Sussan Ley (Farrer, Liberal Party, Shadow Minister for Women) Share this | Hansard source

I rise to oppose the Future Made in Australia Bill 2024. Those opposite may have a selective memory. Perhaps it may be because much of their election policy platform has been scrubbed from the internet. But this bill and all its promises sound very familiar, indeed. This bill and the rhetoric behind it churns out the same empty promises our manufacturers were given almost word for word by Labor before the last election. In fact, guess what the name of the policy was on the webpage? Yes, that's right—'A Future Made in Australia'. This government's latest promises made in this place over recent days offer cold comfort to our manufacturers, because they have been living through two years of Labor failures. Our hardworking manufacturers and the Australian public were given this exact sell just over two years ago. I've met with them and they are over it. They don't need more hollow promises; they need a break. The Prime Minister made all sorts of commitments at the last election, but his shallow promises to manufacturers are plain for all to see.

Here we are, 2½ years on, and they have spent $8 million running the National Reconstruction Fund. They just forgot to spend the money on actual manufacturing projects. This is what they promised at the 2022 election. The then opposition leader and now Prime Minister said:

At the end of the first term of a Labor Government, when we reflect on what we have built, we'll see this … an economy that makes more things here at home, powered by cheap renewable energy.

The exact opposite is true, with our manufacturers paying among the most expensive energy prices in the world. How can Labor promise a future made in Australia if they can't keep the lights on today?

Instead of a stronger economy with cheaper power, Australia faces a manufacturing insolvency crisis, with insolvencies tripling since Labor came to office. The Prime Minister also said of his National Reconstruction fund that it will 'rebuild Australia's manufacturing base', while the now Deputy PM prophesised:

Only Labor will ensure we come out of the pandemic stronger through bringing manufacturing home.

Any reading of the economy will tell you otherwise. The NRF is still yet to spend a single cent on a single project. So, if that's the lived experience since they took office, how can we trust anything they say on this legislation?

Here they are, yet again, making commitments on manufacturing and saying to Australians, 'Trust us.' The government has had two years to demonstrate how they will rebuild manufacturing in Australia. Instead of delivering a proper economic plan, we see economic conditions continuing to deteriorate. Industry reports anaemic growth rates that are at or near their lowest levels in a decade. That clearly doesn't bother the members opposite. Are those opposite acknowledging or responding to a reported decline in new orders at the largest rate since the global financial crisis? No. Neither are they concerned about invoice defaults sitting at record highs. All we get is silence when we hear of manufacturers going bust.

Large institutions in our industry landscape like Qenos, Bosch or Alcoa have made difficult decisions as a result of this government's policy failures, with whole supply chain implications such as the announced closure of Sydney chemicals manufacturer Indorama. A furniture-making company in Dandenong, MadeCo, who recently entered administration, said:

… we've weathered many storms, but unfortunately, some waves hit harder than others. The challenges brought on by the pandemic were tough enough, and the recent downturn in the residential cabinetry market, coupled with the closure of two major account clients has made our journey even more arduous …

The building supply chain is very much feeling the pain, and manufacturer LUTUM going into voluntary administration is just another sign of that. It brings me no great pleasure, but I want to share the comments from the administrators:

This is a manufacturing business exposed to the building and construction sector. It's got all the problems of manufacturing plus all the problems of a building supplier.

And what are we told by this government? That they want to double down on their failed policies. They look at the past two years of inaction and failure and say, 'We want more of that.' Make no mistake: that is the choice that we are being provided here, and the track record of this mob fills no-one with confidence.

The Treasurer asserts that it would be 'an egregious breach of our generational responsibilities as a government if we didn't play this winning hand,' with reference to this bill. It's the sort of stuff you get from a bloke with a PhD in politics, not in economics. He loves to sell his policies; he just doesn't understand them. Well, let me give some free advice to this Treasurer from someone who has actually worked in a blue-collar job with hardworking men and women. Treasurer, what would be an egregious breach of your government's responsibility is not responding to the conditions that I've just outlined.

Manufacturers are struggling. Aussie families are struggling. Australians have endured 12 mortgage rate hikes under this government, with little to no support. Real wages for employees have dropped by nine per cent, and living standards have collapsed by eight per cent. Household savings are down by 10 per cent, all while the prices for food and groceries continue to rise and are up by more than 11 per cent. Over 116,000 Australian households are on electricity bill hardship payments, with 600 new households entering hardship plans each week—each week—to try to pay for their power prices. Because of this government's bungled energy policies, Aussie industry and households now pay at least 22 per cent more for their electricity, and this government's reckless approach to gas has led to drastic hikes in the price of gas, essential for most manufacturing operations. Under Labor, 90 per cent of our 24/7 baseload power will be forced out of the system. As manufacturers choose to shut down, unions have been given the green light to rise up. Emboldened by new, retrograde industrial relations laws, unions continue to be the kingmakers for those in the modern Labor Party. Is it any wonder that productivity has fallen by over five per cent under the Labor government? It's telling that the Treasurer did not mention productivity once in his budget. This is not the target of this bill. The government just keeps adding fuel to this inflationary fire, and this Future Made in Australia policy is proof positive of that.

There are also some key questions of this bill that show just how disingenuous this government really is. Their budget has already committed to a number of programs under this Future Made in Australia umbrella. Take the Hydrogen Headstart program, the Solar Sunshot program and even the PsiQuantum deal as examples. Knowing full well that these programs would be part of their Future Made in Australia package and knowing full well that this legislation would institute a new National Interest Framework and so-called independent sector assessments and community benefit principles, why did this government choose to power ahead without these three key pillars being applied to the aforementioned spends? It looks dodgy to me. They are failing their own standards before they even legislate them.

We also have serious questions about what this all means for the National Reconstruction Fund. What will happen to the independent investments by the National Reconstruction Fund if they're subject to the Future Made in Australia additional assessments? We're in a position whereby the department of industry will have a sector assessment via co-investment plans, as will the Treasury via a sector assessment, and so too the NRF Corporation with their investment considerations. That's three lots of assessment from three different entities. Have they even considered how that would work? How can the NRF be independent if government-initiated advice curtails or supersedes their investment decisions? Who is in charge here? Is it the Treasurer or is it the minister for industry? The problem for Australians is, if you ask them, they will tell you it's both, because even though those two don't like each other, they do share the same trademark arrogance. While I can appreciate why the government have removed ownership of this legislation from the inept and incompetent industry minister, the member for Chifley, this transfer to treasure Treasury poses more questions than answers.

It also remains unclear how exactly the new frameworks in this bill will interact with existing frameworks such as the National Reconstruction Fund priority areas or, indeed, ARENA's publicly listed priorities. In the Treasurer's second-reading speech he boldly claimed that this bill reflects a new economic orthodoxy, yet economists have come out in droves backing in the coalition's approach—stick to the economic fundamentals, the basics which our manufacturers demand. This is the whole problem with this Treasurer—while he's out there trying to remake capitalism, Australians just want him to do his job.

Labor have failed on the fundamentals. They failed to provide the skilled workers in the industries that need it. Anthony Albanese was elected on a simple promise—that he would skill more Australians. Yet, since Labor took office Australia has 85,000 fewer apprentices and trainees—a loss of one in five—and new training starts have dropped by 39 per cent. The last grandiose promise—the National Reconstruction Fund—was sold as a $15 billion fund to support manufacturers, but as manufacturers continue to go bust the fund, which has not committed a dollar to a single project, has instead topped itself up in this last budget with $18 million more for this new bureaucracy.

We also see the government's industry growth program—a $400 million program—spend a quarter of its budget on bureaucracy, not manufacturers. They recently announced five recipients—just five—no doubt worthy ones doing worthy things, but cold comfort to the thousands of manufacturers struggling to make ends meet and keep the lights on. Instead, this government will do what it always does: issue media releases that might sound good but that offer little practical support.

We see a clear example of how Labor actually thinks about manufacturing when we look at what they do, not what they say. Labor was caught out ripping off the 'Australian made' logo for political profit. Many in this House would be familiar with the iconic green triangle with the golden kangaroo—an instantly recognisable symbol and guarantee of Australian-made quality. It's highly trusted, with 89 per cent of Australians more likely to buy a product if they know it is Australian made, thanks to the strength of that branding. The logo is a registered trademark, and as such its use is strictly controlled. We uncovered a calculated campaign from Labor to use the 'Australian made' logo in party political material to spin its Future Made in Australia policy. Disgracefully, Labor tried to deliberately profit off the trusted 'Australian made' brand. That is how they see Australian manufacturing; as something to win them votes.

That is what this whole exercise is about—Labor trying to win an election, not build an economy. That is why the coalition opposes this bill. Labor do not have a proper plan to get the settings right for Australian manufacturers. We will continue to stand up to the false promises offered by this bad Labor government and instead offer a better way with a focus on getting the fundamentals right to get Australia back on track. I thank the House.

See this speech in context