TRANSCRIPT: Press Conference at Global Manufacturing Group, 15 August 2019
E&OE
Subjects: Sovereign Industry Defence Fund, Global Manufacturing Group, Decentralisation, Small Business
With: Llew O’Brien, Member for Wide Bay and Phil Dowling, Director of Global Manufacturing Group
JOURNALIST:
So Llew can you tell us what announcement is being made here this morning?
LLEW O’BRIEN:
So first and foremost, it’s great to have my boss and good friend Michael McCormack, acting Prime Minister here today to make this announcement in Maryborough at Global Manufacturing Group. Today we are announcing that this company has received a $780,000 grant through the sovereign industry defence fund to help support their business to support our nation. So, this money will go towards upgrading equipment and installing new equipment so that they can service contracts such as the Rheinmetall 400 Boxer contract which Team Queensland has been very instrumental in achieving. So, this is a really great announcement for Maryborough, this business here employs some 58 people. So it not only creates hope for further employment and growth but it stabilises the business here as well to ensure that those jobs are kept here in Maryborough. Some six apprentices that work here also, it’s a great opportunity for young people to develop skills and entire the work force. And I’m really proud to be here today to make this announcement and it just confirms that Maryborough is the manufacturing centre of Wide Bay.
JOURNALIST:
So were those jobs already existing, those 58 jobs or are they going to be new positions created?
LLEW O’BRIEN:
So they currently employ some 58 people her now with the economy and fluctuations in business as they are we are always looking for opportunities to ensure that those numbers are secured but I’m told by Phil, the CEO here, that this presents an opportunity certainly to grow the business so we are hoping to see more people employed here in Maryborough.
JOURNALIST:
What is it that this business does?
LLEW O’BRIEN:
Well, this business has been in operation for some decades and has a proven track record of manufacturing steel for certain projects, so in this case we are specifically looking at the Boxer Rheinmetall Land 400 contract. That’s why they got this funding so that they can produce parts over the next five years while this contact is serviced while they built these vehicles but then over the next quarter of a century, 25 years, of maintenance and upgrades on the vehicle will be supplied through businesses such as Global Manufactory Group here in Maryborough. So the Morrison McCormack government is helping the businesses that help our nation.
JOURNALIST:
Five year contract, do we know how much is going to be produced at this facility in that time?
LLEW O’BRIEN:
That’s probably something Phil will be better to speak to but there is certainly five years’ worth of work with once again the maintenance and further upkeep.
JOURNALIST:
Obviously it links strongly to Rheinmetall, tell us about the security there, is there going to be extra security involved now in this area of Maryborough?
LLEW O’BRIEN:
Well, what they’ll be producing here will be pieces of very specific, finely measured, material that won’t be of use to anyone, they won’t be producing anything dangerous here unless someone wants to through a lump of steel at you but look, there is no risk in terms of security and safety as this is a business that has been operating for many years producing items such as this I’m led to believe for other companies, so it’s all good news for Maryborough.
MICHAEL MCCORMACK:
It’s great to be here with Llew O’Brien the hard working member for Wide Bay, once again delivering for the businesses of Wide Bay, once again delivering for Maryborough which is now at the heart of regional defence capability, indeed Maryborough is the heart of the nation’s defence capability, the steel componentry that is going to be churned out of the Global Manufacturing Group here in Maryborough is going to make sure we guarantee the future on going jobs for the 58 people who work here, you’ve heard Llew O’Brien talk about the six apprentices we want to grow that number whether it’s through the skills package to increase young people getting jobs getting apprenticeships whether it’s in steel and fitting whether it’s in fabrication whether it’s in fitting and turning, whatever the case might be, we want to grow those jobs whether it’s in Maryborough or whether its anywhere in regional Queensland and particularly regional Australia. We want to make sure we guarantee those jobs guarantee small business, its Phil Dowling and his team here at GMG who are at the very centre of producing these steel componentry fitting out these units making sure that our nation’s defence capability is what it ought to be, so whether its small parts or large, GMG are going to be churning them out at large at their factory here in Maryborough and why shouldn’t a little factory at Maryborough have that ability to feed into our overall defence program and this is what Melissa Price the defence industry Minister wants to see happen, she wants to see the action, the jobs, the capability shared right around the nation and regional Australia is going to be front and centre of our defence capability, front and centre in making sure our nation’s defence industry is growing. We’ve got hundreds of billions of dollars we’re invested in defence industry it’s not just the capital cities that are benefiting, its places such as Maryborough and I know how hard Llew O’Brien fought for this funding to be delivered to GMG. I know how hard Phil Dowling and his team work here, this $785,150 grant is going to secure their future, help them be able to grow and make sure that Maryborough has real manufacturing future, well done GMG, well done, particularly Llew O’Brien.
JOURNALIST:
Why was this company selected for this project, was there a tender process?
MICHAEL MCCORMACK:
Well because they’ve actually got start of the art machinery componentry already here, they’ve got people who are at their very best, they’ve harnessed their skills they’ve worked on honing the young apprentices to be the world’s best. They develop the world’s best componentry here, they make it, they manufacture it and they applied for the actual grant and they achieved it because they showed they have got the capability that they’ve got the future, they’ve got the vision, they’ve got the plan, and as I say, why shouldn’t a little plant here in Maryborough share in our hundreds of billions dollars of investment in defence industry. This is exactly what the Morrison government is actually doing right around the nation whether it’s a place the size of Maryborough or whether it’s one of our capital cities. We want to grow our defence industry, we want to grow our national security our capability and we are doing just that with these sorts of grants.
JOURNALIST:
How significant is this process in terms of national security?
MICHAEL MCCORMACK:
Well, it’s vital, it’s important, it’s making sure that our national security is what it should be. Our national security is the number one order of the government and you can always trust Liberals and Nationals to get it right when it comes to national security, that’s what we’re doing with these investments today, $800,000 in Maryborough helps the national security, how good is that?
JOURNALIST:
Is there… what they’re producing here will that only go to Rheinmetall or will that go to other companies as well?
MICHAEL MCCORMACK:
Well, in fact I had a look at some of the gear that they’ve already got ready to be shipped out today and some of it is for rail in regional NSW, going to Bathurst, in regional NSW indeed, other parts pieces and components are going to car manufacturers to put in various vehicles around the nation there not just helping our defence capability although this grant is specifically for our defence capability but this factory here is churning out a lot of steel componentry a lot of steel components that otherwise, that sort of industry, that sort of manufacturing may well have to be pushed off shore, so we’re keeping jobs locally. We’re making sure there is a future for Maryborough and when it does come to Maryborough, you know, it’s a place which as a rich military history, it’s not just GM Group it’s not just Ryan and his team doing great things with his projectile manufacturing it’s also the wonderful little history museum which is also be the recipient of a federal funded grant. Not only has it got a great past not only as we’re investing in the here and now but we’re investing in Maryborough’s defence and military future.
JOURNALIST:
So Phil, how important is this grant for your company?
PHIL DOWLING:
Exceedingly important, what we need to do in Australia to get ourselves to international standard, right at the top level, and this has accelerated us, we would have gotten there eventually but the Federal government has allowed us to accelerate ourselves within four of five months to the top level, international quality standard which required for where we are going particularly in the defence industry.
JOURNALIST:
How long would that have taken you to get to that level without that Federal government funding?
PHIL DOWLING:
5 or 6 years.
JOURNALIST:
So it’s spread it up by five or six years, what does that mean on the ground here, what does that mean you can do?
PHIL DOWLING:
Well, it means our staff have been accelerated in their training to international standards, a top level where they can talking to anybody in the world especially our allies. We have devices now and some coming that are not here yet but that’ll accelerate us to do a whole lot of exotic things in house, on the ground in Australia for whoever and that’s really, really important in my opinion for the company.
JOURNALIST:
What sort of training did your team receive, where does this training come from?
PHIL DOWLING:
Well, the suppliers of the kit software, part of that grant money was allocated to training them and bringing them up to speed and of course all they have to do is pick up the phone and email and that can accelerate a little bit more and that’s what’s happening right across the board, our whole team in the area that the Minister visited this morning they’ve already had 8 days training which really brings them up to speed and they can tap in at any time to do more going forward.
JOURNALIST:
What’s the importance of having a regional company like yours contribute to something of national [inaudible]?
PHIL DOWLING:
Decentralisation, I think is very important.
JOURNALIST:
Tell me why?
PHIL DOWLING:
Well, if you’ve got everything concentrated in the one spot, I don’t think that’s a very strategic move, unfortunately. Maryborough specifically, in the region here we have a big army base at [inaudible], everyone going to Shoalwater drives past so I think we are strategically placed regionally to provide a service and not only that but transport activities and logistics, we can place anything anywhere within a couple days.
JOURNALIST:
What’s your steel actually going to be used for, is it a new creation of those casings?
PHIL DOWLING:
Confidential.
JOURNALIST:
It’s confidential, can we know anything about what kind of area it’s going to be used for?
PHIL DOWLING:
Well, you know all about the Boxer project, so with a bit of luck and good management, working closely with them, that’ll take up 50% of our activity on this side because that’s their policy. Its metal bits anything from as big as your fingernail up to about 4 tonnes. And we are a totally turnkey operation. So, raw materials come in one end and product goes out the other and beautifully ready to bolt on to whatever.
JOURNALIST:
And is there anything like this in Australia, does any other company have this capability?
PHIL DOWLING:
Yes, there are a couple in Queensland, New South Wales and Victoria are also very big along with South Australia, we’re all very similar but have different client bases and we are coming on board to work with defence to really get us on the front foot.
JOURNALIST:
Just lastly, any more jobs on the horizon with this funding from 58 members onwards?
PHIL DOWLING:
Yes, we believe, we’ve already ramped up operations and we’ll be probably looking to, if and when Rheinmetall comes on board, pick up a couple of high tech tradesman, liaison personnel, another two or three apprentices in different areas but at the moment probably no new jobs until the new kit comes on board and we become ready to use it. There is always a bit of a training lag but we can accelerate that.
JOURNALIST:
Thank you.