BRUCE MACKENZIE: You're with Bruce Mackenzie for Breakfast, and the biggest story in our region today is news that Lismore's dairy giant Norco plans to go ahead with the strategy that will see it stand down up to 170 ice cream factory staff. Now that is despite being offered almost $35 million as part of a rescue package funded by the state and federal governments. Joining us on the line now is the Commonwealth's Emergency Management Minister, Murray Watt, good morning.
MURRAY WATT: Good morning, Bruce. Good to be with you.
MACKENZIE: Yeah, thank you for your time. What do you make of this news that those people could still lose their jobs?
WATT: Well, it's obviously very disappointing news for the workers, their families, and I think the whole region, Bruce. I think all of us understand the important role that Norco has played for generations in the Northern Rivers, both as an employer and a really iconic institution. I'm certainly committed to working with Norco as much as I can to keep the factory open and to keep those jobs. On Friday, I was in Lismore to announce these anchor grants. And I met with the Norco CEO to talk about what we could do together to keep the factory open and keep these jobs going, so it is disappointing to see that Norco has said that it's very likely those workers will be stood down despite the funding that we're offering.
MACKENZIE: What did you hear from Norco during that conversation? Because your office put out a media pack yesterday, and Norco is one of six businesses that is getting some money under this anchor business support package, but Norco was conspicuous in its absence from that media pack. Everyone else was talking about how much they appreciated the money they were being offered, nothing from Norco. So were you getting the impression that they weren't happy with the offer of almost 35 million?
WATT: We were certainly aware that it was lower than what they were seeking, Bruce. And it was obviously a bit of an unusual press conference that we held on Friday - obviously the news of the Queen's death had just happened, so we couldn't do an open press conference in the way we normally would, but we thought it was important to get this news out. And it was really encouraging to see a number of the other businesses who have received funding; Sunshine Sugar receiving $12 million, which they've said will guarantee the 400 jobs that they have in the region; North Coast Petroleum, Williams Group, Multitask, Social Futures. And that's the thing is that, all up, these grants that the federal and state governments are making will secure around 1400 jobs in the region, which is a terrific thing.
Norco, we have understood for some time, is in a different situation to the other businesses. They weren't insured because of their location, they have suffered extremely large damage and have not been able to operate the ice cream factory since, and I guess that's why, in addition to this $35 million that has now been offered to them, the federal government has paid nearly six months worth of wages to their workers-
MACKENZIE: What does that amount to, Murray Watt?
WATT: It's over $8 million in wages that the federal government has funded, in addition to this $35 million that we're now offering. So, you know, I think that most people would believe that the offer that we've made to Norco is fair and reasonable. I can understand them wanting to seek more. And obviously, it's important that they make a significant contribution themselves. I think that, you know, my job is to use taxpayers' money wisely, and we obviously want to support the Northern Rivers with its recovery. But as you know, Bruce, there are many other needs in the Northern Rivers as well. And we need to make sure that money is being used in the best possible way.
MACKENZIE: As you mentioned, that ice cream factory is still a long way from being back up and running. And I think the estimated cost for the repair bill initially was something in the order of $70 million. So $35 (million) obviously is half of that. Before we focus on that, though, can I ask you; do you know what those 170 staff have been doing while they've basically been on the Commonwealth payroll?
WATT: Well my understanding, Bruce, is that some of those workers have moved on and have found other jobs. You'd be aware that there are many job vacancies in the Northern Rivers at the moment because, unfortunately, we have seen people move town and also, of course, there's a skill shortage across the country. So our understanding is that currently there's about 140 Norco workers who are receiving those wage subsidies. There are some who are being used at the plant just for ongoing maintenance and things like that. But the workers have been doing other things such as helping with the recovery efforts. Many of them have been working with the Lismore Council, along with Resilience Lismore in some of the recovery work, which has been terrific that they've been able to do that work. Others have actually found alternative employment, but the wage subsidies are helping keep them in work.
So I would certainly like to think that jobs can be found for each of these Norco workers, if the worst does happen and the factory closes. We've been in very regular contact with both Norco management and the unions that cover the workers there, preparing for this.
Because I think the other thing is that when these wage subsidies run out on the 23rd of September - as I say, six months after they began - the reality is that those workers, most of them, were going to need to find other employment anyway because even if Norco had received the maximum amount that they sought, realistically, it's going to take some time to rebuild that factory, and those workers would need to find other employment. So that's why we've been working so closely with the unions, the Norco management, the New South Wales Government, to make sure that there are plans in place for this day. But as I say, I still remain hopeful that Norco will consider this offer, will consider the funding that the federal government has provided in general, and that we can keep this factory going.
MACKENZIE: If Norco goes ahead with its plan to stand down these 170 workers, does it still get to say yes to the $35 million? Can it still get the money?
WATT: Well, we haven't actually negotiated that with Norco at this stage. I guess where we're at, at the moment, is waiting for them to make a decision about whether they're going to accept this offer. They are also seeking to use another federal grant that was awarded to them prior to the floods as a contribution towards rebuilding the plant as well so there is again, significant federal money on offer-
MACKENZIE: But does it come with strings attached if you know what I mean?
WATT: Well certainly with these anchor grants, one of the conditions was that, first of all, they were only open to businesses that had over 200 employees at their peak, because of course we've got other support for smaller businesses as well. And the other condition was that they remained with a very large presence in the Northern Rivers, what we didn't want to see happen was that we use taxpayers’ funds for businesses based in the Northern Rivers and only see them relocate. So certainly there would be an expectation that they get back to where they were, and use that money to re-engage people.
MACKENZIE: But there's no specific caveat that they have to keep those staff on while they rebuild, is that right?
WATT: Not that I'm aware of, Bruce. I think, again, it's unlikely that they would need their full workforce over the period of time that they rebuild and that's why I think it is a good idea that people have been looking for other alternatives. Unfortunately, this day was always going to come that the wage subsidies would end, and again that's why we've been working so closely with the unions and the company to make sure that people have options.
MACKENZIE: Do you think Norco is fair dinkum about standing down these people, or is it a bit of sort of brinksmanship?
WATT: Well I was a little surprised that they put out that statement quite so soon, given we had what I thought was quite a positive meeting on Friday and agreed to keep working together. I guess they've got to make their own decisions about what they communicate with their workforce and the broader community. But I would like to think that there is still room to work with Norco. As I say, it's a significant investment that the federal government has already made and is offering to make. And I, sort of, left the meeting on Friday hopeful that we could come to some arrangement. My understanding is that Norco was going to go away and see what else they could contribute themselves, I agreed to have some discussions with my colleagues and the New South Wales Government too. So, you know, I'd like to think that there's still some opportunity here, but at the end of the day, it's a decision for Norco what they do with their business.
MACKENZIE: Does there comes a point where you have to draw the metaphorical line in the sand and say 'enough is enough'? Or is there more money, potentially, in the pot, be it from the Commonwealth or the state?
WATT: Well, I think as I say, I've got a responsibility to all taxpayers, both in the Northern Rivers and across the country, to make sure that we invest their funds wisely. And I do feel that we're already offering a significant amount - $35 million in this grant, we've already paid over $8 million in wage subsidies. Norco are keen to use an $11 million grant that they've already been awarded by the federal government. So if you add all that up, that's a very large investment in one company. And, as I say, Norco is not the only employer in the region. The grants that we've offered to those other companies - the other five companies and organisations - are going to secure probably over 1200 jobs, leaving aside the Norco jobs. So, you know, I think that it's pretty clear that we're acting in good faith and we do want to stand with the Northern Rivers region and help it rebuild. But you know, there's money that we've got to find for housing, there's money we've got to find for other business support. And I think it's important that we make sure that everyone in the community gets a fair go out of their government.
MACKENZIE: Murray Watt, thanks for your time.
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