Michael Sukkar (Deakin, Liberal Party, Shadow Minister for Social Services) Share this | Hansard source

The Labor government really needs to understand that the building blocks to manufacturing in this country are affordable and reliable energy, flexible workplaces—great wages but flexible workplaces—less regulation, and an incentive based tax system. They're the building blocks for manufacturing in this country, and on every single one of those building blocks of strong manufacturing this government has made things worse.

Affordable and reliable energy is a component in every single aspect of manufacturing throughout the supply chain in this country, yet we see the costs of energy rising throughout the nation, notwithstanding the fact that there were commitments from every single one of those opposite that electricity prices would drop if they were elected. We all remember and know that the Prime Minister—on 97 occasions, no less—promised to reduce household energy prices by $275 a year—let alone reduce wholesale energy prices for large manufacturers.

What have we seen since the election? We've seen energy prices increasing exponentially. In fact, I was with a truss manufacturer. An area that I would say is a bright spot in this country is manufacturing that supports our residential construction industry. Truss manufacturing in this nation, utilising, in most cases, Australian timber, is a bright spot, but this particular truss manufacturer I spoke to has said that his monthly energy bills in his business have risen from $15,000 a month to $40,000 a month. What happens with that increase of $25,000 a month on that input into every single truss that he manufactures? Well, that just finds its way into the price of that product. That product then finds its way into the home, and guess who bears that cost in the end? It is the buyer or purchaser of that home. In many cases, it is first home buyers who will ultimately bear the cost.

It's not just the additional input costs of that truss that that first home buyer in many cases is bearing; it will be the increased energy costs in the bricks and the increased energy costs in the tiles for the roof—the increased input and energy costs into every single component of that home. So you don't assist manufacturing in this country by increasing energy prices on every single step of manufacturing in this country and then playing a two-card trick and saying, 'We'll support some hand-picked businesses here and there.'

We were speaking in this chamber about the CFMEU tax on housing—the CFMEU tax aided and abetted by every single member sitting opposite me, who has personally benefited from the CFMEU in one way, shape or form, whether it's through their pre-selection or whether it's through donations to the Labor Party. Where do those donations come from? Ultimately, the CFMEU extorts them out of law-abiding individuals, businesses and, ultimately—in many cases—first home buyers, who have to pay more for that home. That money then goes into the pocket of CFMEU officials or the organisation and then gets donated to members opposite. That's another area where a lack of flexibility in the workplace is increasing costs—

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