Craig Emerson (Rankin, Australian Labor Party, Minister Assisting the Finance Minister on Deregulation) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

The bill amends the Textile, Clothing and Footwear Strategic Investment Program Act 1999 to provide legislative authority for the new Clothing and Household Textile (Building Innovative Capability) Scheme.

The scheme is part of the textile, clothing and footwear innovation package announced by the government as part of the 2009-10 budget. This package demonstrates our determination to secure the long-term viability of the TCF industries in Australia.

The Clothing and Household Textile (Building Innovative Capability) Scheme will replace the TCF Post-2005 Strategic Investment Program, otherwise known as SIP, Scheme for the 2010-11 to 2014-15 income years.

The legislative framework established by the bill is modelled on the framework underpinning the TCF Post-2005 (SIP) Scheme. This will ensure that the transition between the old scheme and the new one is as seamless as possible, minimising participants’ administrative and compliance costs.

The new scheme will provide grants to clothing and household textile designers and manufacturers in Australia who invest in innovation.

The Australian industry is making the transition from a tariff of 17.5 per cent on clothing and certain household textile products to a general manufacturing tariff of five per cent, which will apply from 2015.

In order to adjust successfully, the industry will have to become more competitive. It will have to focus on high-technology, high-value products.

This will only happen if manufacturers and designers increase their capacity to develop and apply new ideas. That is why the government is providing specific support for innovation.

The bill provides a total of $112.5 million for innovation grants over the five-year period, which is $5 million a year more than would have been available under the TCF Post-2005 (SIP) Scheme.

As is the case under the existing scheme, grants under the Clothing and Household Textile Building Innovative Capability Scheme will be paid annually and in arrears and will be subject to robust compliance monitoring.

The bill follows an extensive consultation process that started last year when the government commissioned Professor Roy Green to review Australia’s textile, clothing and footwear industries.

I commend the bill to the House.

Debate (on motion by Mrs Mirabella) adjourned.