IAN MACFARLANE: Well it’s great to be here with SA Minister for Manufacturing and Innovation and Automotive Transformation Kyam Maher MLC and Assistant Minister for Skills and Training Senator Simon Birmingham to announce a $1.6 million grant to Mexican Express. On top of that $1.6 million they are adding a further $1 million which will create around 20 jobs. They are introducing a new process into the food processing sale industry and that’s part of a programme under the Next Generation Manufacturing Investment Programme introduced by the Commonwealth and State Governments to assist industries to setup in South Australia as we transition out of automotive manufacturing. This is part of nearly $30 million which the Commonwealth and the South Australian Government is contributing to assist new business to set up here and it’s about getting new businesses new long term jobs here in South Australia, and to provide the opportunity for business that establish here, to export their products and ensure that those jobs are long term. Overall there’s about $76 million being invested across this programme in South Australia and I’ll ask Kyam to say a few words.

KYAM MAHER: We’re very pleased to have the Commonwealth here today. This is a joint initiative of both the South Australian Government and the Commonwealth Government and we’re particularly pleased to be here at Mexican Express. We know that food manufacturing is going to be very important to the South Australian economy, as a sector food manufacturing has grown in South Australia every year, for seventeen years in a row and under these grants we see fifteen South Australian companies share in $29 million and that leverages private investment to take it to over $70 million that we’re investing in the future of manufacturing in South Australia today.

IAN MACFARLANE: Ian might like to say a few words and then we’ll take general questions.

IAN YOUNG (MANAGING DIRECTOR, MEXICAN EXPRESS): Thanks. That’s all I’d like to say, thank you [to laughter].

JOURNALIST: What are you going to use the cash for?

IAN YOUNG: The packing machine … [inaudible] … very important, we wouldn’t be doing this project without the funding. It’s a lot of money. They’re very expensive packing machines; there are only six of these in the world, so we’ll have another assembly [inaudible]. They’re very expensive. They’re fantastic. It will make a huge difference and allow us to all do all sorts of varying products [inaudible] … nobody else is doing it, so great. It’s great for export and great for the country. Ever since 2010 we’ve been looking around but these machines are just not around. They’re very hard to find in Australia. It’s a shame it’s not Australian, but … [to laughter].

JOURNALIST: Minister, [inaudible] this business is rightly very pleased, but the people of South Australia are probably wondering, is this enough to turn the fortunes around for this State, considering that Holden have died on your Government’s watch, the submarines appear to be under strife under your watch?

IAN MACFARLANE: Well let me just say that in terms of the automotive industry, its decline began a very long time ago. If we want to talk about Nissan and if we want to talk about Ford that closed under the previous Government. Today is not about apportioning blame; it’s about looking to the future. This is about a $155 million plan laid out by the Commonwealth and the South Australian and the Victorian Governments, to give new life to industry in Victoria and South Australia. We want to create new businesses and new jobs and in terms of shipbuilding, the Government will be dealing with that, and can I re-emphasise that no decision has been made about submarines.

JOURNALIST: Well when you look at Holden that was [inaudible] wasn’t it?

IAN MACFARLANE: Well it was Holden’s decision to close in Australia and can I say that when I came back into the Government in 2013 and I asked Holden about their future model, there was no future model planned for Australia. That’s been affirmed by General Motors in Detroit, who said nothing the Australian Government could have done, would have kept GMH going in South Australia.

SIMON BIRMINGHAM: Let me just add to that. This is really importantly about backing industries with a long term future for South Australia and Australia generally. Free trade agreements improve access to the biggest markets in the world for food producers in Australian industries. We’re now investing in growing the capacity of those industries in areas like food production and food manufacturing, where we have a comparative advantage as a country. Where these industries won’t be coming back for Government handouts time and time again because they have a sustainable future, they have a competitive advantage against the rest of the world and they can and will be the best in the world to grow a bigger business base. What we’ll see in the future is hopefully dozens and hundreds of businesses like this, operating out of South Australia, because it’s where we’ve got the capacity to grow as an economy into the future.

JOURNALIST: Can I ask how many jobs overall this money is creating?

KYAM MAHER: There are [430] new jobs in total out of the $28 million that the Commonwealth and South Australian Government have put in, and the private investment. But it’s not only about jobs; these sorts of investments are about creating new industries, creating the new manufacturing processes that allow us to have future industries and further jobs in the future. It’s about, as we’ve just heard, a new process, and a new way of manufacturing.

JOURNALIST: Can you talk about some of the other examples that are being funding, are they all in food?

KYAM MAHER: No, they’re not all in food. They’re over a range of areas. Levett Engineering, BAE Systems who are in the defence industry which we know is going to be very important for South Australia. Seeley International who is a world’s leader in air conditioning and refrigeration, so there’s a whole range of companies across a whole range of industries that we know are going to be very important in the future.

JOURNALIST: What was the criteria for the funding and did any businesses miss out?

IAN MACFARLANE: Well they needed to be new industries and producing new products and creating long term jobs particularly with an emphasis around being able to export product. As we see here with Mexican Express, this company is exporting product into Taiwan and potentially into South-East Asia. The future of Australian industry is to be able to supply international markets. So we wanted to see new products, new technologies and most importantly, long term and sustainable industries.

JOURNALIST: How close to you think you can go to filling the gap that will be left by Holden?

IAN MACFARLANE: Well that’s a challenge for all of us. That’s why Kyam and Simon Birmingham and I are working together here today. We want to see governments at all levels work together. This is one of a series of grants we’re rolling out in Adelaide at the moment. I’ve just visited Cutler Industries, where they received a grant of $1 million to upgrade their printing facilities so that they can produce exclusive labels on wine bottles, again another twenty jobs. So what we’re seeing is a whole diversity of industries investing in their future, assisted by the Commonwealth and State Government.

JOURNALIST: There’s a big federal presence in Adelaide for the next few days, is there any particular reason why you are descending on South Australia?

IAN MACFARLANE: Well Cabinet’s meeting here tomorrow and that means that nineteen people will be here out of the Federal Government and there are some locals like Simon Birmingham as well. So we’re having a Cabinet Meeting here, we do that right around Australia.

JOURNALIST: But why have that meeting in Adelaide now?

IAN MACFARLANE: Well because we wanted to come to Adelaide and we wanted to talk about the prospects not just in manufacturing but as you’ve heard from Minister for Communications Malcolm Turnbull, there’s opportunities and jobs in the NBN and we’re talking about a whole range of future potential industries and Ministers right across the board, Simon Birmingham is involved in providing the skills and training to the workers of those industries, so it’s an opportune time to come and talk about the positive opportunities in Adelaide and South Australia.

JOURNALIST: Is the presence a reflection at all that you’re concerned about the perception of the Government in South Australia?

IAN MACFARLANE: Well look, we want to get around Australia and talk to all Australians and we as Ministers do that all the time. Simon’s on the road continually, I’m on the road continually and as I say we have Cabinet meetings in different capital cities at various times. This is Adelaide’s turn and I think good is going to come from that.

[Ends]