Ms
TIERNEY (Western Victoria) — My question is for the Minister for Industry
and Trade, Martin Pakula. Can the minister outline to the house how the Brumby
Labor government is taking action to secure jobs in the automotive sector and in
particular in the Geelong region?
Hon.
M. P. PAKULA (Minister for Industry and Trade) — I thank Ms Tierney for her
question. In doing so I acknowledge her longstanding interest in the automotive
sector generally and her particular interest in its future in Geelong.
Automotive manufacturing, as I have said in this place a number of times, is
vital for Victoria’s industry capability. It is an industry which generates
about $3 billion annually in exports and employs about 34 000 people. I am very
pleased to be able to inform the house that in the last half hour I have been
advised that an in-principle agreement has been
reached between the MH group and CSR Viridian for the sale of
the Geelong automotive glass manufacturing facility from CSR to MHG and for its
continued operation. It is important to acknowledge that rumours of the death of
the automotive glass industry in this state have been premature. This is an
investment which has been facilitated in part by the Brumby Labor government and
our federal counterparts in Canberra. At least 60 jobs will be preserved
directly at the facility, but more importantly the future of automotive glass
manufacturing in this country has been secured.
In some respects this is about much more than 60 jobs in
Geelong. One of the things that swung everybody into action when the premature
announcement of the closure of this facility was made early this year was the
fact that it is the last remaining automotive glass facility in the country. Had
it closed we would have been in a parlous situation, because Toyota indicated to
us that no other Toyota manufacturing facility in the world needs to import its
windscreens.
As a result of that advice a task force was
put together very quickly. It involved my department, representatives of my
office, representatives of the federal industry minister’s office and his
department, the federated furnishing trade union, which covers the workers at
the site, and the City of Greater Geelong. Great interest was also shown by the
federal member for Corio, Richard Marles, as well as a number of local members
and Toyota.
First of all enormous effort had to be put in to ensure that
the site was not sold, which would have closed the door on keeping this facility
operational. I put on the record my appreciation to CSR Viridian for its
cooperation in seeking to enable everybody to do the work that needed to be done
to find a buyer that would keep this company operating as an automotive glass
manufacturing facility. The project involves the MH group taking over. That will
be the case, subject to the in-principle agreement being formalised — hopefully
later today.
It will take over and restructure the CSR Viridian automotive
glass manufacturing plants in Geelong and Laverton that were earmarked for
closure and consolidate operations at Geelong. The new venture will be known as
Australian Automotive Glass. The company that will be operating it, MH group,
currently supplies plastic components to Toyota Australia from its manufacturing
operation in Melton. The operation will be configured to ensure the ongoing
viability of the operation. In periods of low production volume the
configuration will change, but production will be scaled up to take advantage of
new opportunities. The new owner has indicated that it has plans to expand the
operation.
We as a government are absolutely delighted to have been able
to play a role in saving a core automotive facility. The task force that we
formed played a major role in addressing the issue and providing key strategic
assistance. As I have said, this will ensure the continuation of our only
automotive glass manufacturing capability.
It will secure 60 jobs in the immediate future and hopefully
many hundreds more in the future.
As I have said, this has been facilitated through the joint
efforts of the Victorian and federal governments, through Toyota Australia and
through the City of Greater Geelong. I would like to take this opportunity to
pay particular tribute to the efforts of a number of people who I believe made
this possible: the Department of Innovation, Industry and Regional Development
and in particular David Wright of the automotive division, the federal member
for Corio, Mr Marles, and state representatives John Eren, Ian Trezise and Gayle
Tierney. I also thank federal industry minister Senator Carr, the federated
furnishing trades union and the teams at both CSR Viridian and the MH group.
This extremely positive result for our automotive industry is
the result of strong teamwork, strong cooperation and an eye to the future from
all of the parties involved. It also is a tribute to the development of an
innovative and flexible business model which optimises both the support and the
technological involvement of Toyota. As the major customer of this facility,
Toyota Australia will be providing very strong technological support. That will
result in new products being put through the facility, including advanced
interlay technology for windscreens that will be introduced early next year into
the new hybrid Camry.
Funding to facilitate this fantastic announcement has been
delivered through the federal government’s automotive industry structural
adjustment program and also through our own Industry Transition Fund.
The Brumby Labor government’s $6.7 million Victorian automotive
manufacturing action plan is going to continue to help the sector create new
opportunities — new sources of investment to get them through the current
challenges. This is just one shining example of our commitment to continue to
protect Victorian jobs and to assist our very important automotive industry.