Sharman Stone MP

TRANSCRIPT: StarFM interview regarding Heinz Girgarre closure

May 30, 2011

Monday 30 May 2011.

Interviewer:

First of all these job cuts have basically blindsided the community of Girgarre.  How scared are locals of their future there?

Sharman Stone:

Girgarre is a tiny town, less than about 200 people and for the last probably, half a century there has been a big factory in town.  Previously it was a cheese factory and then the tomato sauce factory and that has employed local people.  Now to have the whole show start to shut down in about six month’s time, that is a terrible blow.  There are not a lot of other jobs around, especially when the area has just gone through 6 or 7 years of drought, then a shocking flood which certainly affected those local people.  So it couldn’t be worse news at this point in time.  But we have to try and look to the future.  I’ve just been speaking again to Heinz, they’re saying that they will try and support the local Girgarre economic development committee in looking at alternatives.  They’ve been trying to get their three growers another 12 months of supplying to an Echuca factory, but it’s going to be tough.

Interviewer: 

So operation will be shifted to New Zealand, but they don’t grow manufacturing tomatoes, so where are they likely to source them?

Sharman Stone:

Well that’s a very good question.  I guess tomato paste is one of those commodities now worldwide; it lasts as a septic paste for a very long time, years and years.  So I suppose whatever is cheap on the market out there, whether it comes from China or somewhere else, it can be brought in to New Zealand, add water, put a label on the bottle, and you’ve got your tomato sauce.  I think it’s a real shame that we have a factory located amongst the tomato producing farms and it is now a case where you’ll take that factory to New Zealand, which as you say, doesn’t even grow field tomatoes.  But of course the cost structures are better for them.  They’ve got a Heinz factory over there, just as they have a Heinz factory in Echuca but they do have apparently a Watties/Heinz factory, and I just have to say what a sad, sad day.  But it’s really a case of our federal government looking at its current policies which have driven so many of our manufacturers, in particular food manufacturers with their high import costs have driven them to be thinking of these alternatives.

Interviewer:

Why hasn’t Canberra stepped in?  Where is Simon Crean on this?  Has the Gillard government failed region?

Sharman Stone: 

Well I haven’t heard a peep out of Simon Crean about this factory closure, taking over 146 jobs.  Of course there’s also a Heinz closure in Mr Swan’s own electorate, that’s the treasurer, where the beetroot manufacturing part of Golden Circle apparently is going to be scaled down, particularly because they’ve got I think its coal fired burners there and of course the carbon tax will really hit them for six.  So all we’ve got is silence on that front.  I know the Victorian state government was at the Heinz factory on Friday asking what they can do to help, but I’m afraid I haven’t heard too much or anything from the federal government other than oops, there goes another factory.

Interviewer:

So other jobs are expected to be lost in the region as well, with the downsizing of Tongala abattoir and Murray Goulburn cheese over the next 2 years, what’s the future of our small communities?

Sharman Stone:  

Well of course we’ve had seven years of drought which put enormous pressure on the supply of all of our base food ingredients like dairy and fruit and vegetables, but that isn’t the problem, right now it’s about the costs of doing business in Australia.  It’s the high dollar compared to the US and if you’re exporting, and a lot of our local product is exported.  But I’m afraid if you’ve got something like a carbon tax coming down the straight at you, you’ve got higher wages being discussed, you’ve also got a lot of multi-nationals. For example SPC Ardmona is owned by Coca-Cola Amatil, their CEO has talked about them “right-sizing” as he calls it, which is code for downsizing, and we are holding our breath there because that’s a very big number of workers in both Mooroopna and Shepparton.  Of course the Tongala abattoir there, they’ve already reduced their staff numbers quite substantially, and that is in response to so many of the dairy herds being put through the abattoir during the drought years.  Now dairy farms are in the “build-back” mode, so hopefully that abattoir will build back.  Currently it’s importing in Tasmanian livestock for example at the moment to keep it going at Tongala.  Not sure about Murray Goulburn, I just hope that they realise that the best, the most fantastic dairy product comes from northern Victoria and we are going to be for a long run of good seasons now, so we just have to hope that although they are briquette fired - their burners at Cobram are coal fired – that they can be converted and somehow they can avoid the horrific impacts of the carbon tax that we’re told is going to happen to us about this time next year.

Interviewer:

Thanks for that Sharman.

Sharman Stone:

My pleasure, good on you, no worries, bye.