Dai Le (Fowler, Independent) Share this | Hansard source

I rise to speak on the National Reconstruction Fund Corporation Bill 2022. I want to thank Minister Ed Husic for giving me the opportunity to discuss the NRF bill with him. It is my understanding that the purpose of the bill is to resurrect Australia's industrial and manufacturing capacity. I'd like to believe that the bill will set the foundation for the start of a new tomorrow for local manufacturing, even if it's small, such as small packaging-manufacturing companies like Pakko, set up by Nina Nguyen, a former constituent of mine who migrated to the Sunshine State to start this business so that local businesses can order packaging boxes in small quantities rather than having to order in bulk and wait for shipping containers. She's also creating employment opportunities in Geebung in Queensland. If we had a manufacturing hub in South-West Sydney, in Fowler, and the government support that this bill is proposing, I'm confident that Pakko would have been growing in South-West Sydney instead.

I believe in local manufacturing, and on that principle I support the bill. But I also understand the challenges that many big manufacturing companies have in setting up in Australia, due to the costs involved and the fact that Australia, although big in land mass, is small in population compared to other developing nations. Nevertheless, I believe that the government can step in to provide support for small local manufacturing companies like Pakko to thrive and be competitive, at least locally.

If the government is genuinely committed to supporting the growth of an industrial and manufacturing sector in technology and medical research then I call on the minister to really explore the possibility of creating such a hub for New South Wales in my electorate of Fowler. My electorate proudly boasts one of the largest family-run manufacturing businesses, based in Villawood. It is leading the way in the production of essential medical supplies. I visited Multigate's facility soon after my election in May last year to see the work that this company is doing, manufacturing critical medical supplies that service nearly every hospital in Australia. Their products include PPE, IV tubes and medical and surgical procedure packs that are vital to the day-to-day running of medical practices and hospitals. Peter Chang and Sam Chaisumdet founded Multigate with Ben Chen, and during the COVID pandemic they prioritised our local Australian hospitals over other profit channels to benefit Australians and Australian frontline workers. Two years on from the pandemic, Multigate continues to heavily invest in R&D to provide innovative excellence. Their Cadence suction irrigator, which assists surgeons in keyhole surgeries, is a product that has won awards for its design and innovation. Can I say, as someone of refugee background, that to know that Multigate, also from a refugee background, is contributing back massively to Australian society just shows that we, as a refugee community, play a huge role in our new home country once we've overcome the challenges of resettlement.

Multigate is just one established company in south-west Sydney who could benefit from the NRF bill funding, and I'm looking forward to seeing the investment mandate and how it will benefit this sort of company, although I would rethink my position if the unions were to start making IR stipulations within the bill. I just want to emphasise to the government that they should consider the challenges faced by many small businesses in the current economic climate. I would hope the bill protects small and medium enterprises so that they don't require union involvement to apply for funding, because it would mean that many businesses in my electorate of Fowler would be at a serious disadvantage. Most businesses in my electorate do not have the capacity for enterprise bargaining obligations, and in the end it would mean that we as Australians would lose the opportunity to grow our local manufacturing industry.

Companies like Multigate are a success story, but I also hope that the bill doesn't just provide for established businesses. It's important to acknowledge that innovation also comes from young startup entrepreneurs who just need the right backing at the right time. Business success isn't always about the idea itself; it is about who is willing to believe in the vision. Even if you have the most innovative of ideas, you still need the financial support. I would hope that the NRF provides equal opportunity for companies of all sizes and from across the community and the country. I will be championing those entrepreneurs and innovators in my division. It's disappointing, though, that the fund has not legislated for money to be put aside specifically for small and medium-sized enterprises. I want reassurances that this isn't going to help the big end of town and will go to truly worthy startups and manufacturers.

One Australian startup company that would benefit from this is Opuz, who recently reached out to my office with their aspirations to set up in my electorate. With their patented smart ring technology, diabetics will no longer need to prick their finger to monitor their glucose levels, which is a painful process, as we all know. Nearly 1.2 million people across Australia have either type 1 or type 2 diabetes, with south-western Sydney having the highest rate of diabetes across the country. Technology like this could change thousands of lives and improve the general wellbeing of many diabetic patients. The Opuz founders, directors and staff also reflect the rich multiculturalism in south-western Sydney. This cultural diversity allows us to draw on the experience of international communities for collaboration, like both the United States and Israel, who lead the world in technology research and development because of the wealth of diversity represented in their R&D sectors. We can look to their examples to become truly globally competitive.

Manufacturing is one of the biggest employment sectors in Fowler, ranging from food processing to medical supplies, building materials, woodwork and recycling. I for one disagree with those people who believe that manufacturing in Australia is a dying sector and there isn't any reason for intervention in an industry that is becoming irrelevant. Those people want us to rely on cheap imports instead of locally made products. Now is the time to reinvigorate our manufacturing sector. Without local manufacturing, we become reliant on external forces, which was painfully evident during the COVID pandemic, when our country all but came to a complete halt. People in New South Wales relied on our local drivers to deliver food and our warehouses to continue making goods; however, that was not enough to sustain our economy.

Even as we recover from the impacts of the pandemic, we are still feeling the hurt from the devastation it left behind. The aftermath of the pandemic showed a glaring flaw within the Australian economy. We were not sustainable without our import market. But we have the power to change that. Two years on, we are still seeing unprecedented material supply shortages as a result of the pandemic. It is up to us to ensure this never happens again. As I have said, in principle I support the NRF funding that encourages local manufacturing; however, any such bill must address the skills and labour shortages we are currently experiencing, especially within the manufacturing sector.

I recently met with Simon, a local mechanic who owns a tyre shop. He told me that it is increasingly difficult to import tyres from overseas due to logistics and cost and, at the local level, he is struggling to find skilled workers. He said: 'I have been in business for over 27 years and it's been a family business for 45 years. We have seen it all, from a number of recessions, high fuel costs, interest rates well over 18 per cent, import shortages and COVID—but this is the worst we have seen. The government seems to be throwing money at it by giving us incentives, but we don't need money; we need people to come to work to make money.' Therefore, in order for our manufacturing industry to get back to work, we need workers, not just money.

A 2021 report by David Gonski and Professor Peter Shergold into the VET sector points out the societal shift from the VET sector to higher education due to negative perceptions. VET graduates are no less valuable than university graduates. After all, university isn't everyone's cup of tea. Some people are more entrepreneurial and may prefer to start their own business after high school or TAFE so they can work their own hours while earning a decent salary. We need to shift the public discourse around VET courses to let future generations know that they do not need to go to university to be considered successful.

I understand the Institute of Applied Technology has been set up in New South Wales to tackle this issue. This gives VET participants the opportunity to upskill via microcredentials so they can start shifting into the innovative technology sector. The microcredentials pathway is very important. I ask that the government bring together VET, universities and businesses to ensure we do not have workforce shortages once our advanced manufacturing industries get set up. I hope they do get to start the process of setting up. There's no point in having innovative products if there's no-one around to build or run them.

The pandemic also demonstrated the need for the government to establish a centre for disease control so that we can better prepare for health crises across the country. In a submission to the minister, Research Australia suggested:

The Ministers should obtain the advice of a future Centre for Disease Control about medical products for which there is a critical unmet need for domestic manufacturing.

I do not want to see my community go through what we did in 2021 ever again. I call on the government to implement a centre for disease control as a matter of urgency, utilising the NRF bill funding. I think we can all agree that the health of the nation should be our No. 1 priority. As for the return on investment, I agree with Research Australia, who said that it shouldn't be considered in this particular instance. After all, the 'return on investment' from medical research is, first and foremost, the health and wellbeing of our citizens and, second, softening the financial impact on our economy should another health crisis happen.

I understand another priority area the government is exploring is the clean energy and renewables sector. I commend Minister Husic's plans to boost research and development and encourage local development of such technology. As we are to move towards a more renewable future, we must find the means to manufacture it here in Australia. There is no reason why we shouldn't right here in Australia be manufacturing electric cars, buses and other modes of transport. It would reduce the manufacturing and supply chain costs and environmental costs, which would ultimately benefit middle Australia.

I'm sure many of you in this House know that lithium plays a critical role in the clean energy sector. Australia is one of the world's biggest lithium exporters, exporting about 60 per cent of its reserves. At the moment we export lithium for extracting and refining. Then that gets exported again to another country to make batteries to be installed in EVs. Then those cars get exported to Australia. It just doesn't make sense. If we take measured approaches to ensuring that we have a sustainable long-term manufacturing economy then we have the potential to be leaders in the renewable manufacturing sector.

I can see the potential of the NRF bill to boost the economy in Fowler and the whole country. Although to truly benefit all of us, we must think outside of the box, support new ideas, embrace innovation and be willing to take risks. After all, the same industries overseas have shown that diversity of backgrounds leads to the best outcomes. With that in mind, I was glad to get reassurance from the minister—it's only reassurance—that the board will have people from culturally and linguistically diverse backgrounds and with personal experience in this sector. It is an assurance. Whether or not that's going to be implemented is another question, but I take comfort in being reassured.

As we look to develop innovation and manufacturing in Australia, let's go west. Go to south-west Sydney, where we have the people, the energy, the cultural diversity, the talent and the potential to reignite the manufacturing sector in Australia. Our ability to innovate and to develop infrastructure will enable us to be first-class manufacturers locally, even if it's small; nationally, if we can grow big; and across the globe.

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