House debates

Wednesday, 19 March 2014

Bills

Export Market Development Grants Amendment Bill 2014; Second Reading

4:29 pm

Photo of Lisa ChestersLisa Chesters (Bendigo, Australian Labor Party) Share this | Hansard source

I will continue the remarks I was making about the Export Market Development Grants Amendment Bill 2014 before the debate was interrupted. The reality is that these grants will help the manufacturers and producers in the Bendigo electorate. Exporting brings jobs and security to the local community in Bendigo and in central Victoria and helps the long-term economic viability of the region. Innovation, quality and diversity are the driving forces behind our region's successful manufacturing and mining sectors. This has seen the emergence of a wide variety of small to medium businesses—the exact group that these grants aim to target—many of which operate in niche markets, or are hoping to.

The manufacturing and mining sectors produce financial rewards in the City of Greater Bendigo area worth $2.8 billion annually, or 27.5 per cent of the city's total economic output. To say they are important is an understatement; they employ almost 7,000 people. Seven thousand people work in our local manufacturing areas, so to say that it is a dark day in manufacturing in Bendigo would be wrong. The doom and gloom that we often hear about manufacturing is not happening in my city or in my region.

However, this success did not happen overnight. In fact, it had its beginnings as far back as the gold rush days in the middle of the 19th century. We have been producing mining equipment in Bendigo since the very early days of mining in this country. Bendigo-based manufacturers provide a wide diversity of products from armoured vehicles like our famous Bushmaster—and, hopefully, the son of Bushmaster, the Hawkei—to residential, commercial and industry turntables. These turntables travel from Kangaroo Flat to the great cities of the world to be used in restaurants, car dealerships or everywhere and anywhere that will purchase them. They produce everything from diesel locomotives to drill rigs, stone crushers and even the body armour that our troops wear in combat overseas.

I should also mention the fantastic fresh produce that is produced locally, as well as our beverage products such as wine, cider and craft beer, which are all manufactured and produced locally by our small to medium businesses. These products are currently being exported, and we hope to have more exported which is why these grants are so important.

An example of excellence in metal and engineering manufacturing is Keech castings. Keech castings is a company based in East Bendigo that produces 3-D technologies and 3-D printing which, I am told, is unusual for a city like Bendigo. I was at a breakfast this morning with the CSIRO where they were talking about this being a cutting-edge new niche industry and the future of manufacturing. I am so proud to be able to say that we already have these facilities, this capability and this technology in Bendigo. Keech's chief executive, Herbert Hermens, said that these printers would allow objects to be created quickly and cheaply and sourced in Australia. They are currently exporting this product all over the world. This company is exporting more and more produce every day, which is exciting for Bendigo, exciting for Keech castings and exciting for our country.

The technology works by making a solid 3-D model of an object designed by a computer program. The printers can be used to create car parts, aeroplanes, prosthetic hands and even the smallest of screws. We are told that this is the future of manufacturing—it is the revolution. Some are saying that it is the new industrial revolution of manufacturing. We are proud to say that Bendigo is one of the first places in the world to do it.

As I have flagged, another major area of manufacturing and production in our region is food and beverages. Whilst some know Bendigo for its poultry industry, we have some other major producers in dairy and bread-related products. Bendigo also has many businesses and manufacturers in wine, baking, coffee roasting, olive oil processing, honey, preserves, sauces and the list goes on. One that I would like to highlight to the House is B&B Basil. A father and daughter team got together in 2000 and noticed a lack of locally grown herbs at the local markets. George Bobin and Susie Young decided that they would get together and start growing their own hydroponic basil. This quickly grew to be an expanding market that included many micro herbs. Today, B&B Basil export to China, Japan and Hong Kong and they have been able to do this through the support of their local Austrade representative and through these export market development grants. These grants helped them establish their markets overseas.

Outside Bendigo, we have a number of other successful producers and manufacturers in the Macedon Ranges and Mount Alexander, which are shires that are known for their wine, craft beer, olives, cheese and other small produce. Right now, their markets strong locally and nationally, but they need that extra support to make it into the international markets.

I am quite often reminded by our local manufacturers that it needs to be the choice and the call of a manufacturer to take the plunge to step outside our own economy and step into the global economy. It is something that people do not take lightly. It is a challenge for a manufacturer to say, 'Yep, I'm going to compete globally.' It is important that they do though. It is important that we do see our manufacturers do that because, when they are successful overseas, it creates more jobs in our region and means that these businesses will continue to prosper and grow and create more wealth for our regions.

That is why it is important that we support them at every step, including through these grants, so that if they choose to make that choice they have the support. Labor has a proud record of supporting trade and boosting economic growth for our local industries. In fact, as I mentioned earlier in my speech, the Export Market Development Grants Scheme was a Labor initiative started back in the Whitlam days.

Many of the manufacturers in my electorate have taken advantage of these opportunities already, with every year a number of organisations, of manufacturers, of producers and of businesses putting their hands up and receiving these grants. In May last year, a company called Southern Cross Feeds, who prepares animal and bird feed, received a grant of about $9,000. A motion picture and video production company in Malmsbury received a grant of just under $40,000. Malmsbury is an area which is just north of Kyneton. It is usually known for its juvenile justice facility, but it is also known for its railway station. It is great to see another industry starting to grow in that area—that is, a motion picture and video production company that is now exporting overseas thanks to these grants. The Davidson Brothers in Bendigo is another creative arts organisation that received a grant, of just under $20,000k for creative arts musicians, writers and performers. This is another example of a growing industry in Bendigo—that is, our cultural economy. If we are serious about seeing people employed in the cultural economy, then we need to get behind them just as much as we get behind our manufacturers. Keech castings, whom I mentioned before, received a grant of just over $50,000. The Edge Equine received a grant for professional and scientific goods wholesaling. There is a lot that goes on in my electorate when it comes to manufacturing, producing and exporting our goods. That is why it is important that we continue to support these industries through the grants that we are speaking about today.

In conclusion, whilst I support the bill, I also want to express my disappointment that all references towards the Asian century have been dropped. All of these companies that I have spoken about who have been successful in their grants—whether it be B&B Basil, working with the paddock to the plate; Keech castings with their castings or with their 3D imaging; or our cultural economy—are exporting to Asia. We are in the Asian century, so it is disappointing to see any reference to the Asian century dropped—dropped not just from this bill but entirely from the new government's focus and priority.

Labor recognises that our future prosperity is underpinned by our engagement in our region. We cannot ignore our neighbours. They are our closest trading partners, and we should continue to engage with them. This is why it is so important that the new government pick back up the Asian century paper and we continue on that path. By the end of the decade, our region is expected to overtake the combined economic output of North America and Europe. We have a unique opportunity that other countries in the world do not have. We are in the region that will boom, and it is important for us to take the opportunity to be engaged. Our businesses will have access to expanded and emerging markets, with Asia set to become the world's largest consumption zone by 2030. That is why it is so important that we maintain a policy agenda in which Australia supports our manufacturers getting into Asia.

Labor's amendments introduced last week sought to realign these grants to support small businesses exporting to the emerging markets in East Asia. It is important to be at the front of this. It is important that we support our manufacturers and companies that wish to trade and export to Asia. Many of the manufacturers in my electorate have taken the opportunity in the past—and I know that they wish to do so in the future. This is why it is so important that we continue to support the manufacturers, particularly in the regions. As I have said throughout my contribution today, manufacturing and production and producers are still a major employer in my area. These are Australian businesses based in our electorates that are keeping local people employed. We want to continue to see these local people employed. It is not just about having a strong local economy, nor about having a strong national economy; it is also about having involvement and engagement overseas.

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