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News
Govt should 'fast-track' projects to boost manufacturing
17-08-2012
The federal government has been urged by industry and unions to fast-track infrastructure projects and bump up local content requirements to boost the ailing manufacturing sector.
Prime Minister Julia Gillard was on Thursday handed a report by the Manufacturing Industry Taskforce she appointed late last year.
Among its 41 recommendations were calls to bring forward and increase investment in infrastructure projects, further stimulus in residential and commercial building markets and an expanded plan to encourage local participation in supply contracts.
The taskforce, made up of industry leaders and union bosses, also called for a reduction in business tax burden.
Gillard backed the report in principle but was quick to rule out any support for recommendations to further investigate a sovereign wealth fund and a domestic reservation policy for gas.
The sector faced acute pressures, particularly because of the strength of the Australian dollar, she said.
It is changing business models in manufacturing, bringing pressure on manufacturing but also an era of tremendous opportunity," she said.
"Don't let the pessimists say that we can't have a future in manufacturing."
Australian Manufacturing Workers Union national secretary Paul Bastian said Australia had lost 100,000 jobs or 10 per cent of its workforce capability in the last five years.
A further 85,000 jobs are at risk in the same period ahead.
The biggest problem was the high Australian dollar, which is going to remain high for a while, Bastian told reporters.
"Anything the government can do to bring the dollar down, we say, should be explored," he said.
Australian Council of Trade Unions secretary Dave Oliver said the report was not a "silver bullet" but it marked the start of a process to improve conditions for local manufacturing despite significant challenges ahead.
"This is a blueprint or a road map for the future and it will only succeed if we continue to engage constructively and work together," he said.
Opposition industry spokeswoman Sophie Mirabella said the report was another example of the prime minister outsourcing the basic responsibility of making policy.
"The taskforce's report is very disappointing in its limp response and I don't have any confidence there will be any decisive action from the government coming out of this report," she said.
She said the report was horribly compromised because the union bosses on the taskforce who had anointed the prime minister couldn't be expected to attack carbon pricing.
The report made one recommendation in relation to the carbon tax - to ameliorate the impacts of the carbon price to boost the competitiveness of the industry.
Australian Industry Group chief executive Innes Willox said the carbon price and workplace relations needed a separate discussion.
Pressures on the sector were tremendously challenging, with a sharp fall in unemployment and factory closures but there were incredible opportunities, Willox said.
"The heart of this report goes to finding ways to improve Australia's industrial productivity," he said.
The government has moved to immediately improve collaboration and industry sharing arrangements between industry and researchers.
It will respond to the report in a statement in the last quarter of the year.
Prime Minister Julia Gillard was on Thursday handed a report by the Manufacturing Industry Taskforce she appointed late last year.
Among its 41 recommendations were calls to bring forward and increase investment in infrastructure projects, further stimulus in residential and commercial building markets and an expanded plan to encourage local participation in supply contracts.
The taskforce, made up of industry leaders and union bosses, also called for a reduction in business tax burden.
Gillard backed the report in principle but was quick to rule out any support for recommendations to further investigate a sovereign wealth fund and a domestic reservation policy for gas.
The sector faced acute pressures, particularly because of the strength of the Australian dollar, she said.
It is changing business models in manufacturing, bringing pressure on manufacturing but also an era of tremendous opportunity," she said.
"Don't let the pessimists say that we can't have a future in manufacturing."
Australian Manufacturing Workers Union national secretary Paul Bastian said Australia had lost 100,000 jobs or 10 per cent of its workforce capability in the last five years.
A further 85,000 jobs are at risk in the same period ahead.
The biggest problem was the high Australian dollar, which is going to remain high for a while, Bastian told reporters.
"Anything the government can do to bring the dollar down, we say, should be explored," he said.
Australian Council of Trade Unions secretary Dave Oliver said the report was not a "silver bullet" but it marked the start of a process to improve conditions for local manufacturing despite significant challenges ahead.
"This is a blueprint or a road map for the future and it will only succeed if we continue to engage constructively and work together," he said.
Opposition industry spokeswoman Sophie Mirabella said the report was another example of the prime minister outsourcing the basic responsibility of making policy.
"The taskforce's report is very disappointing in its limp response and I don't have any confidence there will be any decisive action from the government coming out of this report," she said.
She said the report was horribly compromised because the union bosses on the taskforce who had anointed the prime minister couldn't be expected to attack carbon pricing.
The report made one recommendation in relation to the carbon tax - to ameliorate the impacts of the carbon price to boost the competitiveness of the industry.
Australian Industry Group chief executive Innes Willox said the carbon price and workplace relations needed a separate discussion.
Pressures on the sector were tremendously challenging, with a sharp fall in unemployment and factory closures but there were incredible opportunities, Willox said.
"The heart of this report goes to finding ways to improve Australia's industrial productivity," he said.
The government has moved to immediately improve collaboration and industry sharing arrangements between industry and researchers.
It will respond to the report in a statement in the last quarter of the year.
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