Michelle Landry (Capricornia, National Party, Shadow Assistant Minister for Manufacturing) Share this | Hansard source

Another day and we have another bill from Labor full of spin, devoid of detail and delivering no immediate relief for Australian manufacturers. The Future Made in Australia Bill—or MIA as it's aptly named—is yet another example of Labor's policies, which are missing in action when it comes to delivering real support for Australian families, small businesses and farmers, who are struggling under the crushing weight of a government that is driving up the cost of living and has no regard for Australians doing it tough as a result. After 12 interest rate hikes, facing some of the most persistent core inflation in the developed world and dealing with higher taxes, Australian families shouldn't have to bear the cost of Labor's re-election strategy.

Despite all of the rhetoric, this legislation fails to address the most pressing needs of those who keep our economy going. When you get into the detail of the Future Made in Australia Bill it is glaringly obvious that Labor has once again fallen short in the fundamentals required to foster business growth and development. Where is the meaningful action to reduce the burden of red tape that strangles innovation and where is the tax reform that our businesses so desperately need? The bill does nothing to alleviate the skilled worker shortages that are hampering industries and it fails to provide any credible plan for driving down inflation, which continues to erode the purchasing power of everyday Australians.

Let's not forget the critical need for clean, affordable and reliable energy, which is a cornerstone for any thriving economy but is conspicuously absent from this legislation. Labor shows their lack of understanding of the business sector and has missed the mark on every account. Instead of empowering our businesses to grow, innovate and compete on the global stage, this bill is yet another missed opportunity and another failure to grasp the basic economic principles that our nation needs to succeed.

The harsh reality is that the bill does nothing to alleviate the immense pressure that manufacturers are facing due to the ongoing economic mismanagement by this government. For far too many Australian manufacturers the damage has already been done. It's simply two years too late. Under the oversight of this government we've witnessed an alarming surge in insolvencies within the manufacturing sector, with numbers having tripled in a short span. Since Labor took office, approximately 19,000 businesses have entered insolvency, marking the highest number recorded since ASIC began collecting this data. Productivity has plummeted and businesses that have been the backbone of our economy for generations are struggling just to keep their doors open and workers employed.

This bill is not an isolated failure. It's part of a broader pattern of ineffective policies that have consistently missed the mark. Take, for instance, Labor's much touted $15 billion National Reconstruction Fund. Despite all the grand promises, this fund is still yet to deliver a single dollar to actually help businesses grow, innovate or develop. This absence of delivery is a stark reminder that under this government bold headlines often failed to translate into real-world action and results. Our manufacturers deserve better. They deserve policies that will genuinely support growth, enhance competitiveness and secure their future. Unfortunately, this government's track record shows a continued failure to deliver on those needs.

It is important to note that it's not just my colleagues and me in the coalition who are sounding the alarm on this desperate and ill-conceived policy. The concerns are being echoed by those on the frontline of our economy, including manufacturers not only in my electorate of Capricornia but also from every corner of Australia. In countless meetings and discussions the message from these industry leaders has been consistent and clear: this policy falls woefully short of delivering the competitive edge that Australian manufacturing so desperately needs. They understand the challenges of the global market and they see that this policy does nothing to equip them with the tools necessary to thrive and compete on the world stage.

The voices of these manufacturers should not be ignored. Their expertise and firsthand experience underline the serious flaws in this approach. Jack Trenaman, a local business owner and manufacturer in my electorate of Capricornia, has expressed a deep concern that echoes throughout the manufacturing sector in Australia. He's witnessing firsthand the devastating effects of rising electricity costs, fuel prices and overwhelming red tape which are driving his business into the ground. According to Jack, manufacturing businesses across the country are watching in dismay as the industry they've built and sustained for years is slowly disappearing under the weight of these crippling expenses. Jack's business, SMW, is now one of only three remaining mining truck trade manufacturers in Australia, a stark indicator of how dire the situation has become. Despite the booming demand in our mining industry, driven by coal exports and critical minerals, Jack finds himself struggling to compete with international markets.

It's astonishing to think that while our mining sector is thriving our local manufacturers are being outpaced by overseas competitors who can produce the same products at a 30 to 40 per cent lower cost. This situation lays bare the glaring disconnect between the policies being implemented and the harsh realities faced by our manufacturers. As Jack put it to me, Labor policies are nothing short of a shackle on the industry's productivity. Instead of enabling growth, these policies are tying the hands of our manufacturers, making it increasingly difficult for them to keep their doors open, let alone thrive. Jack's experience is not an isolated one; it's a reflection of a broader systemic failure that needs urgent attention if we are to preserve a future made in Australia.

Australia has a long and proud tradition of excellence in manufacturing, and the coalition has always been at the forefront of supporting this vital industry. Under our modern manufacturing strategy we didn't just talk about supporting manufacturing; we took decisive action. We were actively expanding and modernising our sovereign manufacturing capabilities, making strategic investments to secure critical supply chains and ensuring that businesses like SMW had access to the skills and world-class research needed to drive further expansion and growth.

Our approach was about empowering Australian manufacturers not only to compete but to lead on the global stage. The results were clear: under our strategy, the industry was thriving, with businesses seeing real, tangible benefits from our policies. This stands in stark contrast to the government's current National Reconstruction Fund, which has thus far proven ineffective in delivering the support our industry desperately needs. While our policies were producing measurable successes, the National Reconstruction Fund is yet to provide the necessary resources and backing to ensure the continued strength and competitiveness of Australian manufacturing.

The difference is clear. Whereas we invested in growth and modernisation, the current government's approach has fallen short. Leading representatives from key business peak bodies have voiced serious concerns regarding the Future Made in Australia Bill, reflecting a growing unease within the industry. The Business Council of Australia, for example, submitted a detailed critique to the Senate inquiry highlighting significant flaws in the bill's restrictive design and rigid eligibility criteria. They warn that these constraints could severely limit the support available for projects. This could have the unintended consequences of pushing valuable opportunities overseas, depriving Australia of critical economic benefits and job creation.

Adding to their concern is the bill's narrow and inflexible community benefit principles, which introduce yet another layer of red tape into the investment process. These principles make it exceedingly difficult for potential applicants to navigate the system, deterring many from even applying. The business council fears that this additional complexity will stifle innovation and limit the bill's overall effectiveness in bolstering Australian manufacturing and industry.

The Australian Chamber of Commerce and Industry has also raised alarms, particularly over earlier extensive announcements of projects that have already been allocated funding under the Future Made in Australia Bill. Labor has publicly championed a $4 billion investment in the Hydrogen Headstart program, over $6 billion in hydrogen production tax incentives and a $1 billion commitment to Solar Sunshot solar panel manufacturing. However, these precommitments alone total an overwhelming $19.4 billion, leaving just $4.5 billion available for new projects over the next decade. This imbalance raises serious questions about the bill's ability to adequately support emerging industries and new innovation.

The Australian Chamber of Commerce and Industry encapsulated their broader concerns in their submission, cautioning that 'there is a risk that the bill's focus on new industries might undermine existing sectors that are crucial to Australia's economy. It is vital to support industries where Australia has a competitive advantage.' This statement underscores a profound worry that the bill's current focus could inadvertently weaken established sectors that are essential to our nation's economic stability and growth. These warnings from peak bodies reflect a broader disconnect between the bill's intensions and its practical implications. It is crucial that these concerns are heeded if we are to avoid undermining the very industries that have long been the backbone of Australia's economy.

The Future Made in Australia Bill, while seemingly designed to bolster our manufacturing sector, falls significantly short of addressing the real challenges faced by Australian businesses. This legislation in its current form is a missed opportunity, one that fails to deliver the necessary support for our manufacturers, who are the lifeblood of our economy. The restrictive design, excessive red tape and lack of tangible benefits underscore a disconnect between the government's promises and the harsh realities on the ground. Our manufacturing industry has a proud history and remains crucial to our national prosperity. Yet, under this government's watch, we've seen insolvencies skyrocket, productivity plummet and businesses struggle to keep their doors open. The coalition, through our Modern Manufacturing Strategy, demonstrated what is possible when government policy aligns with the needs of industry. The tangible benefits of our approach stand in stark contrast to the ineffective policies currently being put forward.

Additionally the concerns raised by peak industry bodies should not be dismissed. The warnings from the Business Council of Australia and the Australian Chamber of Commerce and Industry highlight the real and present dangers of this bill. They have pointed out the flaws in this bill's design, the risk of pushing projects overseas and the potential undermining of existing sectors vital to our economy. These are not just theoretical concerns; they are grounded in the lived experiences of those who are on the front lines of our manufacturing industry every day. It is imperative that we learn from these insights and adjust our course accordingly. The focus must be on creating policies that genuinely support and enhance our manufacturing capabilities. We need policies that return to the fundamentals and set us back on the right path by curbing inflationary spending, reducing bureaucratic red tape, simplifying Labor's complex industrial relations agenda, lowering taxes and implementing a competition policy that truly gives small businesses a fair chance. Most importantly we must ensure the delivery of affordable and reliable energy. We must ensure that the industries where Australia has a competitive advantage are not only preserved but empowered to thrive in an increasingly competitive global market.

Let us not forget that the future of Australia's manufacturing industry depends on the decisions we make today. We owe it to our manufacturers, to our workers and to all Australians to get this right. This bill in its current form is not the solution. It's time for a rethink, a realignment with the needs of our industry and a renewed commitment to policies that will truly drive growth, innovation and prosperity.

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