House debates

Thursday, 9 February 2012

Adjournment

Manufacturing

4:54 pm

Photo of Sharon GriersonSharon Grierson (Newcastle, Australian Labor Party) Share this | | Hansard source

I rise to add my support for jobs in Australia, particularly manufacturing jobs, as manufacturing is central to our Australian economy and plays a vital role in the economy of Newcastle. Hunter Valley Research Foundation figures show manufacturing in the Hunter remains strong, employing 11.1 per cent of our workforce, compared with 8.9 per cent nationally. Our region has created an additional 4,000 new manufacturing jobs in the sector.

But the question for everyone interested in manufacturing is about the future: how will Australian manufacturing fare in the challenges that confront our patchwork economy? These challenges include the shortage and cost of skilled labour, the ongoing impact and uncertainty of the GFC, disparate interest rates for equity loans, the high Australian dollar and the flow-on effect of high commodity prices.

Interestingly, in our first week of parliament we have heard nothing from the opposition on this pressing matter of public importance, just their continuation of 'playing the man' and their promise to slash jobs in the aluminium and steel industries, jobs in the automotive industry and public sector jobs.

Let me contrast this missing-in-action approach with that of HunterNet, the manufacturing cluster organisation in my region. They say:

The message we are getting from government is that to compete in the global supply chain, local industry has to be innovative and focus on high tech and niche market segments. While this makes sense in going forward, it will be a major challenge for most SME's … Nevertheless we have a resilient industry as the Hunter has demonstrated particularly over the last two decades, and our skills and innovative processes have developed significantly over this time.

They continue by saying:

So let's accept the challenges to meet the new paradigm. HunterNet is determined to continue to work with members to facilitate this process, so that together in our 20th year since incorporation we can ensure that we look forward to the next twenty years as a time of even greater progress and growth.

Wow! There are 200 companies in HunterNet and they will work together to confront the challenges of the Asian century. Contrast that to attitude in the new paradigm of the opposition—just say no to assisting industry and blame all job losses on the yet-to-be-introduced carbon price.

The Australian dollar remains high and manufacturers are doing it tough in a competitive international market, but Labor's priority is jobs. We are working with the local manufacturers through the Prime Minister's Taskforce on Manufacturing, we are fostering innovation within the sector and we are driving competitiveness and boosting productivity.

In today's Australian, BHP Chairman and former Ford CEO Jacques Nasser stated that carmakers had invested billions of dollars into the Australian car industry and it would be 'short-sighted not to support them in a very traumatic period'. Car manufacturing is a sector that governments around the world have supported. We are supporting the automotive industry and are determined to provide the sector the certainty required for some long-term investment.

Our $300 million Steel Transformation Plan is supporting Australian steel-makers. In December it was announced BlueScope Steel would receive an advance payment of $100 million. OneSteel is also receiving an advance payment of $64 million under the plan. Our Clean Technology Program is providing $1.2 billion in order to upgrade capital equipment and to carry out research and development in industry, ensuring Australia remains competitive in a carbon constrained world. Our Jobs and Competitiveness Program will provide $9.2 billion to assist manufacturers to remain globally competitive in important industries such as aluminium, steel, zinc and lead. We are supporting research and development through the R&D tax incentive, the single biggest reform to business innovation support in more than a decade.

The opposition, though, say no to supporting manufacturers, no to the car industry and no to Australian workers, intending to cut investment in the sector, slashing $500 million from the $3.4 billion Automotive Transformation Scheme. This is not good enough for the 46,000 Australians employed in the car industry, nor the 200,000 workers that rely in part on that sector for their own jobs—workers in steel, aluminium, glass, precision tool making and engineering. These are all capabilities that we need to retain in this country.

Manufacturing has very wide-reaching benefits. It benefits scientists and engineers. One in five engineers are employed directly in the sector. One-quarter of private research and development in Australia is undertaken by our manufacturing sector. The skills and training fostered by the sector are regarded as the core of a strong, modern economy, as trained workers are able to utilise their skills in other sectors, such as transport, infrastructure, power generation and telecommunications.

By supporting manufacturing, we are supporting Australian knowledge, Australian innovation, Australian skills, Australian jobs and Australia's future. As the Minister for Manufacturing said, 'This is about a fight for jobs, a fight for Australian jobs'—and Labor stands for jobs. These are challenging times, but we are determined to assist our manufacturing sector to enhance innovation, diversity and resilience so that our manufacturing thrives now and into the future. (Time expired)

House adjourned at 17:00