Right: Arthur Sinodinos

NEWLY appointed federal industry, innovation and science minister Arthur Sinodinos claims to be “very optimistic” about the future of manufacturing in Australia, including supply chains, despite the closure of the Australian car-making sector this year.

Following Ford’s Australian production pull-out and Holden’s engine plant closure and end to small-car production last year, Holden will finalise its manufacturing withdrawal with the full shutdown of its Elizabeth assembly plant in South Australia on October 20 while Toyota will follow suit with its Altona operations in Victoria around the same period.

As well as costing thousands of job losses and billions in lost revenue from the car-makers themselves, the industry’s wind-down is expected to decimate much of the local automotive components sector.

Upon his appointment as minister this week, which sees him replace Greg Hunt who moves to the health and sport portfolios in the wake of Sussan Ley’s resignation, Senator Sinodinos said: “I am very optimistic about the future of high-value manufacturing in Australia, including its role in global supply chains.

“I repudiate Labor’s policies, which will result in additional costs to Australian consumers and our great export industries, which face vigorous overseas competition.

“We want to build confident and outward-looking Australian businesses that generate jobs and give us more control over our economic destiny. I believe it is workers, entrepreneurs and risk-takers who should be at the centre of the economy – not government.”

To be sworn in by the governor-general in Canberra on Tuesday, Senator Sinodinos was previously cabinet secretary, having been brought back to cabinet by prime minister Malcolm Turnbull in September 2015.

The senator had resigned nine months earlier from his position as assistant treasurer in Tony Abbott’s ministry during an investigation by the New South Wales Independent Commission Against Corruption (ICAC).

Considered an expert on financial markets, economics and public policy, Mr Sinodinos served as chief of staff to former prime minister John Howard from 1997 to 2006 – a role that came after serving with him in the late 1980s when he was opposition leader – and for a time was considered one of the most influential men in Australia.

He left politics in 2006 to work for Goldman Sachs JBWere and, later, the National Australia Bank among various top-level corporate appointments, but returned in 2011 as a Liberal senator for NSW.

“I have been a strong supporter of Australian industry and jobs throughout my public life,” Mr Sinodinos said this week.

“Collaboration is a fundamental part of the Turnbull government’s National Innovation and Science Agenda and will be important to my approach to industry policy more generally.

“Industry policies and programs do not operate in a vacuum and should always link with macroeconomic, competition, regulatory, employment, trade and investment policies.

“I also have a keen appreciation of the importance of innovation and science policies, including the role of national institutions such as CSIRO, in delivering economic growth and development.”

The prime minister Malcolm Turnbull described the industry, innovation and science portfolio as “critical to generating the jobs of the future”.

“Senator Sinodinos’ extensive public policy experience over many, many years gives him a strong understanding of the key drivers of new sources of economic growth and how government can ensure that its policies deliver the innovation, the investment, the technology that will secure the future for our children and grandchildren,” he said.

Mr Turnbull refused to be drawn on suggestions from Labor that it could be problematic appointing someone with baggage such as that carried by Senator Sinodinos – a reference to the ICAC investigation – and also defended the fact that this is his second cabinet reshuffle since winning the federal election last July.

“This is a very strong ministry. The cabinet, as you know, and the ministry was sworn in about six months ago. These changes are the consequence of the resignation of Sussan Ley, but this is not a large reshuffle, as you can see,” he said.

“I have more ministerial talent in party room than I have places in the ministry. That presents some challenges but, from a prime minister’s point of view, it is a good problem to have.”

By Terry Martin