Doorstop in Hobart, TAS

E&OE TRANSCRIPT
DOORSTOP
HOBART
WEDNESDAY, 31 JULY 2024

SUBJECTS: New portfolio responsibilities; Energy efficiency grants program; Cost of living impacts on small business; Tasmania’s aquaculture industry, Housing, Live export industry.

JULIE COLLINS, MINISTER FOR AGRICULTURE, FISHERIES AND FORESTRY, MINISTER FOR SMALL BUSINESS: Can I say it’s terrific to be back at Tunnel Hill Mushrooms with Dean to announce that he’s been successful in a federal government grant, but particularly to be able to do it today - keeping my small business hat on but adding, of course, agriculture, fisheries and forestry. And what a delight it is to be out and about after just one full day with my feet under the desk, back out with a Tasmanian producer who’s been incredibly successful here at Tunnel Hill Mushrooms. But, importantly, as Minister for Small Business and Minister for Agriculture, Dean has been successful in securing a small and medium enterprise energy efficiency grant - over $20,000 that will help him make upgrades here. And I’m going to hand over to Dean to talk about what those upgrades with about in just a minute.

But essentially these grants, there’s 1700 across the country. Around $40 million that will be going to small and medium enterprises to help them put downward pressure on their energy bills. This is one way that the government is providing targeted support to small businesses across the country. We, of course, had our $640 million as part of the last federal budget in targeted support for small businesses right across the country. We need to put support out there in terms of small businesses, also of course cost of living for households. And we know small businesses will also be benefitting from the tax cut that came in just a few weeks ago. Every Australian taxpayer, all 13 million of them, getting a tax cut from 1 July. And, of course, we also need to make sure that we put downward pressure on inflation, and that is why we’ve got targeted support such as grants, such as things as the instant asset write off, extending mental health and wellbeing programs are all really important to make sure that we provide that targeted support for our small businesses here and right across the country. I might hand over to Dean to talk about this grant and then I’m happy to take further questions.

JOURNALIST: Can you tell us why you applied for this grant? What was the reason behind it?

DEAN SMITH: For me to apply for this grant, for a small business, it’s incredibly important to get financial assistance when I can. The cash flow, the profit margins are very small in small business, very tight. So any sort of federal or state assistance is greatly appreciated. I applied for this grant because this tunnel hasn’t been touched since the 1970s, so there’s a lot of dodgy electrical work in there. A lot of high usage, high wattage lighting. So I want to upgrade the lighting system to more efficiency options around.

JOURNALIST: So it’s just the lights or are there other things as well?

SMITH: Yeah, mainly lighting. But we’ll also have some timers and some sensors so, you know, power is not being used when no-one’s in there, which is important. Plus the electrical switchboard will be part of the upgrade as well. Like I say, it hasn’t been touched for about 40 years, and the electrical switchboard is not the best in a sort of humid environment. So everything needs to be sort of upgraded and more efficient.

JOURNALIST: What are, I guess, some of the challenges you are facing at the moment in terms of running a business? We know cost of business is tight but, yeah, tell us about that.

SMITH: As I said, it’s always – for small business it’s always hard with the cash flow. You’re relying on week-to-week sort of income. The biggest challenges I’ve sort of faced to be honest is sort of trying to grow my business. It’s a really sort of weird situation because I’ve been applying for loans and grants for a number of years, but I’m not kind of big enough to get any assistance. But for me to become bigger, I need the assistance. So you’re sort of in that really weird sort of Catch-22. So it’s really been difficult to sort of grow and sort of push my brand. We’re sort of limited with sort of assistance, so this is why this grant is so important to me.

JOURNALIST: Could you just explain how this will help you expand the business?

SMITH: It will help me – it will help my business grow, this grant, because I also run an agritourism business here as well as part of, as well as growing mushrooms. And I’ve got some – half the tunnel is in dark. There’s no lighting at all in the back part of the tunnel. And I get a lot of interest from older demographic people. So it’s quite – it will certainly help my business grow, getting more people here in a safer environment as well. Sort of walking up the middle of the tunnel with people with walking sticks and things like that is not ideal. So I don’t want to have to sort of, you know, worry about that. So this is why this, this will certainly help as well.

JOURNALIST: And it’s a pretty big part of Tassie history. Can you tell me why it’s so important to maintain?

SMITH: I’m very passionate about this tunnel. I’m very proud. I love showing people the tunnel. I’ve always sort of approached it as it’s not really my tunnel - it’s everyone’s tunnel. So if people want to see it – and I have people visit me that have had, you know, their grandparents might have travelled the train and things like that, so they’re really connected to it. So I kind of like, you know, showing people and telling a story behind this place. I don’t think it’s mine. I’m just kind of like the caretaker at the moment. So, you know, I’m just very passionate about the place.

JOURNALIST: The upgrades, are they – are you expecting that will make your energy bills cheaper or is it just work you had to get done and this allows you to get it done without any other kind of a cost to your business personally?

SMITH: Yeah, no, upgrading the electrical system to more energy efficient will certainly be great for my cash flow. It will reduce my power bills immensely, I would have thought. So, like I say, I’ve got some really old light fittings in there which are double ballast, so they’re just drawing current all the time. So to switch those to sort of more energy efficient ones and to have, you know, systems in place that will turn off when no-one’s there and come on when, you know, you put the timers on, I just don’t have any of that at the moment. So the power is one of our biggest expenses by far.

JOURNALIST: As a small business [inaudible]

SMITH: As a small business, it’s critical that I cut the cost where and when I can. I’m working on very small profit margins. So in my business I am relying on, you know, restaurants and cafes to pay their bills on time, and that always doesn’t happen. So I’ve struck this before, but it’s – you know, you’re living week to week and having sort of saving will just be able, my business will be able to grow immensely from it.

JOURNALIST: Just on your power bill, do you mind saying roughly how much you pay a year or use in power?

SMITH: Yeah, it’s a bit scary. My power bill at the moment is somewhere between $8,000 to $10,000 a year. And we are running a business and a house, but the business is a huge component of that. And the tunnel upgrade is certainly, will reduce those power bills immensely, yeah.

COLLINS: Back to other questions then, for me. Thank you, Dean.

JOURNALIST: So what proportion of the grant money is staying here or coming here to Tasmania?

COLLINS: So it is proportionate on the number of small businesses around the country. So I understand of the 1700 grants from around the country, there’s 30-odd here in Tasmania.

JOURNALIST: Is this something, you know, that will happen again in the future? I suppose, was it a big uptake?

COLLINS: This is the second round of these grants. Overall, it’s been over $60 million in two rounds of the grants. What we know is that small businesses appreciate these grants. As we’ve just heard, they will put downward pressure on people’s energy bills. I’ve met some small businesses who are saying that it’s saving them up to 20 to 30 per cent on their energy costs by having the energy efficiency upgrades that these grants have allowed. It’s also been for some small businesses the impetus for them to invest further and to add to the grant to make further energy efficiency upgrades, which is also of course helping us with net zero for 2050. So it is important for small businesses, but it’s just one thing that we’re providing small businesses. There are also, of course, a million small businesses getting the $325 direct energy bill rebate, and this comes on top of the small business up to 650 last financial year. So we are providing support for small businesses. Plus, of course, the instant asset write off.

JOURNALIST: As you mentioned, first week in a new job. How are you feeling about the new portfolio you’ve taken on?

COLLINS: Look, I’m really excited. I already have a relationship here in Tasmania with a lot of local producers and farmers, and I’m looking forward to getting out and about here in Tassie and, indeed, right across the country. I’m obviously going through the process of still receiving briefings. I’m clearing my diary a bit, to make a bit more room to get out and about to talk to more producers here in Tassie and right across the country. So I’m very excited.

JOURNALIST: Is there anything you’re looking forward to achieving in this new role?

COLLINS: Look, I will be talking to farmers and producers across the country. What I want to do is support them to make sure that that continues to thrive. What we know, of course, is that Australia produces a huge amount of food and fibre, and, in fact, we’re world-renowned for it, particularly here in my home state of Tasmania, and I want to make sure we continue to do that and we continue to grow our exports. 

JOURNALIST: There’s been a lot of calls already from groups involved in the salmon and forestry industries. Are you expecting a lot of pressure on you, particularly as a Tasmanian and Tasmania is so reliant on those industries, to uphold those industries here?

COLLINS: Look, I think - I’ve been a long-time supporter of the salmon industry here in Tasmania. Of course, my electorate is one of the largest salmon producers here in Tasmania. And there are a remarkable amount of people working in that sector – scientists, experts, people on the ground. And I know what a valuable contribution it makes here in Tasmania. It does need to be done sustainably. I think that we can protect our environment and have a thriving industry, and that’s what we’ve been able to do to date. And I would like to see that continue.

JOURNALIST: So you’ll be asking Tanya Plibersek to renew the licenses in Macquarie Harbour?

COLLINS: Look, that is a decision that Minister Plibersek needs to make under the law, under the former Howard Government’s law. She has certain criteria and guidelines that she needs to adhere to under the law, and I’ll leave that to her. I wouldn’t want to make any comment around that specific case other than to say that as a proud Tasmanian I’ll continue to advocate and stand up for Tasmania, as I have always done.

JOURNALIST: As you say, you’ve now encouraged a lot of the industry’s stakeholders, though. Do you think that it’s reasonable that they look to you for support in that particular case?

COLLINS: Look, I’ve been engaging with the salmon industry and aquaculture industry here in Tasmania and around the country for many years. I’ll continue to do so, and I look forward to continuing to work with them.

JOURNALIST: Are you planning a tour salmon farms as part of your new role?

COLLINS: I’m certain I’ll be out and about. I have done that before. I have been on to some of the salmon farms, and I’ll continue to talk to the sector and industry as my job requires and, indeed, as a proud Tasmanian.

JOURNALIST: Can salmon farming be done sustainably in Macquarie Harbour, do you think?

COLLINS: Look, I think we can do both here in Tasmania. We can have a thriving salmon and aquaculture industry and we can protect our environment.

JOURNALIST: There’s – you’ve obviously faced a pretty loud political opponent in Max Chandler-Mather, I think his name is – I always mess up the last name. You’ve now got an equally loud opponent in Jonno Duniam, who’s even closer to home in Tasmania. Are you expecting that to be a pretty public battle between you two?

COLLINS: Look, I think that as proud Tasmanians, the federal Tasmanian representatives usually get on and work together for Tasmania’s best interests, and I’m sure you’ll see that continue.

JOURNALIST: Do you see your shift from housing to agriculture as a demotion?

COLLINS: Look, I’m really thrilled to be the Minister for Agriculture, Fisheries and Forestry and to still be the Minister for Small Business. This is a terrific combination of portfolios, and I look forward to going around representing our producers and our rural and regional communities right across the country.

JOURNALIST: Do you see it as a demotion-

JOURNALIST: - Tasmanians will get a worser deal, I suppose, given that they won’t have a local advocating for them at a federal level?

COLLINS: Absolutely not. I’ll continue to stand up for Tasmania. I’m very proud of what we’ve achieved in the housing portfolio here in Tasmania. We’ve already provided the state government with around $145 million to date for additional housing. And I’ll continue, of course, to lobby and support Tasmania at the federal level, as people would expect me to do.

JOURNALIST: Just my last question, sorry. Do you see that as a demotion to be moved out of the housing portfolio? There had obviously been some challenges in it.

COLLINS: Look, I’m really excited about my new portfolio. I’m going to get out and about and make sure that our agriculture, fisheries and forestry continue to thrive and grow. I think I leave a terrific legacy when it comes to the housing portfolio. I’ve already been working closely with Minister Clare O’Neil, and I congratulate her on that new role. You know, she’ll be able to go out and roll out lots of houses in coming weeks and months, and she’s really excited about her new role, too.

JOURNALIST: Are you involved in discussions on Rex Airlines’ future with the going into administration? It’s a bit of a problem for a lot of rural folk.

COLLINS: Yeah, I think many Australians are feeling for regional communities like here in Tasmania and, indeed, around the country with the Rex Airlines announcement this morning. And also, of course, for the staff of Rex Airlines. I think all of our thoughts are with them today. It must be really difficult and quite uncertain for them. I know that our federal minister Catherine King, Minister for Industry and Transport, has been working closely and in discussions with other airlines and, indeed, with the aviation sector about how do we make sure and what government support is going to be required to make sure that we continue to see regional communities serviced.

JOURNALIST: King Island and Flinders Island obviously incredibly dependent on those, on that airline as one of only two that services it. Are you concerned for the impact on them if Rex does fall over?

COLLINS: Look, I think everybody is concerned about the uncertainty about Rex Airlines’ announcement today, about them going into administration. I know Minister King will very diligently engage and work with people. We want to make sure that regional communities still get access to airlines.

JOURNALIST: Farmers are still struggling with high input costs. Are you able to give any relief, and what would that look like?

COLLINS: Look, I’m still getting briefings and in discussions, and I’m starting my first stakeholder meetings this afternoon and will be for the rest of the week, to talk to farmers and producers about their cost-of-living impacts and what that means for Australians. Certainly, of course, we know that input costs have been high and I’ll talk to them. The briefings that I received, as I’ve said, that some of those input costs are coming down, but I look forward to those engagements in coming days and weeks.

JOURNALIST: Farmers feel, some farmers feel betrayed by the decision to ban live export. Will there be some kind of investigation into this?

COLLINS: Look, this is a commitment that we took to the last election. I understand that those people that are involved in that industry will be finding this a tough decision. But, of course, it was something that we have a mandate for. We took it to the last election. I certainly will be engaging with the Western Australian government in terms of a transition and what we want to do is make sure that that transition is as smooth as possible.