2016, when this matter came before it some time ago. The then government, in March last year, believed that it had secured the future of Holden for a decade. But, despite the investment by the then government, of an additional $275 million, the future of Holden was not secured.

Our job now is to build on our fundamental strengths. It is not to play politics, it is not to indulge in the blame game and it is not to peddle false hope. That is why, in coming days, the government will announce new measures that focus on the strengths of the regions most impacted by Holden's departure in 2017, because there are great strengths in these regions—strengths in export education, R&D and niche manufacturing. We will not let these people down. But our challenge is to get them from one job to another job and we will not fail.

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

Can the Prime Minister confirm that he had no meetings with Holden as Prime Minister?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I can confirm that the government has been dealing constantly with Holden, absolutely constantly.

Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Education, representing the Minister for Employment. I know the minister appreciates that the decision of General Motors in Detroit to close operations in Australia by 2017 could have a significant impact on employment in our home state of South Australia. It is important, though, that we plan for today and tomorrow. I ask the minister: what action is the government taking to ensure the Australian economy is focused on growth and jobs?

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

I thank the member for Grey for his question regarding this very important issue. I note that he, as a fellow South Australian, recognises that South Australians are not interested in the doom and gloom being preached by the opposition on this issue. Nor are they interested in the political pointscoring being taken by the Premier of South Australia, Jay Weatherill, who has been in government for 12 years in that state and has made no effort to diversify the economy.

Only three months ago the South Australian public elected a new government, full of promise, with a positive attitude about the future. Of course, while they are disappointed about the decision that General Motors made in Detroit, they are well aware that that decision could have been coming for some time.

Opposition Members:

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Parramatta will desist.

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

Under the previous government, they sat there and watched what happened to Mitsubishi.

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Melbourne Ports.

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

And they watched what happened to Ford.

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Melbourne Ports is warned!

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

And they know that when the head of General Motors 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.

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

Order! The honourable member for Wakefield has been warned. He will remove himself from the chamber under standing order 94(a).

The member for Wakefield then left the chamber.

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

When they hear the head of General Motors say that, they know it is true. But they also expect the government to have a positive, energetic, enthusiastic attitude to the future of South Australia and the job prospects in our state. This government is getting on with the job of putting into place exactly those policies that will guarantee jobs for the future in South Australia. We are introducing policies like one-stop shops for environmental approvals, scrapping the carbon tax and the Minerals Resource Rent Tax—the job-destroying taxes.

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Kingsford Smith.

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

We are scrapping Labor's plans for a $1.8 billion tax on fringe benefits, which would hurt the car industry. We are reducing red tape and regulation in the higher education sector. Most importantly, we are improving productivity in states like South Australia through transport infrastructure—the North-South Corridor.

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Port Adelaide.

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

We are putting in place the kind of stable decision-making for government that gives companies like BHP Billiton the confidence to re-examine increasing expansion of the Olympic Dam mine in South Australia.

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Charlton.

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

Under the previous government companies like BHP Billiton made decisions not to go ahead with mines like Olympic Dam, because they could not rely on the government of the day to keep policies from one moment to the next.

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Kingston is warned.

Christopher Pyne (Sturt, Liberal Party, Minister for Education) Share this | Link to this | Hansard source

This government is putting in place the foundations that will give South Australians long-term job stability, and I am pleased to be part of it.

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

My question is to the Prime Minister. The managing director of Holden has confirmed that the federal government was presented with a business case by Holden outlining what was needed to save Holden jobs. Why did the government ignore the business case and persist with its half a billion cut to auto industry assistance and Australian jobs?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

We did not ignore the business case.

Opposition Members:

Opposition members interjecting—

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

If members opposite are such geniuses when it comes to saving car companies, what happened to Ford and what happened to Mitsubishi? I am not in the business of playing politics here but, if members opposite are, I pose this question to them: if it is so easy to keep companies in this country, what happened to Ford, what happened to Mitsubishi and what happened to the $275 million former Prime Minister Gillard said had saved Holden?

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Port Adelaide.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

What happened to the promise that Julia Gillard had saved Holden with $275 million of taxpayers' money?

Honourable members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The Prime Minister will resume his seat. There will be silence on both sides of the House. We do not need to have those interchanges. The Prime Minister has the call.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The truth, as the Holden spokesman said publicly yesterday:

It would be wrong to attribute the decision to government action or inaction.

Yes, there are good things that government can do, and we will do the good things that can be done to help manufacturing in this country.

To follow up on the excellent answer from the Leader of the House a few moments ago, he talked about consistency and stability in government decision making. I refer members opposite to Senator Kim Carr, the former industry minister, who said in his book, when he was being truthful—

An opposition member interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Kingsford Smith is warned!

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Madam Speaker, I rise on a point of order. We are going a very long way away from direct relevance now. The Prime Minister has had to refer to an answer from another minister to try to make it relevant to question time, let alone to what he was asked.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

There is no point of order. I call the Prime Minister.

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I was asked what government has been doing for the car industry. Let me quote Senator Kim Carr: 'International company executives wondered just what they had to do to get a consistent government policy commitment in Australia under the Labor government.' This is when Kim Carr was the minister for industry.