Carsales Staff•19 Sept 2013
NEWS
MacFarlane opens talks with Holden
Incoming industry minister adopts conciliatory line with manufacturers, unionsIan MacFarlane has returned to his old stomping ground, accepting the role of industry minister in the newly-elected Abbott government.
And it hasn't taken him long to outline in the media his commitment to work with the automotive manufacturing industry for a viable and sustainable future.
On the ABC's AM program this morning, MacFarlane told interviewer Sabra Lane that he planned to meet with Holden MD Mike Devereux next week to discuss plans for future co-investment. The minister was responding to the interviewer's remarks that Jay Weatherill, South Australian premier, says Holden needs an answer from government no later than two months prior to Christmas.
"We want to get the industry on an even keel," MacFarlane replied. "I'm a huge fan of the Australian car industry. The first text I sent after the announcement as Minister was to Mike Devereux to say I want to come down and have a look at [the Elizabeth manufacturing] plant."
Both state government and opposition will get a look-in at the plant, as will federal independent senator, Nick Xenophon, according to MacFarlane.
"Nick's a great representative of South Australia. He got a very strong showing at the last election. You can't argue with democracy. And I know Nick from discussions I had when I was negotiating a few things in Opposition. He's a straight guy and he really believes in South Australia."
The minister claimed that he will be unstinting in his support for the industry – a stand that comes from his own personal interest.
"I'm the Minister for Industry. I want to see industry happen. I wear a hat that Peter Brock personally signed for me which is very special to me. It's a Holden hat that he signed for me. Unfortunately he has since passed away, but that hat and the industry that goes with it is very special to me."
But when it came to policy, the enthusiast turned pragmatic. While he praised the unions involved in recent EBA negotiations with Holden for their "responsible approach", he made it perfectly clear that all parties needed to remain committed to the cause.
"We are happy to have people there who want to be constructive. If people want to play politics then I'll just walk away and let them squabble amongst themselves, but if everyone wants to be flexible, I'll be flexible.
"I haven't got a pocket full of money. I thought they'd still have a bit of the $4.3 billion left that I gave them last time but let's see what it is. I'm not able to say what will happen until I actually get down there and have a look – and that's why I'm going."
When asked about the $500 million subsidy the government had reportedly been prepared to withdraw from the industry while still in opposition, MacFarlane turned the issue back on the local manufacturers – including Holden.
"Seriously, there are massive more issues than the $500 million.
"I put it in on the basis they produced a car that... Australians want to buy. The reality is that Australians aren't buying that car, that 80 per cent of Australians now buy imported cars as their private vehicles.
"So they've got to build a car that Australians want to buy and Mike's aware of this. I know he's got something up his sleeve."
According to MacFarlane, Holden needs to get back to building 100,000 cars a year – and coordinating that effort with Toyota.
"When I first became minister last time, each of them [was] building 100,000 cars so it would be great to get back to that, but one step at a time."
MacFarlane's reluctance to talk about financial assistance for the industry is understandable in light of election promises to return the nation's budget to surplus.
"If there's money required, look, as I say my pockets are a bit empty at the moment. I want to see where all the money's gone first. But if it's an issue of getting in there, giving Detroit confidence, saying here we are, we're a stable government, [then] you've got a minister who had this portfolio for six years.
"It wasn't shopped around between four or five ministers as it was under the Labor Party. I've been the minister before. I've got the experience. You know that I'm bipartisan; you know that I'm prepared to cooperate with both sides of politics and work with the unions as long as no-one plays games. Let's see what we can do in two months."
Earlier in the interview MacFarlane took a whack at the previous government.
"The car industry has been pulled from pillar to post by the past government. They changed the scheme that I left them when I was the minister. I gave the car industry $4.3 billion; that money is still there. It's still being used. But then the green car fund came along and they changed that... then the confidence went.
"And of course, just to make it almost impossible for them, the government of the day, Kevin Rudd decided that it would hit the industry with a fringe benefits tax and that has decimated production because the cars started backing up in the show rooms, in the dealerships."
An insider at Holden has told motoring.com.au that there is an air of optimism following MacFarlane's appointment as minister – in contrast with the feelings within the company when faced with the free market stance taken by former shadow minister for industry, Sophie Mirabella, who failed to retain her seat of Indi after the election.
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Written byCarsales Staff
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