7 YEARS IN AND NO COMPREHENSIVE MANUFACTURING PLAN

BRENDAN O’CONNOR MP.
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3 days ago
7 YEARS IN AND NO COMPREHENSIVE MANUFACTURING PLAN
BRENDAN O’CONNOR MP
We’re into the 7th year of this government, and yet the long term agenda for Australian manufacturing is paper thin.
 
Reports today reveal more piecemeal rhetoric from the Industry Minister and no comprehensive plan for industry policy or manufacturing.
 
The economic Budget update was a perfect opportunity to announce such a belated plan, but nothing was forthcoming.
 
COVID-19 is a blinding reminder of the error that was goading car manufacturers to leave our shores, a failed energy policy increasing the costs of manufacturing, the withdrawal of private capital from research and development, the depletion of critical skills, and the destruction of the viability of smaller manufacturers further down the supply chain.
 
The virus has demonstrated just how vulnerable Australia is to global supply chain shocks. The Liberals’ lack of a economic plan is leaving Australia, and the manufacturing sector, dangerously exposed to turbulence in the global economy.
 
While some of our manufacturers have adapted to produce much needed Personal Protective Equipment and other essential suppliers during COVID-19, Australia needs a more sophisticated manufacturing plan than just responding to crises.
 
A number of business leaders and experts have raised concerns about Australia’s research and development capacity, which is inextricably linked to a recovery led by advanced manufacturing.  
 
However, the only plan the Morrison Government currently has is to rip $1.8 billion from the Research and Development Tax Incentive (RDTI).  
 
The Morrison Government speaks publicly against raising taxes to drive economic recovery, but at the same time they want to increase the tax burden on innovative firms by nearly $2 billion.
 
This Government simply likes to talk up manufacturing, while presiding over its decline. 
 
Australia has always been a nation that makes things, but this ability is shrinking as the manufacturing sector has been contracting not growing.
 
As we look to the future and how we best emerge from the health crisis and recession, the Morrison Government must do more to support the Australian manufacturing sector. A strong local manufacturing industry will create jobs and long term export and trading opportunities
Industry, Innovation and Science