Sharman Stone MP

TRANSCRIPT: Greg Evans from 3SR FM talking to Sharman Stone regarding the Heinz Girgarre closure

May 31, 2011

Greg Evans:

The Girgarre sauce factory days comes as certainly one of the worst for the local community, we’re talking about 150 workers here who will soon be out of work.  The ramifications of this decision are far-reaching and joining me this morning, on the line is the federal member for Murray Dr. Sharman Stone.  Sharman,good morning.

Sharman Stone:

Good morning Greg.

Greg Evans:

Well I know that this would have saddened you enormously to think that this factory has had to close.

Sharman Stone: 

Oh it is really sad.  It's a shocking thing.  I mean it's shocking when we hear of any factory closure in a place as big as Shepparton, but when it happens in a little place like Girgarre where you've just basically got the factory and then a school, a hall and a few houses surrounded by farmland, of course there just aren't the alternative jobs within easy reach for that community. I hope it's not the end of food manufacturing in Girgarre but it’s going to take quite a bit to find an alternative source of employment.

Greg Evans:

Sharman why is the factory closing?

Sharman Stone:

Well Heinz has told me a number of things. They're saying they've got this bigger factory in New Zealand.  They can shift production over there and save costs.  Well they've also got a bigger factory in Echuca.  I know it makes baby food and other products but I wouldn't have thought that tomato sauce was that much different.  They also talk about it being a lower cost in New Zealand.  It’s been 20 years since they took over the old cheese and butter factory in Girgarre.  It's clear if you see the factory that they haven't put much investment into the factory over those years so it's a combination of Australian policy right now scares them I'm sure and other costs bearing down on us next year.  We've also had the water security shake up too.  So they're off to New Zealand and the irony of course Greg is that they don't even grow field tomatoes in New Zealand.  They'll be importing all the paste from wherever they've got a good price I guess.

Greg Evans:

Wouldn't it be lovely if they imported their tomatoes from Shepparton because of the locally grown tomatoes that have gone into these Heinz products are some of the healthiest and best quality in the world.

Sharman Stone:

Well absolutely!  Wouldn't it be ironic though if they imported the Australian paste into New Zealand instead of manufacturing it right here.  Because of course it's not just the factory jobs Greg. In fact they’ve got a brilliant local female manager named Morag.  She is one of the few women who manage food manufacturing in Australia.  I was speaking to her yesterday.  She's been doing a fabulous job.  She's going to have a hard time, like all the rest to find alternative work.  But there is also the tomato growers themselves.  The three that have supplied Heinz Girgarre have apparently been given one year to find work with another local food factory in Echuca. I think that’s only one year. There are all the pickers that help them throughout the year too.  They are also in a scary place. There's also the transport factor that supports that factory, the local trucking businesses that bring the product up and down the highway.  So the multiplier effects are substantial.  Can I just say I'm disappointed.  I know the state government was there last Friday at the factory trying to help out but Morag told me yesterday that they haven't seen sight nor sound of anyone from the Gillard Government offering any help, or even sympathy to try and assist in this terrible time.

Greg Evans:

If I could mention the word carbon tax would that remotely ring any bells at the Heinz factory?

Sharman Stone:  

Well it would be.  It's part of the policy mix that this Australian government has on the table right now which is frightening our manufacturing sector.  Heinz also owns the Golden Circle factory which is in Wayne Swan's own electorate in Queens land where they make the beetroot and pineapple products.  I was told many weeks ago by Heinz that there is a big boiler there, I can't recall whether it burns oil or coal but they said to convert it to gas to avoid the problems of the carbon tax would just be horrific.  The costs would be horrific so I wasn't surprised when part of the announcement at Girgarre was also closing half of that place in Wayne Swan’s electorate in Brisbane

Greg Evans:

Sharman I know you're going to do everything to try and identify an alternative place of employment for some of these people.  What does the future hold you think?  What's the next stage?

Sharman Stone:

Well I have to say there is a stunning community at Girgarre.  They may be a small group but they have a brilliant market that a lot of people will know they go to Girgarre market.  They've got a fantastic music Festival that I go to each year where they teach people to play a musical instrument and have a great concert over a long weekend.  There is a great little community development organisation in town and Heinz have offered to help them.  I asked them yesterday does that mean financial support to the community development organisation to look for other alternatives and they sort of said well maybe.  So we really have to help this community to pull together and look for options. There is unfortunately not much other alternative Heinz employment in Echuca but some of our other food manufacturers in the area have been in touch with the Heinz workers and said look we'll be back in touch with you.  There's two local possibilities of alternative work so the local other food manufacturers are being fantastic.  Our own community around Girgarre have been strong though it is a terribly sad time and we've got to really look at retraining and up-skilling.  We just don't want anybody to have to go away and leave the area because our people are our gold and our future investment, our current economy and community.  So it's all about trying to give people very quickly an alternative.  But to find out six months before this closure is going to happen and apparently it will take between six and twelve months to be completed, so we've got a little bit of time to find out what happens next.

Greg Evans:

Congratulations on your good work Sharman, thanks for your time this morning

Sharman Stone:

Lovely talking to you Greg about this sad news.

Greg Evans:

Yes it is.  We will talk again soon thank you, the Federal member for Murray Dr Sharman Stone commenting on the very sad news that the Heinz factory in Girgarre is set to close.